do bank reduce credit limit ??

[basant]

hi,
if bank privides you 5 lakh limit and u use only 5000 per month. would bank reduce your credit limit in future for only using 1% of limit.
anyone got their limit decreased in any bank due to this reason.
also if i dont use card at all. rare use , will it effect limit?

 

[Walter White]

hi,
if bank privides you 5 lakh limit and u use only 5000 per month. would bank reduce your credit limit in future for only using 1% of limit.
anyone got their limit decreased in any bank due to this reason.
also if i dont use card at all. rare use , will it effect limit?

Heard of cases in US that Amex reduces credit limit if card is not being used for a long time.

If you are using it regularly even for small spends, nothing to worry about.

 

[SoggypastA]

Now HDFC BANK reduce limit of my infinia cc

Hdfc bank reduced my infinia credit card limit 1037000 to 757000 with no cash limi(Dear Cardmember,Credit limit on your HDFC Bank card ending has been reduced to 757000 with no cash limit. Detailed email/letter will be sent to you.

www.technofino.in

 

[saucy]

No.
It is better to use your credit limit as little as possible. So if you are using 1% that is better - as your credit utilisation ratio would be less.

The lesser your credit utilisation ratio - higher your credit score will be

 

[Hahahahahahah]

Icici did it during 2020 and in 2022 provided 5x limit increase

 

[basant]

Now HDFC BANK reduce limit of my infinia cc

Hdfc bank reduced my infinia credit card limit 1037000 to 757000 with no cash limi(Dear Cardmember,Credit limit on your HDFC Bank card ending has been reduced to 757000 with no cash limit. Detailed email/letter will be sent to you.

www.technofino.in

i think your usage would be very low

 

[basant]

bank holds that amount for us and we dont use. whats the benefit to bank.

 

[SoggypastA]

i think your usage would be very low

Not my card, I remembered reading it in past so shared here as example thought it seems that thread is dead

 

[RkrRkr is verified member.]

hi,
if bank privides you 5 lakh limit and u use only 5000 per month. would bank reduce your credit limit in future for only using 1% of limit.
anyone got their limit decreased in any bank due to this reason.
also if i dont use card at all. rare use , will it effect limit?

Yes bank Reduces limit.But not normally,Some abnormal situations like COVID or recession or Risk factor in card account..etc otherwise its rare.

 

[vijaypathak077]

one of my friend had 50000 credit limit on kotak CC, He paid CC bill late twice, kotak reduced his limit to 3600

 

[RkrRkr is verified member.]

one of my friend had 50000 credit limit on kotak CC, He paid CC bill late twice, kotak reduced his limit to 3600

Late payment will decrease your limit undoubtedly.

 

[RkrRkr is verified member.]

Credit card are desi

bank holds that amount for us and we dont use. whats the benefit to bank.

Credit cards are designed to work like this.Let the banks handle such issues..Our part is to use and maximise the reward.

 

[RkrRkr is verified member.]

one of my friend had 50000 credit limit on kotak CC, He paid CC bill late twice, kotak reduced his limit to 3600

If the late payment is more than 3 days then it will impact your limit as well score.Usually card issuers willing not to charge any fee if you have missed your due date unknowingly otherwise hefty penalty will be charged

 

[akshayhs]

bank holds that amount for us and we dont use. whats the benefit to bank.

What do you mean by banks hold that amount for us? Doesn't make any sense. Are you implying they will have X amount sitting there idly waiting for the person to use it?

 

[RkrRkr is verified member.]

What do you mean by banks hold that amount for us? Doesn't make any sense. Are you implying they will have X amount sitting there idly waiting for the person to use it?

Yes he is right .Whatever limit assigned to you, bank has to block that capital .