Credit Utilisation Ratio

Credit utilisation is your outstanding card balance divided by your sanctioned limit — calculated per card and across all cards. CIBIL names high credit utilisation among the four key factors behind its score and says it may negatively impact the score; no bureau publishes a weighting or a safe threshold, so treat it as a signal you can control rather than a limit you must not cross. Paying down a balance before a lender reports it is the reliable lever; closing a card cuts your available limit and usually pushes the ratio up.