Credit Utilization

[ShahilD]

Let's say, I have a credit card with a limit of 10,000 and haven’t utilized any of it yet.
If I purchase a product worth 3,990 on a 3-month no-cost EMI plan, what amount will be blocked initially, and what will be reflected as the utilization on my statement?”

 

[launchcraft]

whole amount of 3990 will be blocked, as you make the payment you money will be released.
your credit utilization for this month would be 40%.
It will not affect much on your credit score as this is the first time you are using your card and this much limit.
This will be the only month reflecting 40% usage.

 

[ShahilD]

What if I pay the full amount of the product upfront and then repay 50% of it to the CC before the statement is generated?
Will that result in a 20% utilization?

 

[launchcraft]

What if I pay the full amount of the product upfront and then repay 50% of it to the CC before the statement is generated?
Will that result in a 20% utilization?

yes whatever amount will be due on the statement generation date will result in the total credit utilization percentage.