Credit utilisation ratio

Tobermory

I would like to use my credit card for all spend and then pay off in full each month. I know for a good credit score you should keep you credit utilisation ratio around 20 - 30% (or lower), but is this just the balance left on the account? So if I spend 75% of my credit limit, then pay off in full, is my cru 0%? And is this good or bad for my credit score?

nic_c

Tobermory said:

I would like to use my credit card for all spend and then pay off in full each month. I know for a good credit score you should keep you credit utilisation ratio around 20 - 30% (or lower), but is this just the balance left on the account? So if I spend 75% of my credit limit, then pay off in full, is my cru 0%? And is this good or bad for my credit score?

Do you get benefits from using your card? Do you have more than one.

The balance on credit files is usually from the statements, so if you pay off after the statement every month it will show the balance. If you pay it off before the statement date then it'll show 0.

TadleyBaggie

Credit score is irrelevant as no one else can see it but you. Paying it off at the end of every month is the correct thing to do to maintain a good credit record.

cymruchris

If you're paying off in full every month without fail, it doesn't really matter what you spend (within your limits) - yes the CRA's might bleat about going over 25 percent - but in terms of your history it shows that you spent the money, repaid the money, spent the money, repaid the money, rinse and repeat. And it's your HISTORY that's important - not your score. The score is as useful as a chocolate teapot and only you see it. Let your accounts generate their statement, and then pay by direct debit. Let it all do its thing as it was designed to.