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Hey Guys, off topic question... My mom has a savings account in a Punjab National Bank branch. Recently while trying to do transaction branch manager is informing her account has been blocked as per SEBI directive, he is not showing any proof for the same. Now my mother does not even have a DEMAT account, nor does she have any dealings with stock market. Any suggestions on what to do regarding this? Please help with suggestions, we are completely lost as to what to do. Punjab National Bank
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#humblebrag there is no reason to lower it, better debt/equity will help your credit score
Why would you want to do that? One of the key factors contributing to your credit score is the utilization rate (ahh we can't escape those damn rates) or the percentage of available credit you use on your credit cards. This rate is calculated for each card individually and for all your cards in aggregate. The lower the rate, the more it boosts your credit score. The goal is to keep the rate below 20 percent.
OP- don't.
Would you spend 20k a month then?? Unless you're lowering it to like 8k a month (assuming you're not loaded) there's no point in that
I'm just worried I might end up spending more than usual due to the high line.
It's very simple - Have some self discipline with your spending habits OP
Credit card 101: credit line does not equal free money. Do not spend more than you usually do.
Don't
For starters, you should ever ask for a lower limit line (credit score reasons). More importantly though, if your reason is "you might spend too much", were you thinking of asking for a decrease from $50K to like $3K?
The answer to your question is yes you can ask they lower the line. But for the reasons above it's not a great idea. Plus, many card companies will approve spending above the limit and you will just owe the amount over limit in full at the next monthly statement rather than being allowed to revolve it.
I was thinking about lowering it from 50k to 20k, but I don't want to hurt my credit score so I won't bother.
🤔
A1, you're assuming OP will pay in full each month. Lowering to 20k would (sort of) prevent you from building a balance larger than $20k. Only sort of because of what I mentioned about about card companies allowing over limit spending and just requiring you to pay the over limit amount in full as a part of the minimum due.
O1- I'm assuming that cause it's the smart thing to do lol. Any consultant who carries a minimum CC balance should not be advising anyone