What is Sanctioned Amount and How to Increase it.

[chai997]

Hi Everyone,
I own an HDFC CC with a 95k Limit, earlier it was 70k.

I used around 23k and paid it, but later when I checked CIBIL, my score dropped from 767 to 758.
I checked the accounts and found this.

Can anyone explain what is "Sanctioned Amount" is and how it's updated or calculated?
And kindly suggest to me how to improve my score from this point.

 

[theranos]

HDFC doesn't report credit limit but highest utilisation ever ...so best is to max out once and then repay it before reporting if possible ....this is a common issue with HDFC ....no other way than this . n
sanctioned amount is your max utilisation while current balance is present reported outstanding
just max it out repay then your sanctioned will increase as now your 30% is considered as of 31k not 91k ....so your 20k+ is high utilisation.... otherwise get any other bank cards if interested would increase the credit utilisation ratio as you would have high credit limit ..so as to improve credit score
but kindly don't take credit cards blindly if you can handle then go for it same is true for maxing out

 

[Indian]

As per your screenshot you not used less than 30% it’s above 50% so cibil score dropped! For hdfc only way make payment before month end and avoid current balance reporting to cibil.

 

[Chaitanya_V]

No offense , you're thinking too much. Sometimes it fluctuates due to multiple factors and may recover in coming months.750+ is good enough AFAIK and no need to worry ,unless you have late payments in reports.

 

[chai997]

HDFC doesn't report credit limit but highest utilisation ever ...so best is to max out once and then repay it before reporting if possible ....this is a common issue with HDFC ....no other way than this . n
sanctioned amount is your max utilisation while current balance is present reported outstanding
just max it out repay then your sanctioned will increase as now your 30% is considered as of 31k not 91k ....so your 20k+ is high utilisation.... otherwise get any other bank cards if interested would increase the credit utilisation ratio as you would have high credit limit ..so as to improve credit score
but kindly don't take credit cards blindly if you can handle then go for it same is true for maxing out

Got your point, thanks a lot for replying in detail.

A small doubt, should I need to max out and repay before bill generation or after billing is completed but before month's end?

 

[chai997]

No offense , you're thinking too much. Sometimes it fluctuates due to multiple factors and may recover in coming months.750+ is good enough AFAIK and no need to worry ,unless you have late payments in reports.

Yeah, I get it, but I'm trying to maintain my score to be near 770+, and I don't know how to increase the sanctioned amount limit to not fall in this case again.

 

[theranos]

Got your point, thanks a lot for replying in detail.

A small doubt, should I need to max out and repay before bill generation or after billing is completed but before month's end?

once you use it and the amount is settled ie credited to merchant and shows in statement...it's going to be reported which is usually 3-5 days post transaction...then it would be reported...so you can pay anytime
but if it's reported as current balance post bill generated or month end (whenever monthly report is sent by hdfc)then it would be again showing high utilisation so cibil would drop again ....so better to plan it for non monthly reporting time and pay it off as soon as reflected in statement

 

[theranos]

Yeah, I get it, but I'm trying to maintain my score to be near 770+, and I don't know how to increase the sanctioned amount limit to not fall in this case again.

if your credit acc and cibil is below a year don't worry too much once you have ontime repayments it would automatically increase in future...but if 9ld like 5+years it should be a concern but 750+ is still good but you can try to improve in next 6 months to get better credit from banks view

 

[theranos]

Yeah, I get it, but I'm trying to maintain my score to be near 770+, and I don't know how to increase the sanctioned amount limit to not fall in this case again.

if your credit acc and cibil is below a year don't worry too much once you have ontime repayments it would automatically increase in future...but if 9ld like 5+years it should be a concern but 750+ is still good but you can try to improve in next 6 months to get better credit from banks view

 

[chai997]

As per your screenshot you not used less than 30% it’s above 50% so cibil score dropped! For hdfc only way make payment before month end and avoid current balance reporting to cibil.

Thank you for replying, got the point.

 

[chai997]

once you use it and the amount is settled ie credited to merchant and shows in statement...it's going to be reported which is usually 3-5 days post transaction...then it would be reported...so you can pay anytime
but if it's reported as current balance post bill generated or month end (whenever monthly report is sent by hdfc)then it would be again showing high utilisation so cibil would drop again ....so better to plan it for non monthly reporting time and pay it off as soon as reflected in statement

Thanks a lot, @theranos , totally got it. will try this.