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Credit — Intermediate
Keep credit utilization below 30% of your total limit across all cards.
Concept
Keep credit utilization below 30% of your total limit across all cards.
Credit utilization is the percentage of your available credit limit that you're using. It accounts for ~30% of your CIBIL score. Banks report your outstanding balance to credit bureaus once a month. If your limit is ₹2L and you consistently carry ₹1.5L balance (75% utilization), your score drops even if you pay on time.
हिंदी मेंCredit utilization बताता है कि available credit limit का कितना percent use हो रहा है। CIBIL score में ~30% weightage है। Banks हर month outstanding balance report करते हैं। ₹2L limit पर ₹1.5L balance (75% utilization) — even on-time payment करें तो score गिरेगा।
Example
See it in action
Rahul has a ₹3L credit limit. He spends ₹2.5L monthly and pays full bill. But the bank reports his balance mid-cycle as ₹2.5L (83% utilization). His CIBIL drops to 680. Fix: he requests a limit increase to ₹6L — same spending, but utilization falls to 42%. Score recovers to 750+ in 3 months.
हिंदी मेंRahul की credit limit ₹3L है। Monthly ₹2.5L spend और full bill pay। लेकिन bank mid-cycle balance ₹2.5L report करता है (83% utilization) — CIBIL 680 हो गया। Fix: limit increase request ₹6L — same spending, utilization 42%। 3 months में score 750+ recover।
Key takeaway
Remember this
Below 30% utilization is good, below 10% is excellent. Request a limit increase or split spending across cards to lower the ratio.
Using your full credit limit doesn't prove you're creditworthy — it signals financial stress and tanks your CIBIL score.
हिंदी में30% से नीचे utilization अच्छा है, 10% से नीचे excellent। Limit increase request करें या multiple cards पर spending split करें।
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