U2-approval over leveraged rejection reason for SBI Cards - Possible reasons and solution

[vijay.vj]

In my opinion, firstly, the culprit here is banks reporting duplicate limits to CIBIL. Next comes the total credit limit debt exposure, which is overleveraging for SBI. I don't think the number of cards is the reason.

I have an SBI Cashback card, but when applying for a core SBI card, I was rejected twice.

Regarding core card, what was the reason... did you manage to get core card later on?

 

[MS R]

I think overleveraging should be the reason (I didn't find out at that time). It's been around 5 months since my last rejection. I will try to apply again after a month offline (perhaps at any kiosk in the mall or airport). If I am still rejected again, I will have no option but to escalate.

 

[NTT]

Then 2 accounts in cibil.

You should check income details mismatch. Is your profile updated in all banks?

hi.. What do you mean by "Profile" updation in banks.

I am asking because I can see something like that in my bank (ICICI) mobile app but they never enforce that by any medium.. no mail.. no message.. no calls.. no pop up in app.

That thing appeared to me like a Desirable/Optional thing and not something important for either party (Bank and customer) otherwise by not it would have been enforced by any means.

My account is more than 10 years old (ICICI Bank)


Please share what that "Profile" thing means and how important that is and how that is beneficial to customers.

 

[NTT]

Axis is still fine. For some unlucky people after they upgrade their card, hdfc is still reporting old cc as active. As the original card was upgraded not cancelled, they can't do anything about it.😑

So what should one do when offered with card upgrade offer ? can we ask them in writing that current card will deem to be cancelled in credit bureaus before/after upgradation.?

Will they honour such conditions ? Or shall we lose the opportunity of upgrade ?

What can be the safe way out considering the context of this thread.

 

[sidp]

Please share what that "Profile" thing means and how important that is and how that is beneficial to customers.

In netbanking there should be a profile section where it should have all your details: your address, itr, type of income etc.
Problem is most of the time these details are input by a bank agent. And banks have different options. One bank would have freelance, other self employed. Some bank dont have salary option for self employed. So one bank would report income through salary, other as business income. Some don't allow special characters.

So if you apply many loans/cc frequently, each different variations are stored in cibil even though all of it are same. If one issuer gets suspicious why there are so many address/mobile/income details, they put derogatory remarks for inconsistent details.

After that it is difficult to get new loan/cc, especially from amex, sbi and axis. So better to take care it before that happens.
You can either use one address proof to update in all banks or manually file dispute in cibil & when they don't update, file rbi complaint.

 

[NTT]

In netbanking there should be a profile section where it should have all your details: your address, itr, type of income etc.
Problem is most of the time these details are input by a bank agent. And banks have different options. One bank would have freelance, other self employed. Some bank dont have salary option for self employed. So one bank would report income through salary, other as business income. Some don't allow special characters.

So if you apply many loans/cc frequently, each different variations are stored in cibil even though all of it are same. If one issuer gets suspicious why there are so many address/mobile/income details, they put derogatory remarks for inconsistent details.

After that it is difficult to get new loan/cc, especially from amex, sbi and axis. So better to take care it before that happens.
You can either use one address proof to update in all banks or manually file dispute in cibil & when they don't update, file rbi complaint.

Thanks for making it easy to understand.😊


Now one thing regarding: Updation of Income details in profile and also in CIBIL.

I understand profile shall have nature of work/Profession.

But where Does CIBIL get our income from ? Someone in this very thread spoke of mismatch with income as updated in CIBIL.

1) Do they have Income deatails also?
2) If so, How ?
3) Is it visible to us in our credit reports ? 4) If they have income details I wonder where do they get it from ?

 

[sidp]

Thanks for making it easy to understand.😊


Now one thing regarding: Updation of Income details in profile and also in CIBIL.

I understand profile shall have nature of work/Profession.

But where Does CIBIL get our income from ? Someone in this very thread spoke of mismatch with income as updated in CIBIL.

1) Do they have Income deatails also?
2) If so, How ?
3) Is it visible to us in our credit reports ? 4) If they have income details I wonder where do they get it from ?

