Credit Term
Credit Utilisation
How much of your available credit-card limit you are actually using, shown as a percentage. Using RM3,000 of a RM10,000 limit is 30% utilisation. Keeping this figure low is one of the fastest ways to help your score.
Utilisation is your outstanding card balance divided by your credit limit. Lenders read high utilisation — say consistently above 70–80% of your limit — as a sign you may be stretched, even if you always pay on time. A common rule of thumb is to keep utilisation below about 30% of each card's limit, and below that across all your cards together.
Because utilisation is based on the balance reported each month, you can lower it without spending less: pay part of the bill before the statement date, spread spending across cards, or ask for a higher limit (and not use it). Unlike a late payment, high utilisation leaves no lasting scar — bring the balance down and the next report reflects the improvement, so it is one of the quickest levers you control.
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This definition is drafted against primary sources (Bank Negara Malaysia, AKPK and the relevant Acts) and is pending editorial fact-check. If you find an error, tell us and we will correct it with a dated note.