American Express India started reporting credit limits to Credit bureaus and here’s everything you need to know.
In the Past
Amex for a long time has the habit of not reporting Credit Limits & even high credit usage to credit bureaus like CIBIL. Many other issuers too don’t report credit limits, for ex, HDFC doesnt report Credit limit but reports High credit, which helps to an extent.
Why its important?
This used to be a problem for some, for ex, your “Utilization ratio” is affected when Amex limits are not taken into account, thereby impacting your credit score negatively.
Also when you apply for other bank card through card-on-card basis with Amex statement, they can’t verify if you really have the mentioned “X” credit limit. So, many issuers used to stay away from amex for card on card applications despite being the fact that they’re one of the best cardholders to target.
So all these are changing as American express has started to report Credit Limit along with the high credit to credit bureaus like CIBIL. I just logged into CIBIL to check and I could confirm the same as I see my Amex Platinum Travel credit card reflecting both Credit Limit and the High credit.
However its yet to reflect for Amex Reserve, maybe as I’m not using it or maybe because both are on different billing cycle. Will update the status on Reserve by month end.
That said, Amex opened their credit limit enhancement system recently but continues to keep strict criteria to be eligible for a limit enhancement. Yet, it doesn’t affect most negatively, as anyway the limit is extended for those who have significant spends.
Just incase if you are not in the Amex ecosystem yet, here are some of American Express cards worth applying,
- Amex Plat Travel (Currently FREE + 4000 Reward Points)
- Amex MRCC (Currently FREE + 4000 Reward Points)
Did you notice the Amex credit limit data getting shared with CIBIL and other credit bureaus? Feel free to share your thoughts in the comments below. Thanks to Rakesh for spotting this change.