In the festive season, there is a shopping atmosphere everywhere from e-commerce platforms to physical stores. In many places, great discounts are being offered with no-cost EMI on credit cards. But, at such times, many times our credit card limit ends and we miss the opportunity to buy the things we need with a good discount.
Let us know how the credit card limit can be increased and what things the bank considers before increasing the limit.
What is a credit card limit?
When a bank or any other financial institution issues you a credit card, it comes with a limit. This means that if your credit card limit is Rs 30,000, then you cannot spend more than this in one cycle. The credit card limit is usually decided according to the income of the customer. It can also vary according to the card.
What things do banks consider?
The bank considers many things before deciding on the credit card limit. Such as what is your annual income, what is your age, how much debt you have, and what kind of job you do, i.e. are you a salaried person or a businessman? Also, credit history and credit score also play an important role in deciding the credit card limit.
When do banks increase credit limits?
If your credit score is good and you pay the dues on time, then the bank can automatically increase your credit card limit. You can also request to increase the limit according to your needs. In this case, banks also look at things like the ratio of your expenses and income. If everything is in order, they increase the limit.
Ways to increase credit card limit?
Banks themselves increase the credit limit from time to time if the customer's credit score is good and they make bill payments on time.
You can directly contact your bank or credit card issuer and request to increase your limit.
Many banks allow their customers to request to increase their credit limit through online platforms.
If your credit score (CIBIL Score) is good, then you are likely to get a higher credit limit.
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