CreditSmart Questions Answered

“I Have 90% Credit Utilization, Should I Apply For A New Card?”

Written by CreditSmart

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Dear CreditSmart,

I’ve a 7 month old sbi credit card with limit credit utilization is 90% since last 3 month i asked for limit increase but they refused. Should i apply for another card?

Mr. Sharma



Greetings Mr. Sharma and thanks so much for your question you asked through our App. OK, we need to talk about your Credit Utilization! 90%?? That’s way too much and it’s no surprise SBI was not willing to increase your limit. The ideal credit utilization is about 20-30% of your credit card limit. Of course in some cases you may run into an issue and need the money, but as a general rule, you should always pay down to 20%-30% of your credit limit whenever possible.

It’s unlikely they will be willing to issue you a credit limit increase at this time, as in their eyes you are looking quite desperate for credit.

As far as your other question, should you apply for another card? The answer – maybe. If your CIBIL score is otherwise decent, there are not blemishes on your report, and you do not currently have any other maxed or highly utilized cards – then you might be OK.

However, this should go without saying, but if SBI is not approving a credit limit increase, then they certainly won’t be willing to issue you a whole new card right now. IF…and I do mean IF you really need the credit right now, it’s in your best interest to apply for a card from a different bank like Standard Chartered or Citibank, or anywhere else really.

Remember your hard inquiry for new credit will remain on your credit report for some time, so do not apply for many cards in a short period of time.

The important thing here is to work on paying down your current SBI card to a more manageable utilization ratio or you might find yourself in a heap of interest debt.

Thank you so much for your question and best of luck to you in your credit! Readers, if you have a question please send it to and we’ll do our best to answer your question as soon as we can!

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