Credit Card Limit

It's a common myth that you can spend an unlimited amount on a credit card. The truth is that your spending is bound by a certain credit card limit. It is the pre-given purchase limit of a credit card. In simple terms, it's the maximum amount you can spend on your credit card. This maximum limit is set by your lender and is different for different applicants. 

Credit card issuers assess several key factors like your age, income, existing debt liabilities, credit history, and CIBIL score to arrive at this limit. In fact, the type of card you choose and the lender’s internal policies also impact the sanctioned credit limit. While it's set by the lender, credit limits are not static. With prudent credit card use and debt management, you can increase your credit score and enjoy a higher credit card limit. 

However, knowing your current credit limit is essential to manage your expenses and debt ratio. Regularly breaching the credit limit can result in poor credit scores, making it difficult for you to secure loans in the future. 

To know more about how to check your credit card limit, how to increase your credit card limit and more, read on our website www.bajajfinservmarkets.in.

Wondering how to check your credit card limit? Well, the process is pretty simple and easy. Here’s a list of ways you can review your credit card limit:

Option 1: Via Net Banking 

You can check your credit card limit via the net banking portal of your bank. You simply need to log into your account with your credentials and go to the credit card section. Here, you can pick the card you wish to review. You will find the maximum credit limit for the card listed under the ‘Credit Card Account Summary’ option. 

Option 2: Via Customer Care

You can call the bank’s credit card customer care number to instantly retrieve your credit limit details. Once the customer care executive verifies your identity, this information will be communicated to you. 

Option 3: Via SMS and Missed Calls

Some lenders also offer instant credit limit checks via SMS and missed calls. The SMS code for lenders varies, but most have a dedicated SMS string code followed by the last digits of your card. Similarly, you can also check your credit card limit with a missed call from your registered number if your current lender offers this service. 

the answer is simple – improve your credit score. For this, you have to pay all your credit dues on time, make the best out of your rewards and offers, utilise your card efficiently, and more. Here’s a detailed look into it:

So, to increase your credit limit, all you have to do is take steps to increase your credit score. 

This is possible if you pay all your credit card dues on time, within the due date specified. If you have any other loans, ensure that you repay the EMIs for those loans on time. Also, check your credit report for errors, if any, and get them rectified promptly.

• Use Your Card Wisely: Your credit utilisation ratio plays a significant role in determining your credit limit. It is the ratio between your credit card limit and the amount you spend on the card monthly. In fact, you should cap monthly spending on the card to 30% of your credit limit. Maintaining this ratio indicates that you are in control of your finances and, thus, a low-risk borrower.  

• Make Timely Bill Payments: Lenders base your credit card limit on your CIBIL score. And nothing affects your CIBIL score more positively than making timely payments. If you keep clearing your outstanding credit card dues in full before the due date, your CIBIL score will automatically improve. This will push the lender to increase your credit limit. 

• Contact Your Lender: You can directly contact your issuer and request for a credit limit hike. However, if you do so, be prepared to furnish valid proof to back your request. For instance, if you’ve approached the lender for a higher credit card limit on account of an annual raise, keep your new payslips handy. 

• Apply for a New Card:If you’ve been clearing your bills on time and maintaining your credit utilisation ratio, you might qualify for a new credit card with a higher limit. With both cards combined, you will have access to a higher aggregate credit limit.