How is credit card limit decided

If you fall within the eligibility criteria listed below, you may have a pre-approved offer for our cards.
RBL Bank Credit Card
4 minutes
14 Dec 2023

We often ponder over the factors that go into deciding the card limit approved by the financial institution or creditor. Let’s demystify the world of credit cards and help you with information that comes in handy when you apply for one. Since we offer a pre-approved limit to you on Bajaj Finserv RBL co-branded credit cards, we assess the following information shared by you:

Criteria 1: Age

We offer a credit card with a pre-approved limit to both our existing and new customers who fall within the age bracket of 25 and 65 years old.

Criteria 2: Regular income

Your income is an essential factor that decides your card limit. For us to extend a card, you must have a consistent income either through salary or a self-owned business. It may also depend on your earning capacity; if you have a higher income, your credit limit may be higher. But you must note that if you have other parallel loans, your chance of getting a card offer is limited.

Criteria 3: Credit score

Your credit score is the most significant norm for us to consider when deciding. Organisations like credit bureaus (TransUnion, CIBIL, Experian, etc.) are accountable for capturing your credit score. They keep a record of your loans, credit cards, and payback history. If you have a good credit score, you not only have a better chance of being approved but can get a higher limit.

Criteria 4: Repayment history

Making on-time payments of your EMIs is a healthy habit that proves that you are good with finances. Your credit score will increase if you are punctual with your existing EMI payment. It may suffer if you delay even one EMI.

Criteria 5: City of residence

The city you reside may influence your credit card limit. If you are in a metro city, your offer could be higher than someone in a tier 2 city. This is because we assume that, in most cases, the earning capacity is much higher in metros.

Difference between Total Credit Limit and Available Credit Limit

Total Credit Limit: Your bank has established a maximum credit limit for you to use with your card. Your card will stop accepting further payments if you go above this amount, and the bank will charge you a fee for exceeding the limit.

Available credit limit: The amount of credit you have remaining at any one time after all previous charges have been made is known as your available credit limit. If you spend Rs. 20,000 and your card has a total credit limit of Rs. 80,000, your remaining credit limit is now Rs. 60,000.

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