New Delhi, Feb. 3 -- If you have recently started using acredit card, it is recommended to avoid exhausting its entire credit limit. Ideally, a card user is expected to keep thecredit utilisation under 30 percent of the overall limit. For example, when the credit limit of your credit card is Rs.10 lakh, the credit utilisation ratio should remain under Rs.3 lakh.

Although you are completely free to exhaust the card, it is not advisable to do so to optimise yourcredit score.

The credit utilisation ratio is the percentage of your total available credit that you are currently using. It is an important metric of yourcredit score. Smaller the ratio, higher the credit score and higher the ratio, smaller the score.

In other words, credit score...