Is it good to have high credit limit?

[mrworldwide]

Is having high-limit credit cards a good thing or should I ask the bank to reduce my limits? 🤔💳


Sharing my CC stats below -

CC1, CC2 – Shared Limit: ₹4.2L
Average Monthly Usage: ₹10-15K

CC3, CC4 – Shared Limit: ₹2L
Average Monthly Usage: ₹5K

CC5 – Limit: ₹5L
Average Monthly Usage: ₹5K

CC6 – Limit: ₹5L
Average Monthly Usage: ₹5K

I maintain low utilization and always pay in full. But total credit limit feels unnecessarily high.

Should I:

• Keep the limits as-is for better credit score/utilization ratio?
• Or reduce the limits for safety and lower risk perception?

 

[techstrom007]

Higher limit will keep your expense ratio low .. so better.

For example with 1L, 10k spends is 10%

but with 10L limit is 1%

 

[sousnake]

Is having high-limit credit cards a good thing or should I ask the bank to reduce my limits? 🤔💳


Sharing my CC stats below -

CC1, CC2 – Shared Limit: ₹4.2L
Average Monthly Usage: ₹10-15K

CC3, CC4 – Shared Limit: ₹2L
Average Monthly Usage: ₹5K

CC5 – Limit: ₹5L
Average Monthly Usage: ₹5K

CC6 – Limit: ₹5L
Average Monthly Usage: ₹5K

I maintain low utilization and always pay in full. But total credit limit feels unnecessarily high.

Should I:

• Keep the limits as-is for better credit score/utilization ratio?
• Or reduce the limits for safety and lower risk perception?

I don't like high limit on cards.
But I do have 15+ cards so in total my utilisation ratio is always low.

 

[praful47]

I don't like high limit on cards.
But I do have 15+ cards so in total my utilisation ratio is always low.

Yes approx 1 lakh feels satisfactory

 

[aniketkr.sharma]

Is having high-limit credit cards a good thing or should I ask the bank to reduce my limits? 🤔💳


Sharing my CC stats below -

CC1, CC2 – Shared Limit: ₹4.2L
Average Monthly Usage: ₹10-15K

CC3, CC4 – Shared Limit: ₹2L
Average Monthly Usage: ₹5K

CC5 – Limit: ₹5L
Average Monthly Usage: ₹5K

CC6 – Limit: ₹5L
Average Monthly Usage: ₹5K

I maintain low utilization and always pay in full. But total credit limit feels unnecessarily high.

Should I:

• Keep the limits as-is for better credit score/utilization ratio?
• Or reduce the limits for safety and lower risk perception?

I am not able to see any high limit on any of your credit cards.

Low limit < 1 Lakhs
10 Lakhs > Middle Limit > 1 Lakhs
High Limit > 10 Lakhs

 

[publicity]

Is having high-limit credit cards a good thing or should I ask the bank to reduce my limits? 🤔💳


Sharing my CC stats below -

CC1, CC2 – Shared Limit: ₹4.2L
Average Monthly Usage: ₹10-15K

CC3, CC4 – Shared Limit: ₹2L
Average Monthly Usage: ₹5K

CC5 – Limit: ₹5L
Average Monthly Usage: ₹5K

CC6 – Limit: ₹5L
Average Monthly Usage: ₹5K

I maintain low utilization and always pay in full. But total credit limit feels unnecessarily high.

Should I:

• Keep the limits as-is for better credit score/utilization ratio?
• Or reduce the limits for safety and lower risk perception?

If your only real worry is risk of misuse you should just reduce the total limits for each category on the card, pretty much all banks let you do it and in any case some misuse does happen you are theoretically protected with insurance that the banks give to you along with the cards.
I'd never recommend anyone to ever reduce their limit as it helps in other areas like CC upgrades and C-to-C applications. Also, it indirectly improves your credit score because of low utilization ratio.

 

[keerthirahul123]

intially when i applied for SBI card, it was rejected for me with over leverage... i checked , i think this forum or somewhere else and reduced my ICICI card limit from 35 L to 21L and then simply click was approved.

 

[RewardsFunter]

How much limit is too much limit? After a recent addition of a high limit card, my total limit has now reached to ~97-98L and I have been thinking if I should bring it down.

Anyone with such high limits can please chime in if it has affected their ability to source more cards or impact on CIBIL. Thanks!!

 

[keerthirahul123]

How much limit is too much limit? After a recent addition of a high limit card, my total limit has now reached to ~97-98L and I have been thinking if I should bring it down.

Anyone with such high limits can please chime in if it has affected their ability to source more cards or impact on CIBIL. Thanks!!

yes it does.... i have a very huge limits with multiple banks and grabbing few cards from banks are hard now especially SBI, Federal, AU, SC,,, since all of them cited the reason as too much unused credit.

2 days back tried with federal celesta and it magically got approved. SBI is going to put dogs behind me if i even go near them now 😛 .. Need to rery with AU & SC.

 

[RewardsFunter]

Do you have any experience with Axis and HDFC with high limits? I have SBI Cashback and not eyeing any other card from them, or any other bank you mentioned. If Axis or HDFC consider this as red flag, I'll reduce it.

What's the total limit you have across cards? and number of cards you have

 

[aniketkr.sharma]

Do you have any experience with Axis and HDFC with high limits? I have SBI Cashback and not eyeing any other card from them, or any other bank you mentioned. If Axis or HDFC consider this as red flag, I'll reduce it.

What's the total limit you have across cards? and number of cards you have

5 Cards
21.1 Lacs