Credit cards are important financial tools that offer convenience, security, and potential rewards for everyday purchases. However, a crucial aspect of responsible credit card use is maintaining a healthy credit limit, i.e., the maximum amount you can borrow on your card.
Depending on your credit habits, you can also expand your credit limit. Having a sufficient limit allows for flexibility while keeping your credit utilization ratio low, which can improve your credit score.
This article discusses how to increase credit card limits in numerous ways so you can improve your financial situation.
Understanding how credit card companies determine your credit limit and what they consider when you make an increase request is important before exploring the methods for credit limit enhancement.
Creditworthiness Assessment: Credit card issuers use a variety of factors when determining your creditworthiness, including your credit score, income, employment stability, debt-to-income ratio, and credit card history. A good credit score and solid credit management practice boost your chances of getting a limit increase.
Pre-approved Offers: Some card issuers regularly pre-approve current cardholders for limit hikes depending on their creditworthiness. Look for notifications in your online account, email, or even physical mail to determine if you qualify for such pre-approved offers.
Now, let's explore the different strategies you can implement to increase your credit card limit:
This is the single most important factor. Consistently paying your credit card bills in full and on schedule displays good credit management, establishing you as a dependable borrower in the eyes of the lender.
Aim to keep the credit utilization ratio below 30%. This displays your capacity to manage credit responsibly while also reducing the creditor's risk assessment.
Once you have established a good credit history with your current limit, consider requesting an increase. Ideally, wait at least six months to a year of consistent, responsible usage before making your request.
The simplest approach is to contact your card issuer directly via their customer service number or online chat support. Explain your request for an increase, mentioning your good credit history alongside suitable credit utilization.
You may be able to increase your credit limit without having to submit a formal request to some issuers who offer periodic credit line reviews.
Sometimes, credit card issuers are not aware of any changes in your financial status, like a significant salary hike. You can give this information to your credit card issuer and ask them to increase your credit limit to match your new financial status.
Avoid making frequent requests for limit increases, as this might raise red flags for the issuer and portray you as overextended financially.
If your current issuer refuses to raise your limit, consider applying for a new card from a different issuer with a greater limit. However, ensure you're approved for the new card before shutting your current one, as closing accounts might harm your credit score.
How to Check Your Credit Limit?
Banks offer different ways to check your credit limit. Here they are:
To check your credit limit online:
Step 1: First, visit your bank’s website and log in to the internet banking portal.
Step 2: Navigate to the credit cards section.
Step 3: You will be able to see your total credit limit, available credit limit, and cash advance limit.
Install your bank’s mobile banking app and follow these steps:
Step 1: Log in using your banking credentials.
Step 2: Go to the credit card section.
Step 3: Your credit limit will be displayed.
Your credit card statement is sent to you every month via email. Open the statement to find your total credit limit, available credit limit, and cash advance limit.
You can call the customer service of your credit card or bank and ask for your credit limit. You can find the customer care number on your bank’s website.
Types of Credit Limits
Before we dive in, let’s look at the different types of credit limits that you will come across:
Total credit limit: Your total credit limit is the maximum amount of money you can spend using your credit card.
Available credit limit: The available credit limit is the current balance available on your credit card after your expenditure.
Cash advance limit: The cash advance limit is a portion of your total credit limit that you can withdraw from using an ATM. Cash advance limit is usually 20% to 40% of your total credit limit.
How to Apply for a Credit Limit Increase?
Banks offer various ways to increase a credit card limit. Here are some ways to increase your credit limit according to banks:
|
Bank |
Method |
|---|---|
|
State Bank of India |
Step 1: Log in to sbicard.com Step 2: Click on the ‘EMI & More’ tab on the left-hand side Step 3: Check for any Credit Limit Increase offer on your account Step 4: Click on the ‘Submit’ button |
|
HDFC Bank |
Go to the HDFC credit card limit enhancement page. Enter the details and click submit. |
|
ICICI Bank |
SMS “CRLIM <last 4 digits of Credit Card number>” to 5676766 from your registered mobile number |
|
Punjab National Bank |
Step 1: Log in to the PNB Net Banking portal Step 2: Navigate to the ‘My Accounts’ section and select your credit card Step 3: Click on ‘Manage Card’ and choose ‘Card Limit Increase’ Step 4: Set the new limit and submit your request |
|
Axis Bank |
Open Axis Mobile App > Login > Credit Card > Select Card > Total Controls > Check for Limit increase |
|
Union Bank of India |
Call the helpline number at 1800 425 4059 and request an increase in credit limit. You will be asked to submit your card details. You can also send your credit card details via email at customercare@unionbankofindia.com |
|
Kotak Mahindra Bank |
Call the customer service number 1860 266 2666 and request an increase in your credit card limit |
|
IndusInd Bank |
Step 1: Log in to your NetBanking account Step 2: Select your credit card, and go to the credit card page Step 3: Go to the service request option and click the upgrade option Step 4: Follow the instructions to increase your credit limit |
|
Yes Bank |
Call 1800 103 1212 and request to increase the existing credit limit |
|
Indian Overseas Bank |
Call 1800 425 7744 and request to increase the existing credit limit |
Several banks offer their customers the option to increase their credit limit by submitting a request through their website or mobile application. You can do this by logging into your account and under the Credit Cards section, look for the option to increase your credit limit.
You can contact the customer service of your credit card issuer to request a credit limit increase. Simply call the customer service number and request that the representative take you through the process. You may be asked basic financial information such as your current income, employment details, and how long you have been using your credit card.
With some banks and small financial institutions, you may need to submit a written request. In the application, request a credit limit increase and include details like your income, credit score, and the duration you have held the card.
Here are some tips to responsibly manage your credit -
While increasing your credit limit provides more flexibility, it is critical to use it properly.
Avoid maxing out your credit card, as this might harm your credit score and lead to future debt issues.
Stay inside your budget and only spend what you can reasonably afford to return on time.
Monitor your credit card statements regularly and promptly report any questionable activity.
By following these strategies and practicing responsible credit management, you can increase your credit card limit, improve your credit score, and unlock the full potential of your credit card for a more secure and rewarding financial future.
Want a Credit Card with High Limits & Rewards?
There are advantages to increasing your credit limit. You get more credit at your discretion and reduce your credit utilization. If you want to enhance your credit limit, first check if you are eligible.
If you recently got a pay hike, you are probably eligible to increase your credit limit. Check with your bank by calling the customer service line and informing them of your new pay rise, and ask for an increase in your credit limit.
If you are looking for a credit card that suits your needs, try applying through the Moneyview app or website.Credit Card Insights
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Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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