What is the Credit limit ??
The term credit limit defines the maximum amount of extended credit to a customer of a financial institution. The lending institution extends the credit limit on the credit card or line of credit. The lender usually determines the credit limit based on the information provided by the credit-seeking applicant. Credit limits are a factor that affects customers’ credit scores and may affect their ability to obtain credit in the future.
Credit cards have become an integral part of life for many people these days. And one reality with people is the existence of credit card limits. As you are well aware, you cannot spend an unlimited amount on your credit card. There is a credit card limit mentioned here that you cannot afford. This is like a brake on your purchasing independence.
There are many things that determine the limits of this credit card. The bank sets limits based on your understanding of your ability to make payments. Some of the factors they take into account are your income – the higher your income, the higher your credit card limit will be. The second important thing they see is your credit score, which is based on your debt repayment record. A higher credit score gives you a higher credit limit.
It is possible to increase the credit limit. This will work if you are using your credit card successfully, paying off all your outstanding debts on time, and making the best use of your rewards and offers. Now if you want to increase the credit limit you can do it.
Many credit card users often complain that their credit limit is too low to suit their needs and that there is no key to how to increase the credit limit.
If you really want to increase your credit limits then kindly follow this guide…
Tips to increase your Credit card limit…
- Improve your credit score
- Your credit limit depends a lot on your credit score. That is the key to increasing the credit card limit.
- A credit score is like a review of your performance to use a credit card and it determines your creditworthiness.
- If you have never defaulted on your monthly installments, it will be easier to get a higher credit limit. Therefore, you must first focus on improving your credit score using a credit card.
- You can use the card to pay your monthly bills and the credit card bureau can show that you use your card to pay bills frequently and you need a higher limit.
- Regular payments :
- To convince a credit bureau to increase your credit limit, it is imperative that you pay the credit balance first. It is very important to make regular full payments on time.
- This factor improves your Credit score. It’s not important how big or small payment is on credit cards or loans. just in case of monetary hardship, pay a minimum to minimum due. This factor gives you a positive impact on the lender.
- By making timely payments, you can show that you can deal wisely with your credit card company.
- The utilization ratio of credit:
- keep your monthly balance lower will good reflect on the credit score. you should not use a credit card on a daily purpose because it represents that you are fully dependent on credit. you must maintain your utilization ratio between 30-40%.
- This will help you to get the maximum credit card limit in two ways.
- First, the low credit card use ratio indicates to the credit card company that you are not taking too much advantage to manage your expenses.
- Second, after the history of credit payments, it is one of the most important factors affecting the credit score. A low credit utilization ratio will boost your credit score and indirectly help you achieve higher credit limits.
- Give proof of income growth
- The probability of earning and the ability to pay off debts on time are the most important factors that credit card companies take into account when determining credit limits.
- So, if you have received an increase in your salary or if you have found an alternative way to increase your income, submit proof to the credit company and increase the credit limit.
- Minimize your financial obligations
- When you request an increase in the credit card limit, the bank or credit card company will consider the amount of debt you already have.
- This will include home loan EMI, other credit card bills, personal loans, etc.
- If you have a lot of liability, it is advisable to get rid of the fixed debt you have paid each month before asking to reduce and increase it.
- Apply for a new card
- The easiest way to increase your credit card limit is to apply for a new card that has a higher credit limit than your current card.
- If you are disciplined about your payments, you will easily get more credit limit cards.
Related bank process to an increase credit limit
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ICICI bank — Increase your credit limit through :
- SMS:
- SMS CRLIM <last 4 digits of card> to <5676766>
- The credit limit will be increased to the maximum available credit limit for eligible customers.
- iMobile app:
- Step 1- Go to the “Cards, Loans & Forex” section
- Step 2- Select your “Card Number”
- Step 3- Go to “Manage Card”
- Step 4- Click on “Manage Credit Limit” (under More options)
- Step 5- Select the “Desired Credit Limit”
- Step 6- Click on “Submit”.
- You will receive a confirmation message of credit limit increase in seconds and the enhanced limit can be used instantly for making your next purchases.
- Internet Banking:
- Step 1- Log in to Internet Banking
- Step 2- Click on ‘My Accounts’
- Step 3- Select and click on ‘Credit Card’
- Step 4- Go to ‘Manage Credit Limit’. Click on ‘Go’
- Step 5- ‘Existing Credit Limit’ and ‘Maximum Credit Limit’ option will be available. Enter the ‘Desired Credit Limit’.
- Step 6- You will receive an OTP on your registered mobile number, to authorize the transaction. Enter the OTP and click on ‘Submit’.
