How much of credit limit usage will ensure my credit score doesn’t go low? Does limit usage play the main factor in score fluctuation? What do you think?
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Usage definitely plays a good role in your credit score, it is usually recommended to keep it under 30-40% instead of 100% utilization or over usage (in some cards). Higher spends over a constant period of time can risk lower your score. But it also depends upon the number of cards you hold and spendings on it. It is said that HDFC doesn’t report its credit limit to credit bureaus and pushes 100% usage, but overall it depends on your spending cycle in each card, also there have been quite some changes, which you can check on FAQs on Restructuring Scheme of RBI | HDFC Bank. In case of overspendings, request for credit limit increase to be safe or use multiple cards to balance and keep utilization low.
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Mere using the credit card does not reduce your credit score. However, there can be an impact on your CIBIL or Experian credit score if you constantly keep your utilisation to over 70-80% of the limit. In that case, banks look at you as an individual with not so good credit habits and may deny further credit cards or loans.
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How HDFC Credit Card Can Affect Your Credit Score?
7 Strategies for Raising Your Credit Score
On-Time Payments: Your score will increase if you pay your payments in full and on time.
Low Credit Utilization: Credit health is enhanced when credit utilization stays below 30% of the limit.
Extended Credit History: Having your card for a longer time creates a solid credit history.
Diverse Credit Mix: Having loans and credit cards enhances your credit score.
Ways to Lower Your Credit Score Missed or Late Payments: A single late payment lowers your score.
High Credit Utilization: Your score may suffer if you regularly use more than 50–70% of your limit.
Regular Credit Card Applications: Applying for several cards at once raises the number of hard queries.
Terminating Previous Credit Cards Your credit history is shortened when you cancel a long-held card.
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Yes, keeping your credit utilization below 30-40% can indicate banks that you can manage your finances efficiently and you seem low risky to banks. Credit Utilization is the percentage of your total available credit that you’re currently using
Using HDFC credit cards doesn’t automatically lower your credit score. What matters most is your credit utilization ratio, which is how much of your credit limit you use.
Try to keep usage below 30 percent of your limit. So if your limit is ₹1 lakh, keep your balance under ₹30,000 before the billing cycle ends. High usage can hurt your score, while low usage helps keep it healthy.
Limit usage is a big factor, but on-time payments and credit history also matter. Manage these well, and your score should stay good.