Credit Utilization Ratio
✓ Last verified 14 Sep 2026
The short version
Credit utilization ratio is how much of your total available credit card limit you're actually using at a given time - consistently running it high, even if you pay in full each month, can quietly work against your credit score.
If you have a combined ₹3 lakh credit limit across cards and typically carry ₹2.4 lakh in outstanding charges at statement time, your utilization ratio is 80% - generally viewed unfavorably by credit scoring models, even if you pay the full amount every month before any interest accrues. Keeping utilization comfortably lower (a commonly cited guideline is under 30%) is one of the more controllable levers in your CIBIL score - see our CIBIL score article for the fuller picture of what's being measured and why.
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