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Three Credit Cards With Rs 5 Lakh Total Limit: Does More Available Credit Help Your Credit Score?
NDTV Profit 2 hrs ago·13 Sept 2026, 7:14 am
Having multiple credit cards with a combined limit of Rs 5 lakh can be a double-edged sword for your credit score. While a higher total limit might seem beneficial, it is the credit utilization ratio (CUR) that truly matters. This ratio is calculated by dividing your total outstanding balance by your total available credit. Lenders generally prefer a CUR below 30% to see that you can manage debt responsibly without maxing out your cards.
For investors, this metric is a key indicator of financial health. A lower CUR suggests prudent money management, which can lead to a better credit score. A high score, in turn, can make you eligible for lower interest rates on loans and credit cards. To protect your score, focus on paying off your outstanding balances rather than just increasing your credit limits. Keep your spending well below the 30% threshold to maintain a strong credit profile.
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