Glossary
Credit utilization ratio
Credit utilization is the percentage of your total available credit limit that you are currently using — a key input into your credit score, ideally kept below 30%.
Utilization is calculated per card and across all your cards combined: total balances owed divided by total credit limits. A AED 3,000 balance on a AED 10,000 limit is 30% utilization on that card.
Credit bureaus and lenders read high utilization as a signal of financial stress, even if you pay your statement in full every month — many issuers report your balance on the statement date, before your payment posts, so utilization can look high on your credit report regardless of your actual repayment behaviour.
Keeping utilization below roughly 30% (and ideally lower) on each card and overall is one of the most controllable levers for improving a credit score, alongside on-time payments and account age. Paying down balances before the statement date, or requesting a credit limit increase without spending more, both lower utilization.