On one fine day, I received a call from Yesbank credit card department saying that I’ve consumed more than 80% of my credit card limit and that I can opt for a temporary limit enhancement if I wish to. Though I’m fine with my existing limit, I agreed for a temporary limit enhancement, so I get some cushion on credit limit utilisation ratio and also i want to see how this stuff works.
YESBank Credit Card Temporary Limit Enhancement
The same was taken up for review and then was approved with 2X limit in 3 days. Now the net-banking shows the enhanced limit as my actual credit limit. The Catch is that I need to payback the additional usage above my existing limit within ~20 days. I was given a date before which I need to clear my extra usage on the card.
The Process: You get the call. You agree for the limit enhancement – they approve/deny and set a date to clear those additional usage. The Limit gets increased to the newly approved one and then falls back to the original number on the date mentioned by them.
Note: YesBank mobile App has been updated and now can show all details of your credit card on their mobile app. That adds one more reason why you should get Yesbank Credit Card.
So what’s the eligibility criteria to get temporary limit enhancement?
You need to receive a call based on your usage. Ideally, spending 80% or more should trigger the call as it did for me. You can’t initiate it through phone support as they seem to have less access to this, as usual.
The phone support can still get temporary limit enhancement if you have any emergency need. No idea how this is defined but its more like fuel spend or international travel spend, etc.
While getting high temporary limits could get easier like this way, remember, with high limit comes high responsibility. Also, i don’t see a use in this temporary limit enhancement thing unless someone really has a requirement, like high ticket purchase. I would rather suggest you to go for permanent limit enhancement. Check out How to Increase Your Credit Card Limit with 7 proven ways.
Have you received such calls for temporary limit enhancement from Yesbank or maybe on other cards? Feel free to share your experiences in comments below.
Hi,
I just curious..how does credit card users spend their expenses..apart from aviation travel…how you all are doing the spends in daily life..can u give us any tips ??
Travel & shopping would be the major expense for many. You can also maximize it by spending on card wherever possible like Dining, dept. stores, etc. Higher # of swipes in different categories is also being rewarded by some banks, like SBI.
Apart from diverting all ur expenses thru credit card one can pay thr house rents thru credit cards and earn reward points, to pay rent using card one has to use services of RedGiraffe website.
Hearing about redgiraff site first time…checked it out thru google…new & nice platform to pay off rental bills through CC…will try it in the future…thanks saurab and sid for the tips..!!
But RedGiraffe actually charges Rs 39 for Rs 10000 rent. Actually we are paying extra through RedGiraffe. Can you please explain the advantage of using RedGiraffe other than the obvious credit card reward point accumulation? Thanks.
I am fairly a new passenger on this credit train. I have HDFC and SBI cards for now. The limit which banks gave is sufficient for me for the most part but like to have increased limits and have more cards. This is the best site for credit cards. Thanks to google. Reading every article even following Siddharth and Abhishek Sir on social medias. Learning something or the other everytime 🙂 Thanks both for sharing info.
Thanks for your kind words. Keep reading & keep saving 🙂
interesting !!
I haven’t received such call though i have used more than 80% of CC limit in both last 2mths..
It may also be bcaz i pay some amount even before due date to re-gain some of my Credit limit.
Yes Bank has given Lower limits even on their Premium cards…. and hence maybe they are testing things via Temp Credit increase
You should be able to get the limit enhanced in sometime time soon then.
Hi Sid
Really good to read about this new feature in yes bank cards.
My approach to CCs is that all spends must be those which know are payable with or without CCs. If ever I am getting close to my limit, I just pay the unbilled amout and free up the limit. I have in the past spent way more than my CC limit in a month in this manner.
Yes, that’s a good practice Aman. I generally allow it to reach the limit every once in a while, so banks know that i need more limit, like now 🙂
This temporary limit enhancement seems more a newer approach to entice customers to spend more. This was probably started around the time when the 2x, 3x,5x, 10x promotions were live and I must say is a very good tactic to entice someone who is already on a spending spree during the promotion to go the extra distance and spend more. It is more useful for the bank than for us. It probably gives us the temporary satisfaction of availing the maximum use of the promotion offers but the burden of paying back becomes even more. This is the case with a lot of people if you ignore those who are very disciplined with CC spending.
One other info that I want to share is about over limit fee. I did spend more than my credit limit in October and they posted a 500 rupee fee in my statement. Going back to how it happened, I paid the September bill 2 days before the due date but due to continuous holidays, the payment got credited 2 days after the due date. In the meanwhile, I made some new purchases in those 4 days and ended up crossing the limit. I called the CC and asked them to reverse the fee stating the above scenario and to which they denied. I requested them again to consider the waiver at least seeing the amount of spend I made. The lady said there will be lot of approvals required for the waiver and that she cannot guarantee a waiver but still took the request. 10 days later, the fee was reversed.
