Key Takeaway
Credit utilization (outstanding balance / total credit limit) should stay below 30% for a healthy credit score. Using ₹30,000 of a ₹1 lakh limit is optimal; using ₹90,000 severely damages your score.
Credit Cards Details
Status: Good / Healthy
Your utilization is in the recommended 10% - 30% range. This shows responsible credit behavior to lenders.
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Frequently Asked Questions
What is Credit Utilization Ratio?
It is the percentage of your total available credit limit that you are utilizing across all credit cards. For example, using ₹30,000 of a ₹1 Lakh limit means a 30% utilization ratio.
What is a good Credit Utilization Ratio?
A ratio under 30% is considered healthy. Utilizing more than 30% flags you as high-risk or credit-hungry to credit bureaus, causing your CIBIL score to decline.
Does paying off credit card balances early help?
Yes. Paying your card balances before the bank reports them to the credit bureau (usually on your statement generation date) keeps your reported credit utilization low.
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