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Stay well clear of your credit limit

Stay well clear of your credit limit

Thursday, March 2, 2017, 10:57 AM

Credit limit is the maximum amount you are allowed to spend each month, using your credit card. You have a credit limit of INR 1 Lakh a month. You spend INR 80,000 a month, swiping your credit card. Your credit utilization is 80%. If your credit utilization is high, banks view you as credit hungry. This affects your credit score.
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