Credit Utilization Calculator

Why Credit Utilization Matters

Your credit utilization ratio is one of the most important factors in determining your credit score. It measures how much of your available credit you are currently using.

The 30% Rule

Financial experts universally recommend keeping your credit utilization ratio below 30%. For example, if you have a total credit limit of ₹1,00,000, you should try to keep your outstanding balances below ₹30,000 at all times.

Those with the highest credit scores often keep their utilization below 10%. High utilization indicates to lenders that you might be relying too heavily on borrowed money and could be a higher risk for default.

How to Improve Your Ratio

• Pay down balances: The most direct way is to pay off your credit card debt.
• Request a limit increase: Ask your credit card issuer for a higher limit (but don't increase your spending).
• Keep cards open: Don't close old credit cards, as closing them reduces your total available credit limit and increases your utilization ratio.