Credit utilisation

Credit utilisation is the share of your available credit limit you are actually using, measured mainly on credit cards. If your cards total ₹3,00,000 in limits and you carry ₹1,20,000 of balance, utilisation is 40%. It is one of the heaviest factors in a CIBIL score, second only to payment history, and unlike a missed EMI (Equated Monthly Instalment) it can be fixed within one billing cycle. Bureaus generally read utilisation above roughly 30% as strain. The figure reported is your balance on the statement date, so paying before that date lowers what gets recorded.