Your credit utilisation ratio (CUR) is just the credit used in relation to the available limit on your credit card. If the available limit on your credit card is Rs 1 lakh; you spend Rs 40,000 in a month; your CUR is 40 percent. This statistic is kept under close watch by lenders and credit bureaux. A healthy CUR is below 30 percent. Anything higher shows risk and brings your score tumbling back.

Why a high CUR is a problem

Spending too much of your limit consistently makes you appear credit-hungry to the banks. Even if you repay on time, the lenders may perceive this negatively due to financial strain. Gradually this trend minimises your credit score, which impacts your loan eligibility or higher interest rates at the time of lending.

Simple ways to bring it down

The obvious thing t

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