{"id":1110,"date":"2020-07-28T01:21:05","date_gmt":"2020-07-27T21:21:05","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=1110"},"modified":"2020-08-01T00:33:15","modified_gmt":"2020-07-31T20:33:15","slug":"credit-utilization-rate","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/","title":{"rendered":"Credit Utilization Rate  : Whats a Good Credit Utilization Ratio On Credit Cards ?"},"content":{"rendered":"<h1><span class=\"ez-toc-section\" id=\"What_is_a_Credit_Utilization_Rate\"><\/span>What is a Credit Utilization Rate?<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>In Simple words, Credit Utilization rate means the percentage of your approved Credit Limit you already used. Its also Called Credit utilization ratio.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e0ea14b99b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e0ea14b99b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#What_is_a_Credit_Utilization_Rate\">What is a Credit Utilization Rate?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#How_to_calculate_Credit_Utilization_Rate\">How to calculate Credit Utilization Rate?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#Credit_Utilization_rate\">Credit Utilization rate =<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#Your_Total_Credit_Card_Outstanding_Balance\">Your Total Credit Card Outstanding Balance\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#Your_Total_Credit_Limit_on_Credit_Cards\">Your Total Credit Limit on Credit Cards<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#What_is_a_Good_Credit_Utilization_rate_on_Credit_Cards\">What is a Good Credit Utilization rate on Credit Cards (%)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#Check_out_our_Free_Credit_Utilization_Rate_Calculator\">Check out our Free Credit Utilization Rate Calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#Credit_utilization_Rate_and_your_Credit_Score_in_UAE\">Credit utilization Rate and your Credit Score in UAE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#How_can_I_control_my_Credit_Card_Utilization_Should_I_close_my_credit_cards\">How can I control my Credit Card Utilization? Should I close my credit cards?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#1_Pay_your_Credit_Card_balance_in_full_each_month_before_due_date\">1. Pay your Credit Card balance in full each month before due date<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#2_Consider_setting_a_monthly_spending_limit\">2. Consider setting a monthly spending limit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#3_Redeem_your_rewards\">3. Redeem your rewards\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/#4_Set_up_spending_alerts_as_well_as_security_alerts\">4. Set up spending alerts as well as security alerts<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"How_to_calculate_Credit_Utilization_Rate\"><\/span>How to calculate Credit Utilization Rate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>the amount of revolving credit you&#8217;re currently using divided by the total amount of revolving credit you have available<\/p>\n<blockquote>\n<h3><span class=\"ez-toc-section\" id=\"Credit_Utilization_rate\"><\/span><span style=\"color: #333399;\"><strong>Credit Utilization rate<\/strong> = <\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Your_Total_Credit_Card_Outstanding_Balance\"><\/span><span style=\"color: #333399;\">Your Total Credit Card Outstanding Balance\u00a0\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"Your_Total_Credit_Limit_on_Credit_Cards\"><\/span><span style=\"color: #333399;\">Your Total Credit Limit on Credit Cards<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Good_Credit_Utilization_rate_on_Credit_Cards\"><\/span><strong>What is a Good Credit Utilization rate on Credit Cards (%)?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p>Your credit utilization ratio describes the relationship between your credit card balances and your aggregate spending limit. As a rule of thumb, your credit utilization ratio should not exceed 50% for very long, if ever. High ratios may adversely impact your credit score UAE and have further negative consequences. To be on the safe side, shoot for a 30% credit utilization ratio.<\/p>\n<figure id=\"attachment_1201\" aria-describedby=\"caption-attachment-1201\" style=\"width: 3000px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/clay-banks-c2a0tydmlas-unsplash\/\" rel=\"attachment wp-att-1201\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1201\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2020\/07\/clay-banks-c2a0TydMlAs-unsplash.jpg\" alt=\"Credit Utilization rate\" width=\"3000\" height=\"2002\" \/><\/a><figcaption id=\"caption-attachment-1201\" class=\"wp-caption-text\">Credit Utilization rate<\/figcaption><\/figure>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Check_out_our_Free_Credit_Utilization_Rate_Calculator\"><\/span>Check out our Free Credit Utilization Rate Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><code><\/code><\/p>\n<div class=\"cognito\"><script src=\"https:\/\/www.cognitoforms.com\/s\/qWaAkeW7D0SK_NYW418FaQ\"><\/script><br \/>\n<script>Cognito.load(\"forms\", { id: \"14\" });<\/script><\/div>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Credit_utilization_Rate_and_your_Credit_Score_in_UAE\"><\/span>Credit utilization Rate and your <a href=\"http:\/\/moneymall.ae\/credit-score\">Credit Score in UAE<\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"_2PmHd\">Credit Utilization rate on Credit Card is an Important factor on Credit Report and Higher Credit Utilization can impact on your overall credit score, Credit scoring companies like <a href=\"http:\/\/aecb.gov.ae\" target=\"_blank\" rel=\"noopener\">AECB<\/a>, often consider your credit utilization rate when calculating your credit score, But your UAE credit score is composed of many other factors too. If your overall credit report is in excellent condition, It will not have that big an impact if you have a higher utilization for a shorter time.