Does using a credit card for rent impact your CIBIL rating?
Settling your rent via credit card has the potential to drag down your CIBIL score if it pushes up your credit utilisation ratio. As an illustration, if you have a ₹1 lakh limit and use ₹30,000 for rent, you have already consumed 30% of your available credit before making any other purchases. A diminished CIBIL score can create hurdles when you try to secure loans or additional credit later on. Financial advisors suggest maintaining your credit usage under 30% and ensuring you clear your balances completely.
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