Credit Card: How much percent of the limit should be spent? Half the public does not know..

With the increase in the income of people in the country, the number of credit cards has also increased rapidly. As of May 2025, there were 11.11 crore active credit cards in India, while this number was 10.33 crore in May 2024 and only 6.10 crore in January 2021. Experts say that spending more than a limit on a credit card can be harmful to you. Every transaction with a credit card silently affects your credit profile, credit history, and credit score. This credit history is important for taking out a loan or a credit card in the future.

What percentage should be spent?

According to industry experts, if your credit utilization exceeds 50%, then it is a clear alarm bell for lending institutions. This is a sign of your greedy behavior towards credit. All such credit card users may have to face high interest rates. Personal loan applications may also be rejected.

Negative impact on credit score
RBI has made it mandatory for banks and card issuers to update credit reporting every 15 days instead of monthly since the beginning of this year. This strict deadline simply means that any payment behavior is reflected in your credit profile very quickly. Because of this, the impact on the credit score is immediate.

Golden rule of credit card use
It is wise to keep credit use below 30% According to experts, it is wise to keep your credit utilization ratio below 30% to demonstrate responsible credit card use. Pay credit card bills on or before the due date to maintain a good repayment history to keep yourself on the right track.

Avoid accumulating credit card dues. Monitor your credit report regularly for accuracy and timely updates. File a complaint if any discrepancy is seen. Use auto pay or reminders to stay updated on payments and avoid late fees.

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