There are many factors that determine your credit score and your credit utilisation ratio is one of them. Credit utilisation ratio is the ratio of your credit balances used with reference to the total credit limit available with you have. Therefore, the lower is your ratio the better is your credit score. If you have a higher credit utilisation ratio it indicates that you are credit hungry and facing a financial crunch. A high ratio also indicates that you are dependent upon credit which lowers your credit score. You can lower your credit utilisation ratio by using multiple cards and maintaining a low ratio on all of them. You can further ask for an increase in your credit limit. To further improve your credit score, pay all your EMIs and bills on time and keep the credit balances within 30% of the total credit limit.