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Should we always opt-in for CLI if bank keep providing it?

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panu24

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Hi,
I am frequently getting CLI on my ICICI credit card (i am not accepting it), I till date using that credit card only but now starting to apply various other bank credit cards to avail their own benefits.
1) If i really don't need any CLI because my spend is not that much, should I still keep updating my CLI on credit card?
2) What if my CLI reaches on this card to say 8L to 10L (currently its 2.5L), will it be seen as how much debt person am I when any financial institute look at my CIBIL report?
3) Is there any ideal limit on how much credit cards one should have and how much total credit one should keep on his credit cards to have good credit score?

I have no good knowledge in this area.
 
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I think you should always accept CLI which can help you in other Card to Card basis application especially premium cards. If you feel the amount is too big, have a transaction limit or credit limit set on your credit card for tension free.

Having a big CL will also help you in reducing Utilization ratio below 30% and in turn helping to add Cibil score.
 
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paresh22 said:
Hi,
I am frequently getting CLI on my ICICI credit card (i am not accepting it), I till date using that credit card only but now starting to apply various other bank credit cards to avail their own benefits.
1) If i really don't need any CLI because my spend is not that much, should I still keep updating my CLI on credit card?
2) What if my CLI reaches on this card to say 8L to 10L (currently its 2.5L), will it be seen as how much debt person am I when any financial institute look at my CIBIL report?
3) Is there any ideal limit on how much credit cards one should have and how much total credit one should keep on his credit cards to have good credit score?

I have no good knowledge in this area.
Click to expand...
Any tricks for getting credit limit increase often?
 
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paresh22 said:
Hi,
I am frequently getting CLI on my ICICI credit card (i am not accepting it), I till date using that credit card only but now starting to apply various other bank credit cards to avail their own benefits.
1) If i really don't need any CLI because my spend is not that much, should I still keep updating my CLI on credit card?
2) What if my CLI reaches on this card to say 8L to 10L (currently its 2.5L), will it be seen as how much debt person am I when any financial institute look at my CIBIL report?
3) Is there any ideal limit on how much credit cards one should have and how much total credit one should keep on his credit cards to have good credit score?

I have no good knowledge in this area.
Click to expand...
1) If i really don't need any CLI because my spend is not that much, should I still keep updating my CLI on credit card? Just increase the limit, spending is in your hands, bank won't force you to spend. I have 10.4L limit on my card and I hardly spend 10k on it per month.
2) What if my CLI reaches on this card to say 8L to 10L (currently its 2.5L), will it be seen as how much debt person am I when any financial institute look at my CIBIL report? Higher limit would be better for your CIBIL. I person having 1L CL if spends 30k on the card he is utilizing 30% of his/her limit which hits the CIBIL a bit but for someone with 10L limit it would be 3% of the credit limt.
3) Is there any ideal limit on how much credit cards one should have and how much total credit one should keep on his credit cards to have good credit score? There is no limit and no drawbacks of having whatever number of CC you have. I have a dozen credit cards and my Cibil is 770+ (that too when it has come down a bit because of my Amex card payment delay goofup and I took more credit cards last month). You just need to make sure you make the payments on time.

Also having a higher limit CC will help you in getting premium cards from other bank with higher limits. The banks also give upgrades to cards having higher credit limit. So higher credit limit won't hurt you in any way unless you start spending too much which is out of your capacity.

Hope this helps.
 
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Thank you @anish1516 for detailed reply.

I got one more question to ask here. I have seen many discussions related to CLI but do banks also decrease your existing credit limit in any circumstances. No I have not experienced any such thing but just a question came to my mind hence asking.
 
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paresh22 said:
Thank you @anish1516 for detailed reply.

I got one more question to ask here. I have seen many discussions related to CLI but do banks also decrease your existing credit limit in any circumstances. No I have not experienced any such thing but just a question came to my mind hence asking.
Click to expand...
Even I had similar question and posted here some time back. But I have never personally seen a limit decrease or heard it from any body. So we can assume it's not done.
 
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So ICICI has this issue, if you set transactions limit, in statement, it comes as credit limit.
I have a credit limit of 17.8L and set up transaction limit to 1.78L . When my statement got generated, it showed credit limit as only 1.78L.
I wanted to get a cc on card on card basis from another bank and they declined saying you have a low limit and thats when I came to know about this.
I asked icici and they told me that we are sorry, cant do anything as bill is generated.
 
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paresh22 said:
Thank you @anish1516 for detailed reply.

I got one more question to ask here. I have seen many discussions related to CLI but do banks also decrease your existing credit limit in any circumstances. No I have not experienced any such thing but just a question came to my mind hence asking.
Click to expand...

Yes I have experienced credit limit decrease by HDFC bank without any intimation/notification. That was more than 10 years back
 
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anish1516 said:
Even I had similar question and posted here some time back. But I have never personally seen a limit decrease or heard it from any body. So we can assume it's not done.
Click to expand...
I haven't come across anyone in my circle whose limit got decreased. But there were complaints on twitter during the lockdown regarding the cc limit decrease.

Here are news reports from that time:
www.zeebiz.com

Has your Credit Card limit decreased? Check now, you may have done this

During the Coronavirus lockdown, bank customers have been found complaining on Twitter that their credit card limit has suddenly decreased.
www.zeebiz.com www.zeebiz.com
www.livemint.com

Taking moratorium may hit your credit card limit

Banks are lowering the limits on credit cards or blocking them for certain customers.Card issuers start reviewing their portfolios in times of economic stress more aggressively to cut down risk
www.livemint.com www.livemint.com
 
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Rashya said:
Yes I have experienced credit limit decrease by HDFC bank without any intimation/notification. That was more than 10 years back
Click to expand...
That's interesting! But in 10 years I think the scenario has changed a lot
cmg said:
I haven't come across anyone in my circle whose limit got decreased. But there were complaints on twitter during the lockdown regarding the cc limit decrease.

Here are news reports from that time:
www.zeebiz.com

Has your Credit Card limit decreased? Check now, you may have done this

During the Coronavirus lockdown, bank customers have been found complaining on Twitter that their credit card limit has suddenly decreased.
www.zeebiz.com www.zeebiz.com
www.livemint.com

Taking moratorium may hit your credit card limit

Banks are lowering the limits on credit cards or blocking them for certain customers.Card issuers start reviewing their portfolios in times of economic stress more aggressively to cut down risk
www.livemint.com www.livemint.com
Click to expand...
Yes I wanted to say that, none of my knowns atleast have faced. I have not scanned the while internet for it. hahaha
 
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