Credit utilization ratio has significant impact while assessing the credit risk of a loan application. If a customer has availed a revolving credit facility like Credit card or overdraft and has high credit utilization ratio then the customer is risky and might be having credit crunch or fund issues. But since the Loan assessment includes an holistic view of multiple parameters as well, if high credit utilization ratio is coupled with good credit vintage and with good repayment, then the customer might be a financially prudent one who knows how to rotate money. In such scenarios these customer are the best customer to lend the money with low risk.