If you have looked at your Credit insights, you may have seen credit usage (sometimes called credit utilisation) and wonder what this is. Credit usage is the amount of credit available to you compared to how much you are using.

For example, if you have a credit card with a limit of £1000 and you have a balance of £250, your credit usage would be 25%.

For most lenders, 25% is the suggested credit usage as this suggests to lenders that you can manage your finances responsibly. If your credit utilisation is closer to 100%, this may appear to lenders as though you are in need of more credit and, as a result, could be less likely to pay this back.