Credit limit excess

Deal Cadet
Hello DD Family,

I have SBI cashback card (My first CC) and my limit is 20k. I need to buy different products worth 15k, 20k, 10k with SBI so that i will be getting 5% cashback.

May i repay the whole pending amount and use it beyond my credit limit per month?

If it so, I will get any penalty or reduce of CIBIL score? Please help me.
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Finance Ninja Finance Ninja
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Yes you may pay and reuse

Critic Critic
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SBI card has a user specific restriction where a user can't spend more than their card limit in a billing cycle month. One will only know it after trying to spend more than card limit by prepaying/immediately paying the amount.

@MrKool_JJ @caks2006407

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Benevolent Benevolent
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Hello bro,
Welcome to the league and congrats on your 1st card that to sbi cb cc biggrin
It's not advisable to completely use your 100% credit limit. Ideally it should just be 30-40% max to max.
Yes, banks do allow to overpay and use it fully so that you can do your txns in your cc but this is SBI that too SBI CB CC (5% cb on all online txns) so it's not at all wise to use it this way.

As far as all your CIBIL queries are concerned, you can refer to the below link which @shraaj has posted -

Hope this helps. smile

Benevolent Benevolent
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u can use no issues, make sure by 30 or 31 of month outstanding is just 30% of limit so CIBIL is not hit

doing very often may lead to blocking of card by SBI

Finance Ninja Finance Ninja
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For sbi, the utilisation is reported to credit agencies on statement date rather than the month end. So it's advisable to have below 30% outstanding on the statement date.

Finance Mentor Finance Mentor
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As per some users SBI doesn't allow them to use more than their cc limit in one billing cycle.
You won't get any penalty or CIBIL hit, since you are prepaying, but SBI might not allow.

Maybe if prepayment is overused, SBI puts some flag on the account to prevent business usage (not sure, just my guess)

Generous Generous
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Prepayment & over limit use is possible in Sbi cashback card. I did 50k transaction on 35k limit.

If all three transactions are different then I’ll suggest to first do 1 transaction, pay the CC & then do 2 transaction & so on. Don’t prepay all sum in advance. This will save your money getting stuck in CC is transaction doesn’t go through.

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