How credit utilisation works for charge cards

[anirban.choudhury]

Good day

Last month I have taken a gold charge card, and Cibil showed 88% usage against my charge card.

I check with Amex , they said I have a shadow limit of about 8 lakhs , still my spend of 22k is showing as 88% utilisation in my Cibil report, somehow they are getting 25k as credit limit.

Anyone faced this issue with their charge cards ??

 

[gurbina]

Good day

Last month I have taken a gold charge card, and Cibil showed 88% usage against my charge card.

I check with Amex , they said I have a shadow limit of about 8 lakhs , still my spend of 22k is showing as 88% utilisation in my Cibil report, somehow they are getting 25k as credit limit.

Anyone faced this issue with their charge cards ??

Charge cards don't report utilization ratio.
Do you only have a single card with ~30k limit? That's would be the "problem"

 

[anirban.choudhury]

Charge cards don't report utilization ratio.
Do you only have a single card with ~30k limit? That's would be the "problem"

Nope
I have 20+ cards , and way more limit

I can particularly see 25k limit on gold card and utilised 22654 , around 88% usage

 

[codenerd]

Nope
I have 20+ cards , and way more limit

I can particularly see 25k limit on gold card and utilised 22654 , around 88% usage

I tried asking AMEX guys multiple times about my shadow limit but they keep saying that they dont have a way for them to calculate the shadow limit.

 

[anirban.choudhury]

I tried asking AMEX guys multiple times about my shadow limit but they keep saying that they dont have a way for them to calculate the shadow limit.

You can simply log in to Amex portal and check yourself

 

[codenerd]

You can simply log in to Amex portal and check yourself

I maybe missing something but I have tried to goto the Check spending power option online and it doesnt work. COuld you please let me know which option to select to check the limit on Gold charge card?

 

[anirban.choudhury]

I maybe missing something but I have tried to goto the Check spending power option online and it doesnt work. COuld you please let me know which option to select to check the limit on Gold charge card?

Yeah
It’s the check spending pier option , you can enter a amount that you intent to transact and check whether it allows that or not

 

[helloworld]

According to CIBIL (focus last line).

 

[anirban.choudhury]

According to CIBIL (focus last line).

This is what my Cibil is showing for my gold charge card
This report is from OneScore app




And this is my overall limit utilisation

 

[anirban.choudhury]

Above shared information from Official CIBIL website (anyone able to see below their credit summary after login).

Do not trust or use these third party apps, so not sure. One way we can confirm with people who having only HDFC or AMEX Charge Card or HDFC/AMEX Charge Card because they only can tell us and so that we can look why CIBIL official website showing that information.

I have Cibil official report as well, which shows the same thing

I have written a mail to Amex , let see what they say.

Also it looks like charge card do send a credit limit to Cibil

 

[gurbina]

This is a surprising thing to see, I think most of us have always had the impression they don't report a limit so it shouldn't count on the utilization ratio. After all it's a "charge card" aka "no limit card"

I've heard that instead of showing the actual CC limit sometimes the highest usage of the credit is what gets reported but I do not recall being this the case for charge cards.

Maybe someone else can clarify it, but as it stands seems like it's gonna be just for informational purposes!

 

[Avishma1]

Charge cards are not 'no limit' cards, they have no pre-set spend limits and the purchasing power adjusts with the use of card, payments and various other factors.

 

[Sanskar]

Good day

Last month I have taken a gold charge card, and Cibil showed 88% usage against my charge card.

I check with Amex , they said I have a shadow limit of about 8 lakhs , still my spend of 22k is showing as 88% utilisation in my Cibil report, somehow they are getting 25k as credit limit.

Anyone faced this issue with their charge cards ??

What I understand and what I have experienced is as you use card, your credit Limit will increase in CIBIL Report
For example next Month you spend 5L you will have Credit Limit on CIBIL Report 5L but Tricky part is Next to Next Month if you spend only 10K so still Your Limit on CIBIL is 5L.

Note
Please Check your self and then make any Conclusion.
And please inform me as well if you find out anything different.
I am open to hear your experience.

 

[Bodhi]

According to CIBIL (focus last line).

Thank you for this information @helloworld

What is the source, please?

Thank you

 

[Chupaxabra]

Again confirmed with actual user data.

This person has only 2 cards:
- OneCard with limit 20,000
- HDFC where limit not showed in CIBIL = -

Current Balance OneCard = 0
Current Balance HDFC = 602 and
HDFC Highest reported = 1462 (if someone need it).

Utilization = 0% for the past 3 months where this person used only HDFC and not 1 rupee in OneCard.

So, as per CIBIL note, they're not considering non-reported accounts in Credit utilization.

If they consider, one month it supposed to be 25%, or here in this case it supposed to be 3% but all these months its still 0%. Even if they considered high utilization amount, in that case it should be 41% but still they mentioned 0% only.

So, I believe CIBIL official website information and rely on if they don't report a limit so it shouldn't count on the utilization ratio.

Thanks for confirming. This is exactly what I had speculated:

Post in thread 'HDFC not reporting credit limit to CIBIL' https://www.technofino.in/community...orting-credit-limit-to-cibil.1807/post-126136

 

[Random123]

Thanks for the thread. Actually I am seeing 100% usage due to total credit limit being reported as 0. This is the first statement. Overall utilisation ratio is fine but not sure if this will have impact.
Can anyone please share their experience ? Thanks

 

[Random123]

check official CIBIL website, and let us know usage %.

Sure just generated report. It doesn't show percentage but credit limit is shown as -

 

[Random123]

https://www.technofino.in/community...ation-works-for-charge-cards.7353/post-117901

Thanks, so Amex isn't reporting total credit for charge card right ? But I see others have atleast 25K reported in the total credit limit !

Basically wanted to do a transaction of 2.5L on this card but after reading this dropped the plan since was not sure of utilisation ratio. Please share your experience with cibil for high statement / high value transaction on amex charge cards.

 

[helloworld]

Thanks, so Amex isn't reporting total credit for charge card right ? But I see others have atleast 25K reported in the total credit limit !

Basically wanted to do a transaction of 2.5L on this card but after reading this dropped the plan since was not sure of utilisation ratio. Please share your experience with cibil for high statement / high value transaction on amex charge cards.

Some 'X' developer created an app called 'ABC' which provides free credit score without asking anything* from customer. Now, customer thought and believed that and Signup that app. *T&C apply.

Now, instead of showing basic report to make it as Unique that 'X' developer created a beautiful UI. Upon 'n' number of tries realized sometimes for some credit products not reported any value in CIBIL.

Now, 'X' developer has two ideas. 1: Ignore that and consider other credit products which messes up the UI when some customers don't have credit limit. So, 2: Put default 25K and consider that value along with others, which works fine for that UI. Atleast that 'ABC' thought since customers not paying anything for this beautiful UI, they won't mind about this.

Problem is: Customers seriously considering that.

Note: Just my views based on what CIBIL website showing in their webpage/app. No way to be 100% sure to know whether this unreported credit limit effecting any score computation or not. Based on family account with similar no-limit but high-usage based score above views shared. Again, not 100% sure except family account or my account case (that I can be sure), not others because individual options may vary. Follow at your own risk.