Low credit utilisation ratio is going more harm than good?

[RockyBond]

As people say to keep credit utilisation ratio below 30% to not look credit hungry. But does very low ratio also have negative impact. Since past year I am paying 99% outstanding before bill generation and keeping 1% credit limit as bill. Say tor 1,80,000 credit card bill is 1000.

Because of that I haven't got any limit Enhancement from any of the major banks. Is that the reason? Are they thinking i am not using existing limit and thus not giving Enhancement?

 

[anirban.choudhury]

As people say to keep credit utilisation ratio below 30% to not look credit hungry. But does very low ratio also have negative impact. Since past year I am paying 99% outstanding before bill generation and keeping 1% credit limit as bill. Say tor 1,80,000 credit card bill is 1000.

Because of that I haven't got any limit Enhancement from any of the major banks. Is that the reason? Are they thinking i am not using existing limit and thus not giving Enhancement?

I don’t think Limit enhancement depends upon your credit utilisation / spends , most of my cards get regular LE with almost 0 spend in last year.

Banks do have a BI team , who analyses your profile based on customer segmentation and life cycle value and then gives limit enhancement to your profile . In case of auto LE, there are no Cibil hits.

This is just from my experience , I may be wrong here

 

[rayhan12]

Even, I am doing the same. Using the cards a lot but paying more than 95 percent before the bill generation and I haven't got much LE in past years.
Yesterday got 15k LE from HDFC and ICICI is stuck at 1.10L.

 

[anirban.choudhury]

Even, I am doing the same. Using the cards a lot but paying more than 95 percent before the bill generation and I haven't got much LE in past years.
Yesterday got 15k LE from HDFC and ICICI is stuck at 1.10L.

I don’t think every cards send their report to Cibil on bill generation date , there are some specific dates where cards reports your data to Cibil , if those dates has more than 30% spend of card limit then it might cause a issue .
I would suggest that at any given time keep 70% or more in your total credit limit across all cards free

 

[rayhan12]

I don’t think every cards send their report to Cibil on bill generation date , there are some specific dates where cards reports your data to Cibil , if those dates has more than 30% spend of card limit then it might cause a issue .
I would suggest that at any given time keep 70% or more in your total credit limit across all cards free

Learned a new thing today.

 

[anirbanm]

As people say to keep credit utilisation ratio below 30% to not look credit hungry. But does very low ratio also have negative impact. Since past year I am paying 99% outstanding before bill generation and keeping 1% credit limit as bill. Say tor 1,80,000 credit card bill is 1000.

Because of that I haven't got any limit Enhancement from any of the major banks. Is that the reason? Are they thinking i am not using existing limit and thus not giving Enhancement?

That's probably not because of low utilisation. Try not to pay anything before due date.

 

[vaibhav111]

Bank Name CIBIL Report Date BOB Month End HDFC Month End ICICI Bill Generation Date SBI Bill Generation Date Onecard Month End Probably Axis Month End Axis Month End Citi Bill Generation Date RBL Month End IDFC Month End SBI Bill Generation Date Amex Bill Generation Date AU no idea can't find

 

[xiddy]

I don’t think Limit enhancement depends upon your credit utilisation / spends , most of my cards get regular LE with almost 0 spend in last year.

Banks do have a BI team , who analyses your profile based on customer segmentation and life cycle value and then gives limit enhancement to your profile . In case of auto LE, there are no Cibil hits.

This is just from my experience , I may be wrong here

I only receive credit limit enhancements on the cards that I don't use 😂

 

[rp0703]

Bank Name CIBIL Report Date BOB Month End HDFC Month End ICICI Bill Generation Date SBI Bill Generation Date Onecard Month End Probably Axis Month End Axis Month End Citi Bill Generation Date RBL Month End IDFC Month End SBI Bill Generation Date Amex Bill Generation Date AU no idea can't find

AU Month end.

 

[xiddy]

I only receive credit limit enhancements on the cards that I don't use 😂

Got 1L LE on Edition Classic yesterday, a card that I haven't touched since its devaluation.