C
Credit
Credit Utilisation Ratio
The percentage of your available credit that you are currently using. For example, if you have a R10,000 credit limit and owe R3,000, your credit utilisation is 30%. Keeping this ratio below 30% is generally recommended to maintain a healthy credit score.
Usage Examples
"Her credit utilisation ratio jumped to 85% after maxing out her credit card, which dropped her credit score by 40 points."
"Aim to keep your credit utilisation below 30% — lenders see high utilisation as a sign of financial stress."
"Paying down your credit card balance before the statement date can improve your credit utilisation ratio immediately."