This article assessed credit utilization among arable farmers in Kwara state, Nigeria and its influence on farm income. The data analyzed were collected from 100 farmers purposively sampled. Despite an average of 11years experience, 47% of the farmers have not benefited from agricultural credit. Average income per hectare for farmers who were able to access funds for their farm business was higher (N52,000/$325) than for those who did not (N35,430/$221) however, average loan granted (N55,550/$347)was lower than applied for (N77,900/$486). Lack of collateral was a major limitation for sourcing for credit. Factors determining farmers’ decision to use credit included household size, use of hired labour, cooperatives participation, awareness of credit sources, past loan size, possession of collateral and proximity to the credit lending institution. Policies and programmes directed at enhancing these factors will increase farmers’ decision to use agricultural credit.