Credit utilisation

Credit utilisation is the percentage of your total available credit limit that you are currently using. For example, if your credit limit is ₹1,00,000 and your outstanding balance is ₹30,000, your utilisation is 30%. It is one of the most heavily weighted factors in your credit score calculation. Most credit bureaus and lenders consider utilisation above 30% to start negatively affecting your score, even if you pay your bill in full every month, since utilisation is typically measured based on your statement balance, not your final payment.