How is Credit utilization calculated?

[Mritunjay]

I have two credit cards.
Axis Flipkart with 50K limit and good reward rate.
HDFC Millenia with 150K limit but worse reward rate.

I use mostly for offline spends so reward rate is 1.5% and 1.0% respectively for me.

If I max out Axis card(80% or 40K) and dont use HDFC card, will it affect my cibil score?

How is credit utilization reported?
40K/(50K+150K) ?
or 40K/50K and 0/150K separately?

 

[TheTrickySid]

I have two credit cards.
Axis Flipkart with 50K limit and good reward rate.
HDFC Millenia with 150K limit but worse reward rate.

I use mostly for offline spends so reward rate is 1.5% and 1.0% respectively for me.

If I max out Axis card(80% or 40K) and dont use HDFC card, will it affect my cibil score?

How is credit utilization reported?
40K/(50K+150K) ?
or 40K/50K and 0/150K separately?

It is reported as a combined utilisation

 

[007]

I have two credit cards.
Axis Flipkart with 50K limit and good reward rate.
HDFC Millenia with 150K limit but worse reward rate.

I use mostly for offline spends so reward rate is 1.5% and 1.0% respectively for me.

If I max out Axis card(80% or 40K) and dont use HDFC card, will it affect my cibil score?

How is credit utilization reported?
40K/(50K+150K) ?
or 40K/50K and 0/150K separately?

Credit utilization is calculated taking into the account the combined limit of all cards. But do check the highest limit reported for your HDFC card as they report max utilized amount not the actual credit limit. So, 50K (Axis) + Max Utilized limit reported in CIBIL (HDFC) will be your available credit limit. Spend 20-30% of this limit to keep the utilization ratio good!

 

[Mritunjay]

It is reported as a combined utilisation

Thanks for the clarification.

 

[Mritunjay]

Credit utilization is calculated taking into the account the combined limit of all cards. But do check the highest limit reported for your HDFC card as they report max utilized amount not the actual credit limit. So, 50K (Axis) + Max Utilized limit reported in CIBIL (HDFC) will be your available credit limit. Spend 20-30% of this limit to keep the utilization ratio good!

Okay, so HDFC will report utilized amount as credit limit.This does not sounds fair. Will keep it in mind.
Really appreciate your reply.

 

[Proffesor]

Okay, so HDFC will report utilized amount as credit limit.This does not sounds fair. Will keep it in mind.
Really appreciate your reply.

No they will report addition of all the original credit limits as credit limit.