What credit utilisation should you aim for?

Detailed Explanation

Low, and consistently low — utilisation is measured from the balance reported by the lender, which is usually the statement balance rather than what remains after you pay. That catches people out: someone who clears the card in full every month can still report high utilisation if they spend most of the limit before the statement date. Paying down before the statement closes, or spreading spending across cards, changes the reported figure. The signal the score is reading is dependence on credit. Using a small fraction of your available limit reads as capacity; using most of it reads as strain, even when you pay it off.