How Credit Utilization Ratio is Calculated:For example - I have 3 credit cards with total 3.75 lakhs limit each with 1.25. Now if i use for buying product of 1.25 lakhs on EMI by any 1 card how does the credit utilization ratio calculated ?
Does it affect cibil score ?
If yes Is there any other way ?
I used 96% of one of my credit cards in October 2024 which was around 40% of my total credit limit, but it hasn't had any major impact on my CIBIL score since then, as evident in the screenshot belowCredit Utilisation is checked on individual cards.
CIBIL Dashboard will show Credit Utilisation 33.33% but it will have huge impact on score.
Agree, it would be "Spend across all cards/Combined limit of all cards" %.. But its good practice to keep it below 30%.How Credit Utilization Ratio is Calculated:
Credit utilization ratio = (Total credit used ÷ Total credit limit) × 100.
In your case:
Impact on CIBIL Score:
- Total credit limit = ₹3.75 lakhs (across 3 cards).
- Credit used = ₹1.25 lakhs (on one card).
- Credit utilization ratio = (₹1.25 lakhs ÷ ₹3.75 lakhs) × 100 = 33.33%.
A credit utilization ratio above 30% can negatively impact your CIBIL score. It signals to lenders that you might be over-reliant on credit, which could lower your creditworthiness.
But it is not that significant change to worry about.![]()