Credit Utilizstion Query

[Karunakara]

Hi members,
I want to know how the credit utilisation ratio is calculated by CIBIL.

If I have four cards and my credit utilisation ratio is different in case of each card. In my primary card I may utilise 70% and of credit limit and in other cards it may be below 5%.

Is it that credit utilisation should not cross 30% in each card or overall 30% on four cards together?

What is the thumb rule? In each and every card it should not cross 30%? Or all cards put together should not cross 30% of total credit limit of all cards?

Thanks

 

[17ysaurabh]

If you check the CIBIL score from the official website or app, they show overall credit utilisation.
So, I think it's most likely based on the overall credit utilisation.

 

[shashwat]

All cards put together. That's always how it's calculated. However, it's always better to balance usage a little. The overall utilisation is the most important number, but care-specific utilisation also matters when it comes to the CIBIL score (just not as much as overall).

It's a bad practice to be going 70% utilisation on one card, even if your overall utilisation is low. I would still suggest going for a limit increase on that card, or using your other cards more.

 

[Utkarsh Sharma]

Your utilization ratio is calculated based on the total of the credit i.e. sum of the credit limit of your 4 cards.

 

[anuragmukherjee28]

Hi members,
I want to know how the credit utilisation ratio is calculated by CIBIL.

If I have four cards and my credit utilisation ratio is different in case of each card. In my primary card I may utilise 70% and of credit limit and in other cards it may be below 5%.

Is it that credit utilisation should not cross 30% in each card or overall 30% on four cards together?

What is the thumb rule? In each and every card it should not cross 30%? Or all cards put together should not cross 30% of total credit limit of all cards?

Thanks

try to keep the credit utilisation ratio of each of the credit card under 30% thats the thumb rule, what you are currently doing, may affect your credit score in long run

 

[zacobite]

Hi members,
I want to know how the credit utilisation ratio is calculated by CIBIL.

If I have four cards and my credit utilisation ratio is different in case of each card. In my primary card I may utilise 70% and of credit limit and in other cards it may be below 5%.

Is it that credit utilisation should not cross 30% in each card or overall 30% on four cards together?

What is the thumb rule? In each and every card it should not cross 30%? Or all cards put together should not cross 30% of total credit limit of all cards?

Thanks

overall... but individual banks will check for their own cards as well for any future upgrade / LE etc.. if they don't do a cibil chk.. so keep all cards low.. we tend to use one card as primary but then ensure that that card has high limit... or ensure that you pay off in full before cibil reporting date..