Calculate one account first
Illustrative example: a $900 balance divided by a $3,000 limit equals 0.30, or 30%. If that balance falls to $600 while the limit stays $3,000, the ratio is 20%. The change is arithmetic, not a promise of a certain number of credit-score points. A zero or missing limit needs clarification rather than division by zero.
An overall ratio can hide a concentrated balance
Suppose one card has a $900 balance and $1,000 limit, while another has a zero balance and $4,000 limit. The combined ratio is 18%, but the first card is using 90% of its own limit. Keep both the account-level and combined picture. Do not average the two percentages without weighting the limits.
Match the dates in the comparison
A balance visible in your bank app today may differ from the balance last sent to a bureau. Compare the report’s update date with the statement or account records. If you recently paid, check the reporting status before assuming an unchanged score means the payment had no effect. Keep the same measurement method when reviewing progress.
Treat the ratio as one part of the payment plan
FCAC identifies heavy use of available credit as a factor in credit assessment. Reducing an expensive balance may also help your budget, but requesting more credit just to change a ratio introduces another decision. Ask whether that request creates an enquiry, costs money or makes it easier to borrow beyond what you can repay.
Prepare for a conversation
- The balance and limit for each relevant account.
- Matching reporting dates.
- Account-level percentages as well as the combined ratio.
- An affordable plan for reducing the balance.
You do not need account numbers, a SIN, banking credentials or uploaded documents to start our enquiry.
Will reaching exactly 30% guarantee a better score?
No. A utilization guideline is not a published score formula or an approval threshold. Your history, model and other information still matter. Do not spend or borrow solely to hit an advertised number.