- You will receive a confirmation message of credit limit increase in seconds and the enhanced limit can be used instantly for making your next purchases.
- Customer Care:
- Kindly call ICICI Bank Customer Care on <1860 120 7777> <PB GB>, <1800 103 8181> <Wealth> and the Customer Care Executive will assist you with credit limit increase (if eligible).
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SBI Bank – Two ways
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Pre-approved Credit Limit Offer ( Zero document approval )
- SBI Card regularly identifies select cardholders for a Pre-approved Credit Limit Increase offer basis internal risk policy
- Eligible cardholders will receive an increased Limit offer through their registered Mobile Number via SMS, on Email, Monthly Statement and in Post Login Section
- Eligible cardholders can avail of this offer without any additional documentation requirement
- Website:
- Login to click on the Offers or Benefits tab on the left-hand side
- Check for any Credit Limit Increase offer on your account & click on the ‘Submit’ button
- Chatbot ILA:
- Login to Chatbot ILA, ask a query for Credit Limit increase, and follow the guided steps.
- SMS:
- SMS ‘INCR XXXX’ (last 4 digits of your card number) to 5676791 from your registered mobile number
- Helpline:
- Call us on the helpline number 39 02 02 02 (prefix local STD code) or 1860 180 1290.
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Credit Limit Increase with Income documentation
- In case you wish to increase the limit beyond the eligible Limit offered by SBI Card, please call on SBI Card helpline number at 1860 180 1290 or 39 02 02 02 (prefix STD code) and check with our customer care executive regarding your eligibility for a credit limit increase basis income documents
- The following income documents are accepted.
- Form 16
- ITR VI
- Last 2 months salary slip
- Soft copies of the aforementioned documents can be submitted to us at sbicard.com/email
- You can mail your relevant income documents to Correspondence Department, DLF Infinity Towers, Tower C, 10-12 Floor, Block 2, Bldg 3, DLF Cyber City, Gurgaon – 122002
- Post receipt and review of Income documents, the request for Credit limit increase will be fulfilled in accordance with the internal Risk Policy
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HDFC Bank
1. Net Banking.
- Follow the below-mentioned steps for the same-
- Step 1- Click here to visit the HDFC Net Banking portal.
- Step 2- Login using your Login ID and Password.
- Step 3- Click on the “Cards” option from the menu.
- Step 4- Now click on the “Request” option and then select the “Credit limit enhancement” option.
- Step 5– Enter your Credit Card Number and proceed further.
- The bank will verify your application and contact you regarding further processing.
2. contacting HDFC Customer Care on the below-mentioned number.
- Dial- 61606161 / 6160616 / 1800 266 4332
- The service is available 24 hours on all days including Sundays and Bank holidays.
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Axis Bank
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Axis Mobile App:
- Login > Credit Card > Select Card > Total Controls > Check for Limit increase
- You can place a request if your Credit Card is eligible else you will receive a prompt that your Credit Card is currently not eligible for Limit enhancement
- Internet Banking:
- Login > Accounts > My Credit Cards > Limit Enhancement > Check for Limit increase
- You can place a request if your Credit Card is eligible else you will receive a prompt that your Credit Card is currently not eligible for Limit enhancement.
- Call/e-mail:
- You can simply call Axis bank customer care numbers 1860-419-5555, 1860-500-5555, to check your eligibility as well as to raise a request for a limit increase on your credit card.
- You can mail to them creditcards@axisbank.com requesting to increase the credit limit on your card.
- If your card is eligible for enhancement, you may have to submit the following documents if you don’t have an account with Axis bank. The last two months’ salary slips if salaried, and latest IT returns if self-employed.
Eligibility criteria to increase the credit limit
- Credit Limit Enhancement can be considered subject to the internal policies of the Bank. Eligibility for Limit Enhancement is as below:
- The card should be active and normal
- There should be no payment delays on the card history
- Cards should be more than 6 months since the issuance
- There should be no limit enhancement/decrease or Instant Loan availed in the last 6 months
- The limit cannot be enhanced if the PAN details are not updated for the Card
The following documents are accepted
- Documents are not required if you hold an Axis Bank Salary Account
- In case of non-salary credit with Axis Bank, you need to provide the last 3-month Salary Slips along with 3 months Bank statement stating salary credit
- You need to provide the latest IT Return if you are Self Employed
- You can share these documents with us using the Email & Chat option on the right.
Disclaimer
The information and services included on this Web site may include discrepancies. Paidkiya will not be liable/responsible for any decision that you may take based on such inaccurate information. Changes are periodically added to Bank’s websites.
