Credit Utilisation Ratio

Credit utilisation measures how much of your revolving credit lines you are actively using at any point in time. It is calculated by taking your total outstanding revolving balances, dividing by your total revolving credit limits across all accounts, and multiplying by 100. Revolving credit means credit you can draw, repay, and draw again - credit cards are the most common example for retail consumers in the GCC.\n\nCredit bureaus incorporate this ratio into consumer credit scores because high utilisation can indicate financial stress or over-reliance on borrowed funds. The ratio is typically reported per individual card as well as in aggregate across all revolving accounts. Lenders - whether UAE Central Bank-licensed retail banks or SAMA-regulated banks in Saudi Arabia - pull this data from the relevant bureau when assessing a credit card or personal loan application.\n\nUtilisation only applies to revolving credit. Instalment loans such as car finance or a home mortgage have fixed repayment schedules and are not counted in the utilisation ratio, though they do appear elsewhere in your credit report.

For English-speaking expats in the GCC, credit utilisation has direct consequences when applying for credit cards, personal loans, or mortgage pre-approvals from local banks. In the UAE, the AECB credit score is routinely requested by Central Bank of the UAE-licensed lenders. In Saudi Arabia, SAMA-regulated banks draw on SIMAH reports. A high utilisation ratio can result in a lower offered credit limit, a higher interest rate, or outright decline - even if you have never missed a payment.\n\nExpats planning to relocate - either between GCC countries or back to their home country - should be aware that closing multiple credit cards before departure shrinks total available credit and can push the utilisation ratio up on any remaining balances. Where possible, clear balances before closing accounts rather than closing accounts first. Also note that foreign-currency spending on a UAE or Saudi-issued card generates an FX conversion at the card network's rate, which may differ from mid-market; this is a separate cost layered on top of any balance you carry.