<\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_can_I_control_my_Credit_Card_Utilization_Should_I_close_my_credit_cards\"><\/span><strong>How can I control my Credit Card Utilization? Should I close my credit cards?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you are someone who uses credit cards for day-to-day expenses, you probably realize that it is essential to control your credit card Utilization spending. Even if you have the best credit cards in UAE, you still need to use it wisely to gain its rewards.<\/p>\n<p>A credit card in UAE is one of the most common financial tools and also a leading cause of financial distress. In such a scenario, it is extremely important to manage your spending. Do not worry, you do not need to close your credit cards altogether to control your credit utilization. You can simply follow these tips suggested by MoneyMall Credit Blog Team:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"1_Pay_your_Credit_Card_balance_in_full_each_month_before_due_date\"><\/span><strong>1. Pay your Credit Card balance in full each month before due date<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>The best way to keep your credit utilization ratio low and avoid costly interest charges is to pay your credit card balance in full each month. An effective spend-control strategy involves not spending more than you can comfortably pay down each month so that you reduce your likelihood of developing persistent credit card debt.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"2_Consider_setting_a_monthly_spending_limit\"><\/span><strong>2. Consider setting a monthly spending limit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>This is a more specific approach that takes the &#8220;pay your balance in full each month&#8221; strategy one step further. Setting a strict monthly spending limit that&#8217;s well within your budget increases the chances that you will actually be able to zero out your monthly balance and avoid interest charges. Thus, only spend a specific amount or less each month so that you can repay the full balance easily.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"3_Redeem_your_rewards\"><\/span><strong>3. Redeem your rewards\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>If you have a rewards credit card in UAE, you might be able to use it to help improve your financial wellness. If you have a pure cashback credit card, use any cash rewards you receive to put toward your account balance or direct deposit it into a savings account. Alternatively, if you have reward points credit cards, you can use your rewards to buy discounted gift cards to the stores you know and love and save on future purchases without having to use your credit card. You may also be able to redeem your reward points for cash redemption to put into savings or towards your account. Just make sure you know when your rewards expire to get the most out of them.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"4_Set_up_spending_alerts_as_well_as_security_alerts\"><\/span><strong>4. Set up spending alerts as well as security alerts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>If you are worried about controlling your credit card spending, set up customized spending alerts that let you know when you have made an abnormally large payment or exceed a certain balance threshold. These alerts will prohibit you from spending more than your monthly limit. Additionally, the best credit cards in UAE also need to be protected against security threats. So, pair these informational alerts with security alerts designed to flag potentially fraudulent spending patterns.<\/p>\n<p>Thus, it is extremely important to be mindful of the everyday purchases you make on a credit card. This will not only help you to spend less but also improve your credit score UAE and be financially beneficial for you in the long run. When used wisely, credit cards are tools that can help you make more progress along your financial journey.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Credit Utilization Rate? In Simple words, Credit Utilization rate means the percentage of your approved Credit Limit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[76,2],"tags":[61,359,362,360,363,361],"class_list":["post-1110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-terms-dictionary","category-credit-cards","tag-aecb-credit-score","tag-credit-utilization","tag-credit-utilization-on-credit-cards","tag-credit-utilization-rate","tag-credit-utilization-ratio","tag-credit-utilization-ration"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=1110"}],"version-history":[{"count":12,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1110\/revisions"}],"predecessor-version":[{"id":1244,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1110\/revisions\/1244"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/1201"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=1110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=1110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=1110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}