Having 3-4 credit cards will ever affect your eligibility to take a big loan?

[Shubhankar Shukla]

I have 3 credit cards and I'm getting a free credit card with higher limit then all of my cards, but I'm confused about keeping a higher limit card and 3-4 credit cards affect eligibility of taking bigger loans or it will give positive points for that

 

[Skylar]

I have 3 credit cards and I'm getting a free credit card with higher limit then all of my cards, but I'm confused about keeping a higher limit card and 3-4 credit cards affect eligibility of taking bigger loans or it will give positive points for that

While it typically doesn’t have a significant impact, there are important considerations to bear in mind. Public sector banks (PSU banks) often decline credit card applications when an individual’s credit limits exceed their annual salary, citing "overleveraging". It remains uncertain whether this limitation applies solely to credit cards or if it could also affect loan approvals.