When issuers approve your credit card application, they assign you a credit limit that indicates the maximum amount that you can utilise. This credit limit is determined based on several parameters such as your creditworthiness, repayment behaviour, and income. Issuers try to assign a credit limit that you can afford to repay.
A low credit limit doesn’t give you enough leverage to spend. It also has the power to damage your credit score owing to a high credit utilisation ratio. Note that a higher limit is good for your credit score only when you don’t use up your entire limit. Thus, the only way to make higher spends using a credit card and safeguard your credit score is to request a credit limit increase. Read on to know how to increase a credit card limit below.
- Pay your credit card dues regularly: Issuers monitor your credit card account on a regular basis. If they notice that you pay your credit card dues on time consistently, they will offer you a credit limit increase. Waiting for your issuer to increase your credit limit is your best bet if you are a new credit card user.
Additional Read: How to check Credit Card balance online
- Increase your security for secured credit cards: Issuers offer secured credit cards for individuals with no credit history or a bad credit score in exchange for collateral. In this case, the credit limit depends on the value of the collateral. So, if the limit doesn’t suffice your needs, you can ask for a limit increase by pledging additional security. Conversely, if the issuer sees that you have been repaying the dues responsibly, they may not ask for additional security and offer a limit increase themselves. So, the key is to use your credit card diligently.
- Request a limit increase based on your repayment history: Instead of waiting for the issuer to reach out to you, approach them for a credit limit increase. You can do so by logging into your account and submitting a request for a limit increase. Alternatively, you can also contact your issuer by using their credit card customer care number and speak to a representative. Either way, the issuer will ask you for the reason for the request and whether you have the financial security to repay the additional amounts.
- Wait for an increase in your income: A higher credit limit gives you a liberty to spend more, which translates into a higher credit card bill. Therefore, the best time to request for a credit card limit increase is on receiving an income hike. This way, your issuer will be assured that you have an increased financial backup to repay your dues.
- Use your card: Use your credit card regularly and pay your dues on time to increase your chances of a credit limit increase.
- Apply for a new credit card with a higher limit: While all these tips are good ways to increase your existing card's credit limit, you can also apply for a new credit card provided you have enough income and a good credit score. Though this will not increase the limit on your current credit card, it will certainly add to your overall purchasing power.
When scouting for a credit card, look for one that gives maximum benefit and adds to your convenience. For instance, the Bajaj Finserv RBL Bank SuperCard is a versatile credit card that combines the power of four cards in one. With this card, you can make interest-free ATM withdrawals, avail interest-free emergency loans, and also convert your purchases into EMIs.
To apply online hassle-free, check your pre-approved credit card offer from Bajaj Finserv to view your customised deal and accelerate your approval. All you need to do is submit your name and contact number to enjoy instant approval.
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.
*Terms and conditions apply