Credit utilisation explained: your real healthy spend limit

Credit utilisation is the share of your available credit you are actually using. If you have a 3,000 limit and a 1,200 balance, your utilisation is 40%. It is one of the largest inputs into most credit scores, and it is also the fastest one to fix — it updates every statement cycle.

What counts as healthy

• Under 30% is the widely cited safe zone.
• Under 10% is where scores generally look their best.
• Above 50% is treated as a stress signal by most lenders, even if you pay in full.

The trap: statement date, not due date

Most issuers report your balance on the statement date, not after you pay. So you can clear the card in full every month and still be reported at 70% utilisation, simply because you spend heavily before the statement cuts. Paying part of the balance before the statement date fixes this without costing you anything.

Working out your healthy spend limit

Take your total credit limit across cards, multiply by 0.3, and subtract what you already owe. That is roughly what you can put on plastic this cycle while staying in the safe band. Do it per card too — a single maxed card hurts even when your overall utilisation looks fine.

Let the statement do the work

MoneyQuilt reads your uploaded or emailed card statements, picks up the limit and closing balance, and tells you your utilisation per card plus a healthy spend figure for the cycle. No spreadsheet, no manual entry.