Credit Utilization Ratio
Definition
The percentage of your total credit limit you are currently using; keeping it below 30% is widely advised.The credit utilisation ratio is your total outstanding revolving-credit balance (mainly credit cards) divided by your total credit limit, expressed as a percentage. TransUnion CIBIL lists it among the main factors in a CIBIL score, and the commonly advised guideline in India is to keep it below 30%. It is based on the balance reported to the bureau — usually the statement balance — so it can change from month to month as balances move.
Related guides
Related terms
- CIBIL Score — A 3-digit credit score from 300 to 900 issued by TransUnion CIBIL that summarises an individual's credit history.
- Credit Report — A detailed record of a person's borrowing and repayment history maintained by a credit bureau.
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