<\/span><\/h2>\n\n\n\nIt is the percentage of your total available credit limit that you are currently using across all credit cards and credit lines. It helps lenders understand how dependent you are on borrowed credit. <\/p>\n\n\n\n
The formula for calculating CUR is: <\/p>\n\n\n\n
CUR = (Total Outstanding Balance \u00f7 Total Credit Limit) \u00d7 100<\/strong> <\/p>\n\n\n\nFor example, if your total outstanding credit card balance is \u20b930,000 and your combined credit limit across all cards is \u20b91,50,000, your CUR would be: <\/p>\n\n\n\n
(\u20b930,000 \u00f7 \u20b91,50,000) \u00d7 100 = 20%<\/strong> <\/p>\n\n\n\nA lower utilization ratio generally indicates responsible credit management and can positively influence your credit score. <\/p>\n\n\n\n
Many borrowers ask what is a credit utilization ratio; it is the percentage of your available credit limit that is currently being used across all credit cards and revolving credit accounts. <\/p>\n\n\n\n
If you are wondering what is a credit utilization rate, it is simply another term used to describe the proportion of available credit that has been utilized at a given point in time. <\/p>\n\n\n\n