Utilisation: the ratio that moves your score
The short answer
Utilisation is the balance divided by the credit limit, measured per card and across all cards together. Lower generally scores better. The detail that decides your number is not what you owe on the due date — it is the balance the issuer reported at statement close.1
That single fact is the reason two people with identical spending can report very different utilisation figures, and why the timing of a payment matters as much as its size.
Why the statement date matters more than the due date
Issuers report to the credit bureaus once a cycle, and the figure reported is normally the statement balance. Pay the card down after the statement closes and before the due date, and you have met the obligation — but the higher balance has already been reported.
Paying before the statement closes, rather than before the due date, changes what gets reported. The payment is the same; the reported balance is lower.
Per-card and overall are measured separately
Both matter. A single card near its limit can depress a score even where the overall ratio looks comfortable, because scoring models read the per-card ratio as well as the aggregate.
| Measure | What it describes | What moves it |
|---|---|---|
| Per-card utilisation | Balance on one account against that account's limit | Balance on that card, or its limit |
| Overall utilisation | Total balances against total limits | Every card, and every limit on file |
| Reported balance | What the issuer sent at statement close | Timing of payments within the cycle |
| Limit increases | Available credit without new spending | The issuer's periodic review |
Where the rate enters the picture
Carrying a balance raises utilisation and charges interest at the same time. In the Federal Reserve's most recent reading, the average APR on accounts that assessed interest was 22.36%.2 The two effects compound: the balance that hurts the ratio is also the balance being charged daily.
Other inputs besides balances
Payment history carries the most weight of any scoring input, and length of credit history rewards accounts kept open over years. Utilisation matters, but a household that pays on time and holds accounts long-term is not undone by a single high month.
Where the rules differ
Reporting requirements sit partly in federal consumer protection law and partly in state law, and what must be reported, and when, can differ. The measures above describe how the figures are read, not a standard set by regulation.
1. Consumer Financial Protection Bureau (CFPB), consumer guidance on credit reporting and on how balances are reported to nationwide consumer reporting agencies. Checked 31 October 2026.
2. Federal Reserve Board, Consumer Credit (G.19), release dated 7 October 2026. Average APR across all credit card accounts (21.19%) and on accounts assessed interest (22.36%), 2025 Q1 – 2026 Q3. Checked 31 October 2026.
No price figures are published on this page. Figures published by the Federal Reserve are national averages and change with every monthly release.