Impact of limit increase in credit score or cibil score

[hirenrathod39]

There is an offer on ICICI credit card which will increse my credit limit for that specific card and all card under the ICICI umbrella.

When I update the credit card limit and it gets processed, does it impact negatively on my credit score or positively?

I'm planning to take a home loan in this financial year, so I want to take informed decision by increasing the credit card limit or not.

 

[Gaara]

When I update the credit card limit and it gets processed, does it impact negatively on my credit score or positively?

The effect on your credit score is positive as your limit increases, resulting in a lower utilization ratio.
In recent discussions, someone mentioned that their SBI card was rejected, with the reason cited as ‘over-leverage.’ This occurs when your credits overall limits exceed your income. It’s worth noting that this issue may be specific to credit cards, as they are unsecured, whereas home loans are secured.

 

[Vasuki]

There is an offer on ICICI credit card which will increse my credit limit for that specific card and all card under the ICICI umbrella.

When I update the credit card limit and it gets processed, does it impact negatively on my credit score or positively?

I'm planning to take a home loan in this financial year, so I want to take informed decision by increasing the credit card limit or not.

You should give context how much l.e
How much cc total limit in cibil vs
Income reported..etc etc


L.e is positive only because bank themselves giving you ..
Helps lower cur

 

[Trust Me]

In recent discussions, someone mentioned that their SBI card was rejected, with the reason cited as ‘over-leverage.’ This occurs when your credits overall limits exceed your income.

You are talking about the annual income, not monthly, right?

Still, for many people holding multiple cards the overall CL is likely to exceed not only their monthly income, but even their annual income. That means they are in a position to run up charges in a month that they can't possibly pay off even in a year (usurious credit costs can make things much worse in reality)!

Too many people are allowed limits far exceeding their monthly income!
.

 

[hirenrathod39]

You should give context how much l.e
How much cc total limit in cibil vs
Income reported..etc etc


L.e is positive only because bank themselves giving you ..
Helps lower cur

Approx 12 Credit cards total

Limit increase by 1 lakh Rs (which actually is not required, as I'm not going to utilise the extra limit available)

Utlization ratio is not very high across all cards - less than 1-2%

Total limit across all cards are almost 1.5 times than annual income

 

[Vasuki]

Approx 12 Credit cards total

Limit increase by 1 lakh Rs (which actually is not required, as I'm not going to utilise the extra limit available)

Utlization ratio is not very high across all cards - less than 1-2%

Total limit across all cards are almost 1.5 times than annual income

I have answered this kinda question in a different thread
Short answer is
Unless your bank ( giving home loan ) say sir you are over leveraged ..close some cc
Till then u don't have to worry about a thing .

 

[Gaara]

You are talking about the annual income, not monthly, right?

Yes, annually. And these sorts of things are particularly common with PSU banks.

 

[sidp]

There is an offer on ICICI credit card which will increse my credit limit for that specific card and all card under the ICICI umbrella.

When I update the credit card limit and it gets processed, does it impact negatively on my credit score or positively?

I'm planning to take a home loan in this financial year, so I want to take informed decision by increasing the credit card limit or not.

Total reported unsecured debt exposure ( all cc cl+emi+loan+ od except hl and car loan) till 2-3x net annual income is okay.

Problem is this is reported cl. Many issuers like axis/hdfc don't report cl as shared. So if you have 3 cc with shared limit, your reported cl will be 3x actual cl.

 

[Gaara]

Total reported unsecured debt exposure ( all cc cl+emi+loan+ od except hl and car loan) till 2-3x net annual income is okay.

Problem is this is reported cl. Many issuers like axis/hdfc don't report cl as shared. So if you have 3 cc with shared limit, your reported cl will be 3x actual cl.

Same with ICICI, it is not showing as combined limit.

 

[sidp]

Same with ICICI, it is not showing as combined limit.

Icici shows 1 shared account for all gemstone card. So if you have coral+ rubyx dual+ sapphiro dual+ emeralde It will show 1x cl not 6x.
Cobranded cards have separate account.