New Delhi, May 27 -- Many people are surprised when their credit score declines despite paying the required bills on time. One often-overlooked reason is the credit utilisation ratio (CUR) and its impact on a borrower's overall financial profile.

This is a simple yet powerful factor, like a report card; it reflects how sincere, devoted, and responsible an individual is in using their available credit. That is why acknowledging and understanding it can help immensely improve your financial health and borrowing potential. Let us discuss this concept at a deeper level so it can help you make better financial decisions in the future.

Credit utilisation ratio is the percentage of your total available credit that you are currently using. It i...