Will the credit card utilization ratio is counted by all active cards ?

[shreyasu]

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 ?

 

[TaxWiser]

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 ?

How Credit Utilization Ratio is Calculated:

Credit utilization ratio = (Total credit used ÷ Total credit limit) × 100.

In your case:

• 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%.

Impact on CIBIL Score:
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.

 

[hitirfan]

Credit Utilisation is checked on individual cards.
CIBIL Dashboard will show Credit Utilisation 33.33% but it will have huge impact on score.

 

[TaxWiser]

Credit Utilisation is checked on individual cards.
CIBIL Dashboard will show Credit Utilisation 33.33% but it will have huge impact on score.

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 below

 

[hitirfan]

I usually use 1 CC. It has 17% Utilisation and overall CUR is 2%, my CIBIL dropped 2 points.

 

[himanshubansal93]

How Credit Utilization Ratio is Calculated:

Credit utilization ratio = (Total credit used ÷ Total credit limit) × 100.

In your case:

• 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%.

Impact on CIBIL Score:
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.

Agree, it would be "Spend across all cards/Combined limit of all cards" %.. But its good practice to keep it below 30%.