Most credit cards offer two types of loan options to card holders
Loan Against the available Credit Card Limit and Loan Above Credit Card Limit.
Let’s assume a card holder has a card with 1 Lakh limit and is being offered loan under both cases.
In case the user avails option 1 and takes a loan of 1 Lakh let’s assume for 12 months. So does that mean his credit utilization for the card is 100%? That means cibil will take it as a negative even with timely repayment?
In case the user avails option 2 and since it’s a pre approved sort of offer does that show up as another loan in cibil or is combined under the CC account?
From a cibil point of view which of the options are better?
Loan Against the available Credit Card Limit and Loan Above Credit Card Limit.
Let’s assume a card holder has a card with 1 Lakh limit and is being offered loan under both cases.
In case the user avails option 1 and takes a loan of 1 Lakh let’s assume for 12 months. So does that mean his credit utilization for the card is 100%? That means cibil will take it as a negative even with timely repayment?
In case the user avails option 2 and since it’s a pre approved sort of offer does that show up as another loan in cibil or is combined under the CC account?
From a cibil point of view which of the options are better?
