American Express India has started reporting credit limits to credit bureaus. Here’s what that means and why it matters for cardholders and applicants.
Previously
Historically, American Express and several other issuers did not report the actual credit limit to credit bureaus such as CIBIL. Many banks reported only the high credit or highest-ever utilization instead of the sanctioned limit. For example, HDFC reports high credit but not necessarily the issued credit limit, which only partially helps to represent your credit profile accurately.
Why this matters
When an issuer does not report the credit limit, your credit utilization ratio can appear higher than it actually is. Utilization—the percentage of available credit being used—is an important factor in credit scoring. If the denominator (your credit limit) is missing or understated, your utilization looks worse and your score can suffer.
This reporting gap also affected card-on-card applications. When another bank evaluates an application using an Amex statement, they could not verify the stated credit limit. As a result, some issuers were reluctant to approve card-on-card applications that relied on Amex statements, even though Amex customers often make strong targets for other issuers.
What’s changing
American Express has begun reporting both credit limits and high credit to credit bureaus like CIBIL. A recent check of a CIBIL report shows the Amex Platinum Travel card reflecting both the sanctioned credit limit and the high credit figure. This provides a more complete and accurate view of a borrower’s available credit.
At the time of writing, the Amex Reserve did not yet show the credit limit on my report. That may be due to differences in usage or billing cycles; updates can take a statement cycle to appear. I will revisit and update once it shows up on the Reserve account.
Credit limit increases and eligibility
Amex recently reopened its credit limit enhancement system but keeps eligibility criteria fairly strict. Limit increases still tend to be granted to cardholders with significant and consistent spending. For most active users this is not a negative change, as those with demonstrable spend patterns are likely to see their limits extended.
If you’re not with Amex yet
For those considering joining the American Express ecosystem, a few cards worth exploring include:
- Amex Platinum Travel (currently offered with no joining fee and a welcome bonus of 4,000 reward points)
- Amex MRCC (currently offered with no joining fee and a welcome bonus of 4,000 reward points)
Have you noticed Amex credit limit information appearing on your CIBIL or other credit bureau reports? Share your observations in the comments. Thanks to Rakesh for highlighting this change.