Loans & credit
Credit utilisation
The share of your credit card limit you are using; keeping it low protects your credit score.
Credit utilisation is how much of your total card limit you currently owe. Spend ₹40,000 on a ₹1L limit and you are at 40%.
Keeping it under 30% signals you are not desperate for credit, which helps your score.
Even if you pay in full each month, a high utilisation snapshot on the reporting date can dent your score.
For example
On a ₹1L card limit, regularly spending ₹70,000 keeps utilisation at 70%, which can quietly drag your credit score down.