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    It is the ratio of a borrower's actual debt to his or her potential debt. For example, if a customer has ?250,000 limit as secu
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    What is the lender's foremost concern while lending money? It is whether his money will come back to him or not. And this he judges by a number of factors. Availability of security can to a great extent assure the lender. But, what if you can't produce any asset as collateral? On what basis will the lender grant you the loan? Credit ratio is one important parameter that gives the lender an idea of your creditworthiness. Credit utilisation ratio is another factor that plays a vital role when it comes to the lender's decision.

    What is Credit Utilisation Ratio?
    It is the ratio of a borrower's actual debt to his or her potential debt. For example, if a customer has ?250,000 limit as secur

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    r of factors. Availability of security can to a great extent assure the lender. But, what if you can't produce any asset as collateral? On what basis will the lender grant you the loan? Credit ratio is one important parameter that gives the lender an idea of your creditworthiness. Credit utilisation ratio is another factor that plays a vital role when it comes to the lender's decision.

    What is Credit Utilisation Ratio?
    It is the ratio of a borrower's actual debt to his or her potential debt. For example, if a customer has ?250,000 limit as secu

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    t basis will the lender grant you the loan? Credit ratio is one important parameter that gives the lender an idea of your creditworthiness. Credit utilisation ratio is another factor that plays a vital role when it comes to the lender's decision.

    What is Credit Utilisation Ratio?
    It is the ratio of a borrower's actual debt to his or her potential debt. For example, if a customer has ?250,000 limit as secu

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    edit utilisation ratio is another factor that plays a vital role when it comes to the lender's decision.

    What is Credit Utilisation Ratio?
    It is the ratio of a borrower's actual debt to his or her potential debt. For example, if a customer has ?250,000 limit as secu

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    atio?
    It is the ratio of a borrower's actual debt to his or her potential debt. For example, if a customer has ?250,000 limit as secured loans and he has taken a loan of ?50,000 on his home equity, the credit utilisation ratio comes out to be 50%. As per the financial experts, this ratio should not cross 50%. As the part of your credit score, credit utilisation ratio is given 30% weightage.

    Unsecured Personal Loans are high risk ventures for the lenders. A high credit utilisation ratio would amount for greater risk for the lender. It indicates that the borrower has already taken much loan and therefore his debts are mounting high. This may also mean less disposable income of the b

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