Is using 90% of your credit card limit once a problem? Experts explain impact on credit score
New Delhi, Sept. 18 -- When you use a large portion of your credit card limit in a single month, it may not automatically result in damaging your credit profile. Especially when the bill is paid in full within the stipulated time.
However, if you consistently maintain a very high credit utilization ratio, it can raise concerns for lenders and may even affect your credit score and future borrowing prospects, as you might be seen as a 'credit-dependent' person.
Credit utilization refers to the percentage of an individual's total available credit that they are using at a particular time. For example, using Rs.90,000 against a Rs.1 lakh credit card limit means 90% utilization.
Borrowers are advised to keep their credit utilization ratio be...
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