New Delhi, Sept. 20 -- Credit utilisation rate refers to the percentage of your available credit limit that you are using at a given time. It is calculated by dividing your outstanding credit card balance by your total available credit limit.

For example, using Rs.50,000 against a Rs.1 lakh credit card limit means 50% utilisation. A lower rate indicates more available credit, while a very high usage level can signal repayment pressure, even if you usually pay on time.

However, if you have multiple credit cards, the question is whether the 30% threshold should be maintained separately for each card or calculated based on your combined credit limits and outstanding balances.

No, the 30% benchmark applies to your overall credit utilisatio...