Credit utilisation is one of the biggest levers you have over your score — and there's a timing trick around it that almost nobody knows. Let's break it down.
What is credit utilisation?
Utilisation is simply how much of your available credit you're using. If your card limit is £2,000 and you're carrying a £1,000 balance, that's 50% utilisation. Lenders read high utilisation as a sign you're financially stretched.
The 30% rule of thumb
As a general guide, keeping your utilisation under about 30% is where many people see their score respond well. On a £2,000 limit, that's keeping the reported balance under roughly £600. Lower is generally better, though having some activity is fine — the goal isn't to never use credit, it's to avoid looking maxed out.
The statement-date trick
Here's the part that surprises people: your card reports your balance to the credit agencies on your statement date, not your payment due date. So even if you always pay in full, whatever balance is sitting there on the statement date is the number that gets reported.
A quick worked example
Say you spend £900 a month on a £2,000-limit card and pay it off every month. If the full £900 is on your card on the statement date, your reported utilisation is 45%. Pay £500 of it a few days before the statement date, and the reported balance drops to £400 — about 20% utilisation. You spent exactly the same; the number lenders see is very different.
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