Credit utilisation
How much of your credit card limit you are using, as a share of the total.
Credit utilisation is the part of your card limit you have used. Lower is better for your credit score, because heavy use suggests you lean on credit. Keeping it well under your limit helps.
Questions people ask
What is credit utilisation?
The share of your credit card limit you are currently using. Spending 20,000 on a 1,00,000 limit is 20% utilisation.
What utilisation is good for my credit score?
Lower is generally seen as better, because heavy use suggests you lean on credit. There is no official cutoff, so treat this as general guidance.
Does high utilisation hurt my credit score?
It can, because bureaus read heavy card use as higher risk. Keeping your balance well under the limit, or paying before the statement date, helps. This is general information, not financial advice.
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