How many active credit cards do you have? Flash your portfolio.

[helloworld]

I dont tend to agree on this. One point being, how will bank know my "actual income".
Also untill available debit is not utilized, how is it a risk. If thats the case, then I feel the whole industry of distributing the card ( have so many calls that we all get for this) will fall down.
On your point about EMI, this every loan provider anyways checks. At max the total EMI you can service they take as 50% of take home ( if agressive) else its 40%.

Any current EMI reduces the new EMI you can take.

I will believe someone with multiple cards and a high total credit limit will not have any impact on their Cibil score, till they have low credit utilization, timely payment( no default ever).

Note: I even checked with some friends in finance and they too concur with me that available credit limit to income ratio isn't of much use

Regards,
Balpreet Singh

Agree. when banks ask for "actual income" then some of these scenarios observed.

As mentioned,

You'll mostly get to know about its impact when you apply for loan especially unsecured one with high amount or low interest or less tenure.

Otherwise, all good.

 

[rahulsethi]

Yeah, after all these hurdles, they better make it LTF. 🤣

Well tbh just costed me one visit to the branch, my savings bank branch was just adjoining so no time lost there as well. All process was done within half an hour. Ofcourse your experience might vary.

Hi,
can you kindly share tips on how do you manage multiple credit cards and which date do you keep as bill generation date?

Also, RBL Safari LTF how did you manage, was it RBL Zomato LTF - Shoprite LTF - RBL Safari LTF?

thanks.

Exactly the same route 🙌

 

[RAMESH BABU N]

Personal experience but I heard for some people who has significant income or other benefitting factors may not affect this:

Cibil score has various parameters and no way to be sure that 'this causes reduction in score like that.. its all based on assumptions (atleast if I told)'.

You'll mostly get to know about its impact when you apply for loan especially unsecured one with high amount or low interest or less tenure.

Ex: If you're a banker who approves loan to a customer, what would you do below person..?

Lets say Person A has 1L per month salary, and
total available credit limit is 10L (which actually until utilized won't become a debt, but it can be used any time means ready for spend, or withdraw, if we want, any day)

When applied for 10L loan, with 12% interest for 3 years = 33,214 EMI = 33% // which is well within % salary limit to sanction as EMI.

But this % limit banks assuming after including all your spends like other EMIs + loans + Credit Card utilization pattern etc. total must be around this because banks usually assumes 40% for mandatory expenses like rent, utilities.

This person bank statement showing, every month paying 15k for rent, 5-10k general expenses, 20-25k credit card expenses or bills (so around every month spending 40k-50k).

Now,

will you approve the loan limit with requeted tenure?
or hoping person spends with EMI increases tight budget may result more credit usage, so hoping for worst
- reduce the limit and/or increase the tenure..?
or looking it as opportunity
- increase interest rate and/or increase the tenure..?

Again, just a note these all based on experience as customer (I never worked as a banker) and it can vary from person to person. But understood that high credit limit is always sees as leverage because you can use that at any time.

Another example (as per me):

1L salary with 3L combined limit = risk 3x (if anything goes wrong)
1L salary with 10L combined limit = risk 10x
1L salary with 1Cr combined limit = risk 100x

Cibil score may not change or decrease but there is a reason banks ask for statemnt sometimes before issuing loan, so based on above assumptions.

Now, if someone comes and tell that I had loan offer with 8% without any docs on my ICICI card - assume, there are good cases and we're talking about bad ones.

Short term lending - either secured or unsecured - is resorted to by banks - if there is a mis-match of liquid funds. Demand n supply mismatch - unexpected n unplanned credits into bank. Banks can't keep idle such short term funds n pay interest to depositors. So, short term lending targets are fixed n aggressively marketed.

On the other hand, long term lending - like housing loans, education loans, mortgage loans, huge capital loans,.... are generally not marketed that aggressively.

Totally avoiding the mismatch is impossible. The Treasury n funds management departments do a full time number crunching job - to reduce n minimize that mismatch.

Even experienced Bankers take 2-3 yrs to have a good grasp in this field. And, it takes not less than 10-15 yrs to be stamped as an expert in TM/FM.

 

[cardy]

Can you share your experience how you achieved four cards in HDFC?

We are still waiting for your reply here @rahulsethi

 

[rahulsethi]

We are still waiting for your reply here @rahulsethi

Well I used to have Regalia LTF card, upgraded that to DCB LTF through the now discontinued Alumni offer. Rest three are floater cards first got the Tata neu infinity Rupay card LTF from Tata Neu app, then got the Swiggy card through the Swiggy app. Finally got the Marriot card which was rejected upon application saying I hold multiple HDFC cards already and shall consider a limit upgrade instead, I wrote an email to HDFC customer care to issue it as a floater card, was approved the very next day.

 

[cardio_guy]

Personal experience but I heard for some people who has significant income or other benefitting factors may not affect this:

Cibil score has various parameters and no way to be sure that 'this causes reduction in score like that.. its all based on assumptions (atleast if I told)'.

