Bhuvanchandra M
KF Ace
Currently, my credit limit is four times my income. Is this safe?
Which is a safer ratio
Which is a safer ratio
No issue. Just you won't be able to get Credit Card from few banks like SBICurrently, my credit limit is four times my income. Is this safe?
Which is a safer ratio
What! who told you that. My father have almost 5 times the income as credit limit and that too from SBI. Do not spread misinformationNo issue. Just you won't be able to get Credit Card from few banks like SBI
So you are saying your father has credit limit of 5 times than his Annual income? Eg. Annual income 10 lakh and card limit 50 lakh? Looks highly improbable to meWhat! who told you that. My father have almost 5 times the income as credit limit and that too from SBI. Do not spread misinformation
So you are saying your father has credit limit of 5 times than his Annual income? Eg. Annual income 10 lakh and card limit 50 lakh? Looks highly improbable to me
Most people know about over leverage issue with SBI Cards application.What! who told you that. My father have almost 5 times the income as credit limit and that too from SBI. Do not spread misinformation
I have full common sense and I also know how this ratio is calculated but it seems you are ignorant of the same else you would not have said that. The leverage is calculated taking into account the credit limit across all the credit cards a person has against his/her annual income. Having a limit of 5 times of someone's monthly income is very common and most of the banks give that individually even when someone has other cards. When someone has credit limits which are more than their annual income that's when banks start having issues in some cases..in case of high incomes most of the banks ignore that as well as they also see usage but likes of SBI may reject.Did I say Annual anywhere? Use some common sense—'income' here clearly refers to monthly income. If the OP actually meant 'Annual Income,' he should have explicitly stated it. Don't assume things that aren't mentioned!
what he says is true.. some banks consider that as OVER LEVERAGED.. SBI is famous for this.. however its not a rule.. there are many factors.. so may not literally apply to all cases!!What! who told you that. My father have almost 5 times the income as credit limit and that too from SBI. Do not spread misinformation
oKay,,.. Wasn't aware of the ratio thing, but now I do. My sincere Apologies.I have full common sense and I also know how this ratio is calculated but it seems you are ignorant of the same else you would not have said that. The leverage is calculated taking into account the credit limit across all the credit cards a person has against his/her annual income. Having a limit of 5 times of someone's monthly income is very common and most of the banks give that individually even when someone has other cards. When someone has credit limits which are more than their annual income that's when banks start having issues in some cases..in case of high incomes most of the banks ignore that as well as they also see usage but likes of SBI may reject.
nothing called safe.. safe for / from what?? Having higher ratio is not a negative for anything.. however some banks may not issue further cards as OVER LEVERAGE.. And if you apply for too many in a short span may appear CREDIT HUNGRY!!Currently, my credit limit is four times my income. Is this safe?
Which is a safer ratio
Heard/ seen from various people for SBI it is 2x or less than thatSafe Ratio>?