How much credit card limit should I use?

You should ideally use less than 30 percent of your total credit card limit to maintain a healthy credit score. This is known as your Credit Utilization Ratio. For example, if your total limit is 1,00,000, you should aim to keep your monthly balance below 30,000. Maintaining a low ratio demonstrates financial discipline to credit bureaus and lenders. Consistently exceeding this 30 percent threshold can negatively impact your creditworthiness and may reduce your chances of getting loans or new credit cards in the future.