What is the 30 percent rule for credit cards?

Okay, so the 30% rule for credit cards… ugh, where do I even begin? It’s one of those things that sounds simple, but in reality? A constant source of low-key anxiety!

Basically, the idea is that you shouldn’t use more than 30% of your available credit on any given card. So, let’s say your credit limit is, oh, I don’t know, ₹20,000 (like maybe it actually is for someone, ahem!). That means, according to this “rule,” you should really try to keep your balance below ₹6,000.

Why? Well, supposedly, it’s all about your credit score. Credit bureaus see high utilization – meaning you’re using a big chunk of your available credit – as a red flag. It makes you look like you’re struggling to manage your finances, or maybe you’re just too reliant on credit, you know? And nobody wants to look like that.

But honestly? It’s easier said than done. Like, sometimes you just need to buy something, right? Maybe your car breaks down (ugh, been there!), or you have an unexpected medical bill (double ugh!). And suddenly, you’re creeping way past that 30% limit. I mean, it feels like I’m constantly playing this mental game of “Can I afford this? Will it push me over the edge?” It’s exhausting!

I remember one time, I really wanted these concert tickets, right? They were a bit pricey, but it was my favorite band! I knew buying them would put me a little over that 30% threshold, but I justified it to myself – I deserved a treat! And, you know what? It was a fantastic concert, but I definitely felt the guilt of that higher balance hanging over me for the next few weeks. Was it worth it? Maybe. Maybe not. It’s a constant balancing act, isn’t it?