Effect of low limit secured card on Credit score for people already having unsecured cards with good limit?

[Lordkk]

Suppose someone has only unsecured cards with good limits (over 50k) and no BNPL ever. And he takes few low limit secured cards (only 2k or 5k FD). What effect will it have on his credit profile.

1. Will it improve or decrease his score?
2. Will it effect the of future credit cards limit. Because if found low limit card in CIBIL future banks might give limit similar to that low limit card.
3. Should he avoid secured card altogether or go for high limit by making higher amount FD.
4. Will it be better if they are reported as low limit secured or low limit unsecured card? Because some banks report secured cards as unsecured.

 

[sachinvenga]

It will improve credit mix and therefore good for improvement in credit score.

 

[Lordkk]

It will improve credit mix and therefore good for improvement in credit score.

Apart from credit mix, what about the bad impact of low limit cards in CIBIL

 

[sachinvenga]

It will not effect the of future credit cards limit.

 

[Lordkk]

@S S V @Abhishek012 @vaibhav111 @TechnoFino @DocFixIt @raghu.rokda @007 @RAMESH BABU N @D₹V

 

[SSV]

Suppose someone has only unsecured cards with good limits (over 50k) and no BNPL ever. And he takes few low limit secured cards (only 2k or 5k FD). What effect will it have on his credit profile.

1. Will it improve or decrease his score?
2. Will it effect the of future credit cards limit. Because if found low limit card in CIBIL future banks might give limit similar to that low limit card.
3. Should he avoid secured card altogether or go for high limit by making higher amount FD.
4. Will it be better if they are reported as low limit secured or low limit unsecured card? Because some banks report secured cards as unsecured.

What a wasteful exercise it could be...

Telugu: Kondanu thavvi yaelukanu pattinatlu.
English: digging a mountain and capturing a rat

Just tell us your current position, and what you wanted it to be in the next 6 months

Secured CC and OD on FD don't work ..

 

[Vasuki]

Suppose someone has only unsecured cards with good limits (over 50k) and no BNPL ever. And he takes few low limit secured cards (only 2k or 5k FD). What effect will it have on his credit profile.

1. Will it improve or decrease his score?
2. Will it effect the of future credit cards limit. Because if found low limit card in CIBIL future banks might give limit similar to that low limit card.
3. Should he avoid secured card altogether or go for high limit by making higher amount FD.
4. Will it be better if they are reported as low limit secured or low limit unsecured card? Because some banks report secured cards as unsecured.

When c2c they match your highest limit not Lowest .

1- &2 -- it will increase credit mix . As one of secured card.
3- fd on icici for like 1-2 lakh & put it for 3-5 month for applying apay card later is a strategy.
Likewise in kotak u can try ( but whith serviceable area pincode)
4- doesn't matter what u have is what u have . Anything above 765+ score is good & be at peace of mind ..
Thinking too much about cibil is waste