A new scam is targeting credit card users with false promises of high credit limits, potentially harming your CIBIL score. Here’s what you need to know:
How This Scam Works
- Scammers obtain your personal details (name, PAN, phone) due to weak data privacy laws.
- They call and promise high credit limits on new cards.
- After completing formalities, you receive a card with a much lower limit than promised.
Example:
A caller promised a ₹1 lakh limit but issued a card with only a ₹50,000 limit!
Impact on Your Credit Score
High Credit Utilization Ratio (CUR):
If your spending exceeds 30% of the card’s limit, it can hurt your CIBIL score.
For example: With a ₹20,000 limit, spending ₹15,000 means a 75% utilization, which negatively affects your score.
These agencies are paid per card sold, leading them to mislead customers with false promises of high limits!
How to Protect Yourself
Always apply directly through the bank: Avoid third-party agencies that may deceive you.
Don’t activate misleading cards: If you’re tricked, avoid activating the card to protect your score.
Stay alert and safeguard your credit health!