Credit utilisation ratio: How to keep it at an optimum level

If you have recently started using a credit card, it is recommended to avoid exhausting its entire credit limit. For example, when the credit limit of your credit card is ₹10 lakh, the credit utilisation ratio should remain under ₹3 lakh. For instance, when you want a ₹10 lakh credit limit, and one credit card’s limit is capped at ₹5 lakh -- it is recommended to keep two credit cards with a limit of ₹5 lakh each. This way even if you exhaust the entire credit limit of one credit card, it would still be 50 percent of your overall credit limit. Part payment to improve the ratio: When your credit card bill is too high, you can clear at least a part of it to improve your credit utilisation ratio.