Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Credit utilisation is the percentage of available revolving credit currently used, heavily influencing credit scores.
Credit utilisation is how much of your credit card limit you use — using too much hurts your CIBIL score even if you pay on time.
Calculated per card and aggregate across cards. Below 30% utilisation recommended; below 10% optimal for score. High utilisation signals credit stress to lenders even with full payment habit. Limit increases can improve utilisation ratio if spending unchanged.
₹2 lakh combined limit, ₹90,000 outstanding = 45% utilisation — likely depresses score. Pay down to ₹40,000 (20%) before home loan application.
Credit Utilisation = (Outstanding Balance ÷ Total Credit Limit) × 100Statement date balance reports to bureau. Pay before statement generation or request mid-cycle payment to lower reported utilisation.
Both per-card and overall utilisation affect score. One maxed card hurts despite low overall utilisation.
Higher limit with same spending lowers ratio. Avoid temptation to spend more after limit increase.