यह पेज अभी अंग्रेज़ी में उपलब्ध है।
What is credit utilisation ratio and why does it matter?
Updated · CardKhoj Editorial Team
Short answer
Credit utilisation is the share of your total credit card limit that you are using. If your limits add up to ₹1 lakh and your statements show ₹40,000, utilisation is 40%. Keeping it below 30% — and ideally under 10% — signals that you are not dependent on credit and helps your CIBIL score.
How it is calculated
Utilisation = total balances reported ÷ total credit limits × 100
It is calculated both per card and across all your cards, using the balance on the date the bank reports to the bureau (usually your statement date).
How to lower it
- Pay part of your bill before the statement date, so a lower balance is reported.
- Request a credit limit increase.
- Spread spending across two or three cards.
- Keep old, unused cards open (they add to your total limit).
Does 0% utilisation help?
Not really. Bureaus need to see some activity, so light, regular use that you pay off in full is better than not using cards at all.
This answer is general information, not personalised financial or tax advice. Rules, rates and limits change — confirm with your bank, the RBI or a qualified adviser before making decisions.