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

[vijay.vj]

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...

 

[Zacobite]

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, now you do the math how horrible it is...

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...

you shd close some cards.. not reduce limit..this is an sbi problem now commonly reported

 

[vijay.vj]

you shd close some cards.. not reduce limit..this is an sbi problem now commonly reported

Is it really cards or limit...
How many cards are accepted...

 

[redcarpet]

Is it really cards or limit...
How many cards are accepted...

I was told I was over-leveraged when my total cards limit (including shared limits individually) is 1.3x of reported cibil annual income.
CC told to make it even less, around 1x or less..


Dont think no. of cards matter, only total reported limit.

Also,

And obviously bank doesn't share the exact reason even if you escalate it to PNO

I escalated to customer service head of SBI and I was told the reason over call by cc guy (who called wrt to my SR) and he told me he can only share reason over phone and not in mail as per bank instructions

 

[redcarpet]

U2-approval over leveraged

What is U2 approval over here

 

[vijay.vj]

U2-approval over leveraged

What is U2 approval over here

Looks to be some standard term, one of the thousand reasons to reject a loan or CC or such application

 

[Zacobite]

Is it really cards or limit...
How many cards are accepted...

limit for leverage.. depends on number and limits to income

 

[sidp]

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.

Which icici cc you have? All gemstone cards should be under 1 account. I think all cobranded in another.

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

Does hdfc still does it to you? Didn't rbi force them to report actual cl last year?

 

[vijay.vj]

Which icici cc you have? All gemstone cards should be under 1 account. I think all cobranded in another.

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

Does hdfc still does it to you? Didn't rbi force them to report actual cl last year?

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

 

[sidp]

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

Then 2 accounts in cibil.

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

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

 

[vijay.vj]

Then 2 accounts in cibil.

Nope, its 4 account. There is an entry for every card and entire limit mentioned to same card. That is the mess here.

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

Since my concern is with SBI, let me check it and update.

 

[Zacobite]

Which icici cc you have? All gemstone cards should be under 1 account. I think all cobranded in another.

Does hdfc still does it to you? Didn't rbi force them to report actual cl last year?

YES.. they report full CL now

 

[vijay.vj]

YES.. they report full CL now

What about AMEX?

 

[Zacobite]

What about AMEX?

amex also.. except for charge cards

 

[MS R]

Nope, its 4 account. There is an entry for every card and entire limit mentioned to same card. That is the mess here.

R u sure ?? for me its showing only 2 ICICI accounts In CIbil
I have (platinum , coral, rubyx, sapphiro MC/Amex) reported as 1 account , amzon another..

 

[vijay.vj]

R u sure ?? for me its showing only 2 ICICI accounts In CIbil
I have (platinum , coral, rubyx, sapphiro MC/Amex) reported as 1 account , amzon another..

You are right, I ended up adding loan accounts and felt like 4 entries total.

Is it amount of cards or the credit card limit which is troubling SBI...

 

[sidp]

You are right, I ended up adding loan accounts and felt like 4 entries total.

Is it amount of cards or the credit card limit which is troubling SBI...

Total debt exposure. I.e. cl
Have you tried asking axis to permanently decrease cl of neo/myzone. Even for offers 1 to 1.5L is more than enough. While asking please let them know you do not want to decrease cl of any useful cc.

 

[vijay.vj]

Total debt exposure. I.e. cl
Have you tried asking axis to permanently decrease cl of neo/myzone. Even for offers 1 to 1.5L is more than enough. While asking please let them know you do not want to decrease cl of any useful cc.

Yep to speak with them... Primary card is Airtel only... Myzone and Neo I got cuz its LTF and didn't expect I would apply for any other card after devaluation. Didnt know about this mess with shared limits.

 

[sidp]

Yep to speak with them... Primary card is Airtel only... Myzone and Neo I got cuz its LTF and didn't expect I would apply for any other card after devaluation. Didnt know about this mess with shared limits.

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.😑

 

[MS R]

You are right, I ended up adding loan accounts and felt like 4 entries total.

Is it amount of cards or the credit card limit which is troubling SBI...

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.