Sbi simply cb cc crlm reduced

[msankadi]

Hi
I got this sms a couple of days back randomly from sbi... This is the first time ever any bank has reduced my crlm... Anyways for reference I have 10+l limit on multiple cards
Dear Cardholder, basis internal review of your SBI Credit Card XX#CARD #, your Credit Limit has been revised to Rs40000 & Cash Limit has been withdrawn

I'm not bothered about the limit as I hardly ever used this card in past 3 years

1.Did anyone else get a similar message as well?
2. Should I be worried of this impacting my credit score? I can probably close the card if yes
3. Is this because of my low/non existent utilization on the card for past 2 3 years?

 

[akshayhs]

You put so much of effort to ask questions. What stopped you from fully typing credit limit instead of crlm?

 

[msankadi]

You put so much of effort to ask questions. What stopped you from fully typing credit limit instead of crlm?

Haha good question indeed. I. I work in the cc analytics industry for close to 20 years maybe this is just an acronym I have gotten used to from my internal usage

 

[Ram1]

You put so much of effort to ask questions. What stopped you from fully typing credit limit instead of crlm?

Same doubt. Saw crlm and thought its a strange thing and opened this thread. Lol

 

[Aniket]

Hi
I got this sms a couple of days back randomly from sbi... This is the first time ever any bank has reduced my crlm... Anyways for reference I have 10+l limit on multiple cards
Dear Cardholder, basis internal review of your SBI Credit Card XX#CARD #, your Credit Limit has been revised to Rs40000 & Cash Limit has been withdrawn

I'm not bothered about the limit as I hardly ever used this card in past 3 years

1.Did anyone else get a similar message as well?

Many, you're not the first.

2. Should I be worried of this impacting my credit score? I can probably close the card if yes

No directly and yes indirectly, your total limit got decreased and hence it may increase your CUR, which may affect score but a lil bit for a short period of time.

3. Is this because of my low/non existent utilization on the card for past 2 3 years?

Most likely, yes!

 

[Aniket]

Same doubt. Saw crlm and thought its a strange thing and opened this thread. Lol

Same here, thought what the hell is crlm at the first instance.🤣

Instead of crlm, it would have been better if he had used 'limit' only instead of 'crlm'.

 

[Aniket]

You put so much of effort to ask questions. What stopped you from fully typing credit limit instead of crlm?

Haha good question indeed.

Ham sabko limit sunke heart attack na aajye iss liye nahi batya unhone, even dubara bhi nahi 🤣

 

[harsh_ujjwal]

Hi
I got this sms a couple of days back randomly from sbi... This is the first time ever any bank has reduced my crlm... Anyways for reference I have 10+l limit on multiple cards
Dear Cardholder, basis internal review of your SBI Credit Card XX#CARD #, your Credit Limit has been revised to Rs40000 & Cash Limit has been withdrawn

I'm not bothered about the limit as I hardly ever used this card in past 3 years

1.Did anyone else get a similar message as well?
2. Should I be worried of this impacting my credit score? I can probably close the card if yes
3. Is this because of my low/non existent utilization on the card for past 2 3 years?

No impact on credit score bcz u have higher limits card in your kitty.
Limit got reduced due to nonexistent utilisation.
Of late SBI cards is reducing limits of higher limit utilisation as well.

 

[NOOBY]

I work in the cc analytics industry for close to 20 years

2. Should I be worried of this impacting my credit score? I can probably close the card if yes

3. Is this because of my low/non existent utilization on the card for past 2 3 years?

Then shouldn't you tell us about it 🤣

 

[msankadi]

Then shouldn't you tell us about it 🤣

Indian cc industry is still beyond my understanding irrespective of the number of years I spend working for other countries

 

[SonyTom]

Its all related to provisioning or something like that. Whether you use your card or not, the bank / card company has to provision for that amount. So if you are not using the card, they will take this limit from you and enhance for someone else😁
* read something like this at TF itself
Experts can add / correct

 

[msankadi]

Its all related to provisioning or something like that. Whether you use your card or not, the bank / card company has to provision for that amount. So if you are not using the card, they will take this limit from you and enhance for someone else😁
* read something like this at TF itself
Experts can add / correct

Yes ideal scenario CLD (Credit line decrease strategy) includes the following:

Credit Score
Utilization L3M or Utilization L6M
Overall debt to income ratio
Total income
Total credit line across issuers
Total revolving balance across issuers
L6M delinquency across issuers
Total spend L3M,L12M across issuers

I can only assume SBI's CLD strategy is half baked so they just trigger a CLD by Utilization which is not profitable for the bank in the long run as acquiring a new High score/high income customer is typically 3-4x more costly....and this unexpected CLD for super prime customers is likely to cause silent or voluntary attrition

 

[SonyTom]

and this unexpected CLD for super prime customers is likely to cause silent or voluntary attrition

Thats true as evidenced by the closure of SC credit cards following drastic limit reduction. But frankly I think SBI card doesn’t care. People are madly rushing for their cards especially CB card. I too am in the process of getting a octane card.

In shopping malls, petrol pumps, railway stations, airports, you name it, they have agents pulling customers in hoards into sbi card. But the sad thing is these gullible people are lured to applying for some useless card which gets approved with low limit. These people inspie of being well educated, dont know how to use the credit card and end up paying just the minimum amount due and incur heavy interest payments.

So sbicard doesn’t want guys like you who pay bill on time to keep an sbi card. They want you to close the card and go !!!

 

[msankadi]

So sbicard doesn’t want guys like you who pay bill on time to keep an sbi card. They want you to close the card and go !!!

Kudos to them if they have identified a strategy and works for them....I think the sbi cb cc is not a meaningful enough part of cc portfolio to fret over...but I was just curious if it was due to anything related to my score or credit profile

 

[2025]

Kudos to them if they have identified a strategy and works for them....I think the sbi cb cc is not a meaningful enough part of cc portfolio to fret over...but I was just curious if it was due to anything related to my score or credit profile

Maybe it's related to ur overall credit limit accross banks. SBI follows that.

The most profitable customer for them are the ones who
1. Generate High Interest income for them
2. Pay annual and other fees and charges
3. Get them more commission

Which u r not. Hence, simply they don't want to incur higher cost for the customers who usually don't generate much income for them.

In future, all banks going to follow the same.

 

[tachniki]

Hi
I got this sms a couple of days back randomly from sbi... This is the first time ever any bank has reduced my crlm... Anyways for reference I have 10+l limit on multiple cards
Dear Cardholder, basis internal review of your SBI Credit Card XX#CARD #, your Credit Limit has been revised to Rs40000 & Cash Limit has been years

I'm not bothered about the limit as I hardly ever used this card in past 3 years

1.Did anyone else get a similar message as well?
2. Should I be worried of this impacting my credit score? I can probably close the card if yes
3. Is this because of my low/non existent utilization on the card for past 2 3 years?

Is this sbi cashback (cb) or sbi simplyclick/save?

 

[msankadi]

In future, all banks going to follow the same.

All banks want to follow the same...but given that the credit worthy AND credit needy market is not big enough (in terms of rupees....as population is high but per capita income is low) ....any credit card lender that wants to consistenly become the top 1-2 has to lead in the super prime segment too

Is this sbi cashback (cb) or sbi simplyclick/save?

simpliclick