how did you get your ICICI limit reduced? via email or phone?
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How to reduce Credit Card limit permanently
- Thread starter SuperKnight
- Start date
I did, via phone. They told me that I have an option in the app to reduce the CL. It wasn't there and then they enabled it for me.
We can do this in the APP and in the next iteration it will report the reduced limit to bureaus..
So if you have too much unsecured loan (credit cards, personal loans) that exceed a multiple of your income (1.5x, 2x depending on the bank) they can deny you new credit saying you are over-leveraged to be in-line with latest RBI guidelines.
One of the methods to reduce leverage is to reduce your credit exposure by closing unnecessary cards and reducing CL. I have now made by total CL about 1.2x of my annual income which should be ok with most banks.
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Oh.. I thought reducing it in the App, just modifies the transaction preferences.
Never knew, the limit in the App will be the limit reported to CIBIL.
ok, it make sense.. but as far as I know the SBI is the only one which is taking this factor into consideration before approving an application.
so, I suggest you not to reduce limit in your cards instead close the cards that you don't use often.
If your utilization ratio is good there won't be any impact of over-leverage on your future applications
As far as I know, SBI, SCB and RBL seemingly look at leverage, but SBI takes it way too seriously.
Yeah I have done exactly that. I've closed some and got credit limits reduced for others and cleaned my CIBIL too.
- Closed IndusInd Legend with 5L CL
- Closed HDFC Regalia Gold and Tata Neu Infinity 3L each
- Closed Axis Magnus 6.6L
- Closed BOB Eazy 1.5L
- Reduced Axis Atlas and Axis IOCL from 6.6L each to 6L each (individual CL reduction is not possible)
- Reduced ICICI Amazon Pay from 6.6L to 3.25L
- Reduced Citi PremierMiles from 4.8L to 2.05L
- Reduced SCB from 3.66L to 2L.
- Left IDFC Select (1.82L), SBI IRCTC (1L), AMEX MRCC (2.08L) and BoB Premier (1.5L) as it is.
- ICICI Coral with 2.5L (and 575 credit balance)
- HDFC Privilege Diners with 3L
- BoB Eterna with 1.5L
- SCB some account without a CL
Oh and also, my employment details in CIBIL are all wrong. The company name is my old company and monthly income is only a quarter of my actual income thanks to one SBI branch aunty. I think this was a reason why I was being rejected for everything.
It is not permanent.. you can go back to original limit
Yes, try once..
What it means:
it won't change the granted limit by icici to you..means you can.go back to original limit when ever you want.
I read somewhere, the changed limit only gets reported to cibil..
You need to try and wait until it gets reported
You can even check after statement gets generated
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Sir you reduced leverage by 28L. I am certain the removal of Coral Card with balance and reduction in active accounts playing more role in CIBIL improvement than leverage reduction.
Leverage reduction is kind of increases Bank's Future confidence while higher Leverage (potential) shows past and present credit worthiness.
2x leverage of Annual Salary should be fine.
I like ICICI for this ability to reduce the credit limit temporarily. However, I can't find any info about Axis CC. I know the customer care can reduce the credit limit on request. However I'd like to know if the reduction is temporary or permanent with Axis?
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I want to know the same, I have ~30L limit on Axis while I am certain I will never need more than 5L on AXIS if SBI rejects me whenever I apply will surely reduce Axis to 5L
bro how did u clean up? i have couple of accounts with around 5L balance ,, i need to clean as well
Cc @rogerthat ..
Hi bro well first you need to identify which accounts to clean up in CIBIL and then call/email the banks and keep following up with them until the cards are closed and/or removed from CIBIL. It is a pain and you need a lot of patience... Especially when it comes to removing the accounts from CIBIL.
For me Citi was the easiest to deal with and BoB was the most difficult. IndusInd took around two weeks to close the card and around a month to remove it from CIBIL. BoB also took more than a week to close the cards but it took close to two months and endless follow ups to remove the cards from CIBIL. I had to escalate it until PNO to get the cards removed. HDFC is another story, the cards were closed immediately and removed from CIBIL but another card that I closed long ago was still stuck there like a ghost. I had to do multiple follow ups to get that one removed. And then the cards were still showing up in netbanking and had to raise yet another request to get those removed. Reducing CL was easy though they all tried a lot to talk me out of it.
