Using full credit limit can harm your credit score experts say

Using your entire credit limit is not advisable, as it can negatively affect your credit score. A low credit utilization ratio, ideally below 10%, is preferred. Staying under 30% is generally considered acceptable. Credit utilization ratio measures how much of your available credit you are using. For example, if you have a credit limit of ₹ 10 lakh and a balance of ₹ 5 lakh, your ratio is 50%. Lower ratios indicate responsible credit management. To maintain a good credit utilization ratio, pay off balances before the statement date, consider requesting a higher credit limit, use multiple cards to spread spending, and avoid closing cards, which can reduce your total available credit.