How to Increase Credit Card Limit

How to Increase Credit Card Limit

Many people who have a credit card. whether it is an old credit card or they have recently applied for a new credit card. want to increase their credit limit. But they do not know how a credit limit can be increased. Know five such ways through which you can increase your credit limit.

First of all, banks issue credit cards only to those people who need a loan, who need money, and most importantly, who have the capacity to repay ,that is, the ability to repay a loan or pay credit card bills.
Now how will banks know whether the person in front of them can repay a loan or pay bills? That is why income proof is asked from you and ITR returns are checked.

Now, people who do a job and whose salary is not very high. suppose they earn ₹15,000, ₹20,000, or even ₹25,000 per month. Still get a credit card, and many times they also get a credit card with a good credit limit, because their income is stable.

On the other hand, people who do business have to submit higher ITR returns because their income is not stable. That is why only if they earn ₹50,000–₹60,000 per month do they get a credit card.

Now, when you get your first credit card, after that you can easily apply for a second, third, or fourth credit card. After a few months, you can also get credit cards very easily on a card-to-card basis.

But the question is, when we get our first credit card or if we already have an existing credit card, how do we increase the credit limit on it?

Increasing the credit limit is important because it maintains liquidity for you. In today’s time, if you need more money, you can use a credit card because you have a higher limit. The second thing is that you can always maintain your credit utilization ratio properly.

Now I will tell you five such ways through which you can increase your credit limit.

Automatic Credit Limit Adjustment

In this, you do not need to do anything from your side. You just need to use your credit card properly. Banks themselves increase your credit limit.
Proper use does not mean that you use the full limit. If your credit limit is ₹50,000 and your income is ₹30,000, and you are fully utilizing ₹50,000 every month, then the bank will feel that you are completely dependent on the credit card. In such a case, the limit is not increased.
You should always keep your credit utilization between 30% and 40%.

Salary Increase

If you have applied for a new credit card and after a few months your salary increases — for example, it becomes ₹50,000 — then you can mail the bank or visit the bank and inform them that your income has increased and you want to increase your credit limit.
This is not a 100% guaranteed method, but many times the limit is increased on this basis.

Card-to-Card Basis

Suppose you have an HDFC Bank credit card with a limit of ₹1 lakh, and you want to increase the limit of your ICICI Bank credit card, which currently has a limit of ₹50,000.
Then you can show the HDFC card statement to ICICI Bank and tell them that you have received a limit of ₹1 lakh from another bank. Many times, the credit limit is increased through this method as well.

By Increasing Your Credit Score

If you increase your credit score within 3–4 months, then your credit limit can also increase.
For this, you need to keep your credit utilization at 30% and make payments before the due date.
Additionally, you can take a small loan (₹1,000–₹1,500) from genuine instant personal loan apps and repay it immediately. Because of this, NBFCs report to credit bureaus and your credit score increases.

Keep Liabilities Low

When you are trying to increase your credit limit, at that time you should not have too many loans in your name.
If you have a lot of liabilities, the bank will not trust you. So first reduce your loans and liabilities, and then approach the bank. In such cases, banks easily increase your credit limit.

So these are the five ways through which you can increase your credit card limit.
I hope you have received some useful information about credit card limit increment.