When you apply for cc/loan, rhe issuer give the details provided by you to cibil.
It may or may not show to you, but it is visible to issuers When they do hard enquiry.

 

[NTT]

So

When you apply for cc/loan, rhe issuer give the details provided by you to cibil.
It may or may not show to you, but it is visible to issuers When they do hard enquiry.

I get this Part:

"Nature of work / Job profile is shared with credit bureaus by Cards/Loans issuing banks".


I was curious about the specifics of our income (Range, or say actual income) Profile.

The possibility of mismatch (if any) is with this specific range of income ?

OR

mismatch (in the context of this thread) is the different job profiles (Salary earning employee, Business owner, Self Employed etc ) with different banks we share ( or as you said at times agents fill in our profile at their end ).

 

[CHOCOPANDA]

Gemstones share one limit, I have 3 of them. Then Amazon pay.


Didn't check resent CIBIL report... good that its fixed...

Hdfc has been reporting full credit limit. But multiple times for multiple credit card

 

[MS R]

Axis is still fine. For some unlucky people after they upgrade their card, hdfc is still reporting old cc as active. As the original card was upgraded not cancelled, they can't do anything about it.😑

I had the Same issue with HDFC… my regalia rupay was converted to regalia master card… old card was showing 3.4 L balance in cibil even though upgraded to reg MC. Increasing credit utilisation. I reached to HDFC thankfully they closed my old account and made balance 0

 

[MS R]

U can Check my msg from this thread

Post in thread 'How to reduce Credit Card limit permanently'
https://www.technofino.in/community...edit-card-limit-permanently.23032/post-674239

 

[Boy 07]

This issue may be there with all the CC issuers but primarily with SBI Cards.

At SBI, your card application would get rejected instantly after your submission stating internal bank policy as reason. And obviously bank doesn't share the exact reason even if you escalate it to PNO. RBI complaint helps (yet to try).

I managed to have an agent inform the exact reason, which is U2-approval over leveraged. Seems like I'm having too much credit limit then I'm supposed to (total high credit limit/earnings ratio).

Common Reason -> Multiple cards sharing common credit limit. This is how it works in ICICI, HDFC, AXIS, etc.

Say you ACE with 5L limit, then apply for MYZONE... bank issues MYZONE with 5L limit which is shared with ACE. You can't spend more then 5L combined within these two cards. But when they report it to CIBIL, they will inform each card with 5L limit, thus making it 10L limit.

The ease with which ICICI provides LE, it becomes bane here... I have 4 ICICI cards with shared limit of 18L, shown as 2 accounts max... one for gem and another for cobranded.

Solution for ICICI:
You can send below SMS to decrease or increase the credit limit. Once you lower your limit, you can get back original limit or anything in between in same way.

SMS CRLIM XXXX YYYYY to 5676766 from registered mobile number.
Where XXXX is last 4 digit of card, YYYYY is the new limit which you want to keep. Incase you having trouble sending SMS to above number, you can send to 09215676766 as well. It gets reflected instantly, notified via SMS.

Solution for Axis:
I just applied for myzone and neo just because they were LTF... any easy way like ICICI or should have to close it?

Solution for HDFC:
I have no idea... HDFC already reports highest bill amount as credit limit...

Same things happening with me My Cibil is 779 I have One loan and 11 cards but when I am trying to apply For Sbi card it got instantly rejected with code U2 means over liability/leveraged

 

[Boy 07]

In my opinion, firstly, the culprit here is banks reporting duplicate limits to CIBIL. Next comes the total credit limit debt exposure, which is overleveraging for SBI. I don't think the number of cards is the reason.

I have an SBI Cashback card, but when applying for a core SBI card, I was rejected twice.

Not able to understand yet sbi declined my application from last one year in the name of over leverage.i have reduce my card limit 21 L to 14 L but still showing same thing now i am not going to reduce anymore. i will never apply for sbi card in future. lets enjoy other cards

 

[vijay.vj]

Not able to understand yet sbi declined my application from last one year in the name of over leverage.i have reduce my card limit 21 L to 14 L but still showing same thing now i am not going to reduce anymore. i will never apply for sbi card in future. lets enjoy other cards

What was the time between 1st application and 2nd application