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18-Jun-2020 12:45

Credit utilisation is the ratio of outstanding dues to the credit card limit.

For example, if the outstanding amount due on your credit card — with a limit of ₹40,000 — for May is ₹20,000, your credit utilisation for the month is 50 per cent.

The point to note here is that this interest will be charged from the date of transaction/date of generation of statement, both of which are prior to the due date.Using a credit card for your purchases is exciting, thanks to the interest-free credit of up to 50 days, ease of doing transactions, reward points, discounts and cash-back offers.



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