More usage of credit card can increase the CIBIL Score?

POSTED BY Rajasekhar N ON August 12, 2013 11:23 pm COMMENTS (2)


                                I Use 80-90% of my credit card limit monthly with regular repayments and my friend uses 10-20% only on his credit limt. Our both credit card limit is same. Here my querry is – will my CIBIL score increase much faster than my friend ? Bcz my friend doesn’t use the card much better than me. Please clarify.




2 replies on this article “More usage of credit card can increase the CIBIL Score?”

  1. Yes, as already explained by credexpert . If I am a credit card company , for me you have more potential to reach the limit and may be default later (only those people default who use if fully , right 🙂 )

    So , better do either of these

    1. Check if you can reduce your consumption

    2. Or better ask your credit card company to increase your limit . Tell them your salary has gone up or some expenses you are going to do regularly on card from now on .


  2. Credexpert says:

    Dear Rajasekhar,

    Utilizing up to 100% of the card limit has a negative impact on credit score. Although, you have been repaying your dues on time, we would suggest that you refrain from utilizing up to 100% of your credit card limit.

    The recommended utilization limit on a credit card should be up to 40%. Whereas your friend is playing safe by utilizing less on his credit card limit.

    The difference in the increase in the credit score between your friend and you, would be different since credit score is derived based on the length of credit history, utilization limit, outstanding balance, balance between secured & unsecured accounts, no. of loans/credit cards, no. of enquiries etc.

    The said credit card would not be the only factor resulting in the increase or decrease of credit score.


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