What is the credit card limit?
Credit cards issued by banks allow you to spend money as per your credit card limit.
The credit card limit is decided by the bank/issuer up to which amount you can spend, you cannot spend more than your credit card limit a credit card helps you when you don’t have enough money to buy a particular thing but you can pay that later.
BeTimes Indian audience was not into spending much on credit cards as the Indians are more into saving, now more than 60 Million Indians depend upon credit card transactions and the question for everyone was how to get more limits on their issued credit card.
How to Increase Credit Card Limit
There are multiple ways that the bank/issuer checks on you to decide your credit card limit but if you match all the below-mentioned criteria then you will be able to get more credit usage limits.
Ask your card issuer or bank directly
You can ask your card issuer or bank to increase your credit card limit, they will make a check on your previous transactions and your spending behaviour.
Your income
Your income decides what would be your credit card limit, for eg my initial salary in 2020 was INR 15000, credit card company refused to give me a credit card.
I was in a metro city and the minimum limit to get a credit card over there is INR 20,000, so salary is the key point in deciding your credit card limit.
Take card upgradation
There are multiple cards available with the issuer and they provide the same to their customers on a regular basis, you can ask your bank to give you a free card upgrade with an increased limit, and there are many perks included in card upgrades like more loyalty points, food joint points, fuel cards
Pay your bills regularly
You need to be very clear on bill payments, always pay your all the bills before due date or on time this will help to maintain a good credit score.
Don’t take unnecessary loans
Do you have any active loans going on? Outstanding debts are the major factors which will affect your credit card limit increase, make your loan payments regularly and try to avoid getting unnecessary loans this will lower your credit score ultimately leading to a low credit limit.
Check your credit score
Credit score is directly linked with your PAN number and all your accounts, they monitor all your pending loan payments how often you make loans and other credit card payments and your 6-month aproxx spending pattern to give you your exact credit score.
Credit history
Make a check on your credit history how frequently you utilise the limit issued by the bank, don’t overuse your credit card every time, suppose your credit limit is 100 only use 70 to 80 per cent of it and make on-time payments, this will generate a trust factor among your card issuer leading higher credit card limit.
Benefits of having increased limit credit card
- You will be able to spend more on one card or your buying capacity will increase.
- This means your bank has more trust in you and it will be easy for them to process your loan application.
- You can use your credit card in any medical emergency
- You have a certain amount available with you to use in an emergency
- The more the limit more the perks would be like an increased number of free airport lounge access.
- Low interest rates on loans and foreign transactions.
Drawbacks of having increased limit credit card
- The first and foremost is your spending habits, you will start spending more when you know you have a certain amount to spend.
- You will ultimately start buying unnecessary commodities with the available credit card limit.
- Credit cards should be used as emergency funds other than that it will cost you more.
- Interest rates on late payments are much higher than normal ones, so ultimately you will end up paying more and more money.
How to check your credit score.
Earlier people checked their credit score by making a certain amount to the company to get an accurate result but thanks to the companies who brought credit score checks free of cost.
You can check your credit score from Cred and Google Pay free, even Cred will help you out to make your credit score good.
Multiple companies provide users with credit scores few of them are:
- Experian
- Equifax
- Transunion CIBIL Limited
- CRIF High Mark Credit Information
Steps to check your credit score
- Login to your cred Mobile application
- Go to the Explore Cred Page in the middle of the landing page
- Click on the view all
- Here is the option to check your credit score
- Fill out all the details and you will get your data over email.
- Banks that provide credit card services in India with an interest rate
India is full of lending service providers but here are few trusted banks that provide credit card services the interest rates of all the banks may differ from time to time, but as far as I know here are the names of banks and their interest rates on late payments so that you can make your decision wisely.
Interest rates may differ from card to card
- Amazonpay icici credit card 42% – 45.6% p.a.
- HDFC Bank 43.2% p.a.
- IDFC First Bank 9% – 42%
- Kotak Mahindra Bank 42% p.a
- SBI 42% p.a
- BOB 41.88%
- IDBI 40.8%
- IndusInd Bank 46.00%
- American Express 29.99%.
Conclusion
As we discussed to increase your credit card limit you have to make your timely payments, avoid unnecessary loans, and use the limited value of the total card limit to keep your credit score good then your bank will start trusting you and they will automatically offer you a higher credit card limit multiple banks like ICICI Bank, BOB, HDFC Bank they all Multiple type of credit cards, you need to check your credit score before applying.
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