What it is
Credit utilisation is the share of your total credit card limit that you are using. If your limits add up to ₹1,00,000 and your statement balances total ₹45,000, your utilisation is 45%.
Why it matters
High utilisation can suggest you rely heavily on credit. Many experts suggest keeping it under about 30%, both overall and on each card.
Ways to lower it
- Pay down balances before the statement date
- Spread spending across cards rather than maxing one
- Request a limit increase if your income supports it, and do not increase spending
- Avoid closing unused cards that add to your total limit
This guide is general educational information, not financial or legal advice. Rules can change. Check the latest guidance from the RBI and the credit bureaus.