Multiple Credit Cards? Your CIBIL Score Depends on This Key Ratio!
Money
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News18•20-01-2026, 13:42
Multiple Credit Cards? Your CIBIL Score Depends on This Key Ratio!
- •Having multiple credit cards can increase your total credit limit, which is beneficial for your CIBIL score.
- •The 'credit utilization ratio' is crucial: keeping it below 30% is ideal for CIBIL score improvement.
- •A low utilization ratio signals financial discipline to banks and credit bureaus, even with high credit availability.
- •Using multiple cards responsibly, without maxing them out or missing payments, can boost your CIBIL score.
- •Disadvantages arise if you overspend, miss payments, or frequently apply for new cards, leading to hard inquiries.
Why It Matters: Manage multiple credit cards wisely by maintaining a low credit utilization ratio to boost your CIBIL score.
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