Multiple Credit Accounts for Credit Cards Having Shared / Merged Limit Leading to Over Leverage

[✪ D&C Cards Connoisseur 💳]

Hello folks, I have observed for few banks like HDFC, AXIS, that even if we hold multiple Credit Cards having shared credit limits, still these Credit Cards are displayed as Separate Credit Accounts in Cibil with separate limits.
For eg: In case of Axis, I hold FK Axis, Neo & Rewards, all are having shared & merged limit of 1.5L . If I use any of these card, the total limit gets decreased, say I have used 50K in Neo, then available limit gets decreased to 1.5L for all 3 cards. In case of HDFC, I have Millennia as Primary and Swiggy as Floater with shared limit of 2L and same scenario of CL decrease for HDFC similar to Axis.
Now the point is, all those cards are reported separately in Cibil with their limits. If that is the case, then I should get total 4.5L limit or separate 1.5L limits for each card of Axis which should not decrease when I use one card. Similarly for HDFC, I should get either 4L limit in total or separate 2L in each card which should not decrease when I use one card.

In the era of rejection of credit card applications like SBI, AU or Canara for over-leverage stating high credit limit, isn't this a crime where banks are reporting 3X or 2X limits of cards but in actual we are getting only 1X limit?? Shall we start raising grievances to banks and eventually to RBIO either for removing multiple credit account entries from Cibil or providing us with actual limits as mentioned in Cibil?

@TechnoFino @SSV @Anindya98 @kuchbhi @pinki @BVC @HumorSimpson @SJM & all other fellow TFians, what's your take on this issue?

 

[SSV]

Shall we start raising grievances to banks and eventually to RBIO either for removing multiple credit account entries from Cibil or providing us with actual limits as mentioned in Cibil?

The answer to your question is :
YES , a resounding YES

But
I don't have personally time to do this..

 

[Anindya98]

Shall we start raising grievances to banks and eventually to RBIO either for removing multiple credit account entries from Cibil or providing us with actual limits as mentioned in Cibil?

Same thoughts as @SSV. One or two complaints won't change anything. We need many people raising the same issue at the same time. In my case, I have 3 Axis cards, and each reports a 2.1L limit every month.

 

[dungeonMaster]

Agree we can time the complain and against multiple banks together, only then this will be brought to notice.
Tweet this as well to get some traction and support from online community as well.

 

[imrahul]

Banks need to report a single account if there are mutliple credits cards with shared limit
I think we should ask banks first to implement this and if they dont comply, we should even ask the RBI ombudsman to step in and ask banks to comply
But many people should complain at once so that they come to know the power of credit card community

 

[komal]

Why we need to complain , it helps in building credit score .
It's beneficial to us only .

Eg :
Axis neo - 50k limit
Axis myzone - 50k limit. (Both merged)

We use say neo for 2000 rs then limit overall decrease to 48000
But , in cibil neo account will show 2000 used
and myzone will show 0.

 

[neo.puneet]

this is a big issue but banks don't care much, i had 3 axis cards with 15 lac limit so it was 45 lacs for axis only, it sucks

 

[✪ D&C Cards Connoisseur 💳]

People are fighting to get out of over-leverage issue and alas none has time to drop a single mail. Anyways, I have already called Axis CC and as expected didn't got satisfactory response. Hence I will mail to Axis PNO and will start by doing my part. Others can follow if they found some time.
And tweets from @TechnoFino will have more mass impact than me or some one else here, if feasible.

 

[hellowo₹ld]

People are fighting to get out of over-leverage issue and alas none has time to drop a single mail. Anyways, I have already called Axis CC and as expected didn't got satisfactory response. Hence I will mail to Axis PNO and will start by doing my part. Others can follow if they found some time.
And tweets from @TechnoFino will have more mass impact than me or some one else here, if feasible.

in 2021 when i complained and fought for 3 months they only suggested..

1. keep only 1 credit card for this requirement. multiple cards with same limit helps ur puchases easy with max limit and at the same time couldn't show 1/3rd limit to cibil because that card can be used fully.

fluctuating limits every month affect cibil score.

2. high limit helps to maintain low utilization, so 5L user maynot see this much but 15K user can benefit with this.

3. Bank provided to you ex: 6L ready to use limit, but unlike other loans here u can use that limit to multiple card variants based on ur convenience to spend. And when we have to report that to cibil it should be with assigned limit for that card.

etc.

I kept only 1 card from most of the banks from that times unless absolutely necessary.

I like ICICI where they keep same account for gemstone cards but sane bank report other accounts for cobrand cards.

I dont like IndusInd but they have this Split limit option with their high limits.

I like SBICards but their split limit on cards with that low limit frustrating.

1. how do u propose banks should report to cibil?

.. somehow this answer not valid for both high limit and low limit users (one has to suffer with the suggestion).

 

[✪ D&C Cards Connoisseur 💳]

in 2021 when i complained and fought for 3 months they only suggested..

1. keep only 1 credit card for this requirement. multiple cards with same limit helps ur puchases easy with max limit and at the same time couldn't show 1/3rd limit to cibil because that card can be used fully.

fluctuating limits every month affect cibil score.

2. high limit helps to maintain low utilization, so 5L user maynot see this much but 15K user can benefit with this.

3. Bank provided to you ex: 6L ready to use limit, but unlike other loans here u can use that limit to multiple card variants based on ur convenience to spend. And when we have to report that to cibil it should be with assigned limit for that card.

etc.

I kept only 1 card from most of the banks from that times unless absolutely necessary.

I like ICICI where they keep same account for gemstone cards but sane bank report other accounts for cobrand cards.

I dont like IndusInd but they have this Split limit option with their high limits.

I like SBICards but their split limit on cards with that low limit frustrating.

1. how do u propose banks should report to cibil?

.. somehow this answer not valid for both high limit and low limit users (one has to suffer with the suggestion).

Well, say in case of me if I have 4.5L in Cibil (3*1.5) and I have same 4.5L in actual (total or 3*1.5), then also credit utilization will be low if I use say 50K from one card. But if I have high limit in Cibil which is X times of actual, then I'm clearly overleveraged without getting the essence of that much high limit in actual. Please correct me if I'm missing something or my understanding is wrong.

 

[hellowo₹ld]

Well, say in case of me if I have 4.5L in Cibil (3*1.5) and I have same 4.5L in actual (total or 3*1.5), then also credit utilization will be low if I use say 50K from one card. But if I have high limit in Cibil which is X times of actual, then I'm clearly overleveraged without getting the essence of that much high limit in actual. Please correct me if I'm missing something or my understanding is wrong.

as said, u have to consider multiple people here.. in ur case, it maybe not over utilization but what about (3*15k) people.

not all of them start their limit to 1.5L.

also, credit utilization is considered by cibil only if it happens multiple times, if its 2 or 3 times in a year, score wont fluctuate much.

its just an excuse created by bank (which obviously wont report same limit to multiple accounts. e.g: sbi, hsbc)

in their pov its overleveraged but this issue wont observed till now to axis, icici, hdfc etc. because they know how to deal.

again, I'm not supporting banks here, ideally they shouldnt report like that but same time I don't have answer to their query either.