You'll mostly get to know about its impact when you apply for loan especially unsecured one with high amount or low interest or less tenure.

Ex: If you're a banker who approves loan to a customer, what would you do below person..?

Lets say Person A has 1L per month salary, and
total available credit limit is 10L (which actually until utilized won't become a debt, but it can be used any time means ready for spend, or withdraw, if we want, any day)

When applied for 10L loan, with 12% interest for 3 years = 33,214 EMI = 33% // which is well within % salary limit to sanction as EMI.

But this % limit banks assuming after including all your spends like other EMIs + loans + Credit Card utilization pattern etc. total must be around this because banks usually assumes 40% for mandatory expenses like rent, utilities.

This person bank statement showing, every month paying 15k for rent, 5-10k general expenses, 20-25k credit card expenses or bills (so around every month spending 40k-50k).

Now,

will you approve the loan limit with requeted tenure?
or hoping person spends with EMI increases tight budget may result more credit usage, so hoping for worst
- reduce the limit and/or increase the tenure..?
or looking it as opportunity
- increase interest rate and/or increase the tenure..?

Again, just a note these all based on experience as customer (I never worked as a banker) and it can vary from person to person. But understood that high credit limit is always sees as leverage because you can use that at any time.

Another example (as per me):

1L salary with 3L combined limit = risk 3x (if anything goes wrong)
1L salary with 10L combined limit = risk 10x
1L salary with 1Cr combined limit = risk 100x

Cibil score may not change or decrease but there is a reason banks ask for statemnt sometimes before issuing loan, so based on above assumptions.

Now, if someone comes and tell that I had loan offer with 8% without any docs on my ICICI card - assume, there are good cases and we're talking about bad ones.

Is it not similar to/opposite of the pre approved loans or overdrafts that people get? I get many calls saying od facility is pre-approved for 50L. Just take and keep, you won't pay any interest untill you withdraw from it.

Banks love to give these loans, overdrafts and credits because they hope someone will not pay on time and someone will default. That's where they get profit.

Similarly even if overdraft or higher credit limit is approved, it is not a risk untill people use it. And when they use it, it's sweet for banks.

That's why banks like to give loan to those who might default more

 

[image]

Is it a good thing to flaunt

or should I delete it?

Also, it tells everyone how old I am. 🫣

 

[aayusharyan]

Is it a good thing to flaunt?

326 months.... Daaaamn

 

[aayusharyan]

Is it a good thing to flaunt

or should I delete it?

Also, it tells everyone how old I am. 🫣

But only 633 payments over a period of 27-28 years.... Not much into borrowing?

 

[image]

326 months.... Daaaamn

I still have that credit card as a memory.

 

[image]

But only 633 payments over a period of 27-28 years.... Not much into borrowing?

There used be just one CC in initial years, then 2-3 CCs. Multiple cards only since last 5-6 years.

Otherwise also not much into borrowing but still pay 7-8 CCs every month..

 

[Pawan_KS]

I Have following CC, CIBIL 809, 21 queries in last 3years:

HDFC Infinia Metal FYF
Axis Magnus Metal (will close at the time of renewal)
Axis Atlas LTF
ICICI Amazon pay LTF
ICICI Coral LTF
ICICI Sapphiro dual card LTF (Master Card + Amex)
Yes First exclusive LTF
Indusind Legend LTF
HDFC neu Rupay LTF

 

[raghu.rokda]

I Have following CC, CIBIL 809, 21 queries in last 3years:

HDFC Infinia Metal FYF
Axis Magnus Metal (will close at the time of renewal)
Axis Atlas LTF
ICICI Amazon pay LTF
ICICI Coral LTF
ICICI Sapphiro dual card LTF (Master Card + Amex)
Yes First exclusive LTF
Indusind Legend LTF
HDFC neu Rupay LTF

How you get HDFC Infinia Metal?

 

[Pawan_KS]

How you get HDFC Infinia Metal?

yes. infinia metal

 

[raghu.rokda]

yes. infinia metal

I ask how you get it ?

 

[imdjay]

yes. infinia metal

@raghu.rokda asked How? Kaise?

 

[sxchzy]

How you get HDFC Infinia Metal?

yes. infinia metal

 

[raghu.rokda]

yes. infinia metal

 

[Pawan_KS]

I ask how you get it ?

sorry i read it wrong.
was holding dcb ltf, CL 7L, was meeting salery criteria but not spend criteria, spend in last 6month was around 6 due to unacceptability issue of diners. raised the issue to my RM. He took approval for spend criteria and applied for upgrade by sending docs to Chennai. after 2 weeks got the card.

 

[raghu.rokda]

sorry i read it wrong.
was holding dcb ltf, CL 7L, was meeting salery criteria but not spend criteria, spend in last 6month was around 6 due to unacceptability issue of diners. raised the issue to my RM. He took approval for spend criteria and applied for upgrade by sending docs to Chennai. after 2 weeks got the card.

So you get infinia metal with 7L limit