New Delhi, Oct. 9 -- You may spend Rs.30,000 on your credit card every month and see your credit score take a hit, while a friend spending the same amount sees no such impact. The difference could lie in your respective credit limits, which determine how much of your available credit you are using.

This is where your credit utilisation rate comes into play. If you have multiple credit cards at once, the utilisation rate is calculated across them collectively, rather than being assessed separately for each card.

Let's say you and your friend each spend Rs.30,000 on your credit cards every month. Your friend has a total credit limit of Rs.1 lakh, while you have a limit of Rs.50,000. Your credit utilisation rates would be 30% and 60%, resp...