Please note that even if you pay using your YES bank savings account, the payment doesn’t get credited instantaneously. So it is good to make payments at least 2 to 3 days in advance.
Yes, Most banks reverse the over limit fee when requested. This happened to me 5 yrs back on Axis card and was able to get waiver over email.
They sure need to speed up posting the payments. It takes at-least 3 days for me.
Sid, its instant if you pay yesbank cards via their netbanking portal / yesbank savings account.
But i always pay through other bank/billdesk. SBI/HDFC are faster in such cases.
Yes, SBI is instant even in Billdesk.. As you have Yes Bank Account. You can try paying using it next time.
Certainly!
I have made payments using Yes bank account on Bank holidays and I have seen the amount getting credited to my CC account instantly
It wasn’t instant in my case. Will try again this month and if it is not instant then I guess I have speak to CC about it.
if payment thru billdesk/clicktopay is slower than neft from other bank in crediting to card a/c.
please confirm fasted method for credit to various card companies/banks.
thanks in advance.
Sure. Will do as separate article shortly. Ideally, same bank bill payment has to be instant.
Am eager to know….SID
How can u consume 80% limit … if done does it trigger red flag on CIBIL score ….
Waitin for ur reply
Not really.
It doesn’t raise any red flag as such for consuming more limit on one card as other cards are still used less.
Also, as i mention often, maxing out the limit once a year or so is good if you need more limit. As it triggers banks that you need more limit.
Hi sid
I too have noticed this. Earlier there was a lag of a day between auto debit and limit release. Now it happens on the same day.
Hopefully they speed up the NEFT/Billdesk payments too in future, like SBI.
Hi Sid
On a side note, I have a question:
Which card is best if you have utility (electricity) payments over a lac rupees. Currently using YFE (2.5% rewards) for this.
SBI does not have this biller in its standing instructions or I would have gone for SBI Prime (5%).
I’m yet to spot any magic card for Utility spends as mine is usually very low.
And, somehow HDFC is still issuing reward points for EB bills paid on TNEB (Tamilnadu Gov. Owned) site. So i’m just happy with it for now 🙂
You mean TNEB accepts dinner? Will try to get DCB/ Infinia & try. How are the redemption options for them?
As compared to YFE?
Yes they do.
YFE is better in that comparison as HDFC is limited to travel redemptions.
I read in one of the comments that for billers that are not listed on the website, you can reach out to SBI CC and get the SI set up by them. Try it out.
Thanks Praveen
I was informed that Yes Bank Credit Cards are not released in Kerala. I thought cards are issued pan India. Why is this regional wise thing happening?
Hi Sid,
Do you know any bank other than Yes bank which offers Card on Card based Credit Card?
P.S I am willing to open saving account if necessary.
SBI also does it.
But Sbi doesn’t waive annual charges or offer LTF cards. Would have really liked Prime / ELITE LTF.
You can still get waiver based on spends which is good enough 🙂
Hi Guys,
Can anyone write about OD accounts for individuals, which is the best bank to have your OD.
How about bajaj finance OD accounts?
Looking forward for your article.
OD for what purpose (end use of funds), security (asset you can mortgage) and income (how you will repay). Once you define these three you’ll be in a better position to decide. There is a product called DOD which is quite good these days & is offered by private banks at better rates & charges than bajaj.
Hi Aman,
Thanks for the response, OD for personal use in case I require a quick fund which I can pay back in couple of months I can use OD instead of applying for an loan and also interest rates are very attractive for OD accounts.
By the way what is DOD ?
Cheers,
Kiran
DOD is Dropline OD. Banks reduce the the OD amount every month over the tenure of the loan and you pay interest only on the part you have used.
Remember you have to pay processing fees and other charges (than just interest) for loans.
Thanks for the valuable information 👍🏼
My itr is 3 lacs.. I have many Credit cards and cibil above 825.. Can I apply card on card basis or itr basis in SC bank or in citi bank or Yes bank reward plus card?
I already have sbi hdfc axis kotak..
Hi There, I have a HDFC JA World CC with a limit of 2,40,000. In the month of Feb’18 I have to pay an installment of 4,00,000 for an apartment. I would like to do it thru my CC. Can I approach my bank to temporarily increase my limit. -OR- Should I do a split and pay it once and then deposit money and then pay it again.
-OR- Should I deposit the entire amout in my CC account and have it charged it one go.
Is your builder accepting CC payment? Most of them wont!
You can try for LE if you’ve passed 6 months time. Else, you can always split and pay.