Want to know how to increase your Bajaj Finserv RBL Bank credit card limit? Here’s how you can do so!
Note: RBL Bank Ltd. and Bajaj Finance Ltd. have stopped issuing new co-branded credit cards. However, existing cardholders can continue to enjoy the credit card benefits.
When you apply for a Bajaj Finserv RBL Bank credit card, the card issuer sets a credit limit on the card. This is the maximum amount of credit available to you, and you can make payments and purchases up to this limit. If you exceed the Bajaj Finserv RBL Bank Credit Card’s limit, the bank may levy a penalty known as the over-limit fee. Typically, the over-limit fee is 2.5% of overlimit amount and the penalty is ₹600 + GST (w.e.f. 9 Oct 2023).
The Bajaj Finserv RBL Bank Credit Card limit is decided based on several factors. These include:
Income Level
A higher income indicates greater repayment capacity, which can allow you to request an increase in the Bajaj Finserv RBL Bank credit card limit. Demonstrating a stable and sufficient income assures the issuer of your ability to manage higher credit.
Credit Score and Credit History
A high credit score and a strong repayment history increase the likelihood of a higher credit limit. Maintaining a positive credit history shows you are a low-risk borrower.
Existing Debt
If you have significant existing debt, the issuer may set a lower credit card limit to manage repayment risks. Reducing your existing debt can improve your chances of an increase in credit limit.
Employment Status and Stability
Stable employment and a regular source of income suggest financial reliability, potentially leading to a higher credit limit. Long-term employment with a reputable employer can further increase the possibility.
Other Credit Card Limits
High limits on existing credit cards indicate a strong financial profile, which may positively impact the limit on your new card. Responsible usage of current credit cards can help in the RBL Bank card’s limit increase.
Credit Card Usage
Using your credit cards responsibly by maintaining low balances and making timely repayments can lead to an increase in your credit limit. Frequent and responsible usage might also trigger an automatic limit increase.
Check out these factors below so you can use this information to ensure you become eligible for a higher credit limit.
Credit History
If your credit score is high and you have repaid your previous debts promptly, you are more likely to be eligible for a higher credit limit. This is because you will be deemed more creditworthy, thus minimising the risk for the credit card issuer.
Debt-to-Income Ratio
Your debt-to-income (DTI) ratio helps compare how much you earn and how much you owe in debt. The higher your debt-to-income ratio, the lower your credit card limit will likely be. This is because a significant portion of your income is already committed to other debts. So, taking on more liabilities in the form of a card with a higher credit limit can put a strain on your finances.
Other Liabilities
If you have other credit cards, issuers will also factor in the limits on those cards. The credit cues from those credit card issuers can help determine your Bajaj Finserv RBL Bank credit card limit.
Income
The nature and stability of your job influence your credit card limit. Stable employment and a higher income contribute to a higher credit limit, showcasing financial reliability.
The two ways in which your credit limit can increase are explained below:
Auto-enhancement
One way of having your credit limit increased is through automatic credit limit enhancement. This can be achieved by clearing your dues on time, maintaining a high credit score, and the frequency with which you use your credit card.
Limit Increase Request
You can reach out to the Bajaj Finserv or RBL Bank credit card customer service team. Alternatively, you can also visit the RBL Bank’s branch in person and submit your application. Make sure that you carry proof to support an increase in your income or a decrease in your existing credit.
Increasing your Bajaj Finserv RBL Bank credit card’s limit can enhance your financial flexibility. Here are some of the advantages:
Higher Spending Power
An increase in your Bajaj Finserv RBL Bank SuperCard’s limit allows for larger purchases without exhausting your available credit. This flexibility can be invaluable during emergencies or significant expenses.
Improved Credit Score
A higher limit can positively impact your credit utilisation ratio, boosting your credit score. Keeping your spending well below the increased limit shows responsible credit behaviour.
Better Rewards and Offers
With an enhanced limit, you can maximise rewards and cashback offers. This ensures you get the most out of your card without worrying about reaching your limit.
Reduced Risk of Over-limit Fees
The Bajaj Finserv RBL Bank credit card limit increase reduces the risk of exceeding the higher capping and incurring fees. It ensures smoother financial management and avoids unnecessary charges.
Increased Financial Security
A higher limit offers a safety net for unexpected expenses, such as medical emergencies or urgent travel needs. It provides peace of mind by ensuring you have financial support when needed.
Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.
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Frequently Asked Questions
What is the impact of exceeding the RBL Bank credit card’s limit?
Here is what you can expect if you go over the credit card's limit:
Exceeding your credit limit can result in over-limit fees, which can add to your financial burden.
Going over your credit limit can negatively affect your credit score by increasing your credit utilisation ratio.
Your card issuer may restrict further transactions until the balance is brought below the limit.
Transactions over the limit may attract higher interest rates, increasing your repayment amount.
Frequent over-limit transactions can lead the issuer to reduce your credit limit.
What are the benefits of increasing your Bajaj Finserv RBL Bank credit card limit?
Increasing the credit limit on your Bajaj Finserv RBL Bank credit card lowers your credit utilisation ratio and makes it easier to obtain loans in the future. It also gives you more credit to access in times of any financial emergency.
Is the Bajaj Finserv RBL Bank credit card’s limit different for every cardholder?
Yes, the Bajaj Finserv RBL Bank credit card limit is different for different cardholders. The credit limit depends on various factors like your income, existing debts, credit score, and debt-to-income ratio.
What happens if I exceed my Bajaj Finserv RBL Bank credit cards limit?
If you exceed your credit limit, you will have to pay the Bajaj Finserv RBL Bank credit card over-limit charges as set by the bank. Typically, the over-limit charges are 2.5% of overlimit amount.
What is the maximum credit limit on Bajaj Finserv RBL Bank credit cards?
The maximum limit on the Bajaj Finserv RBL Bank credit card varies from one card to another. It is also different for different applicants because the bank considers your income, credit history, debts, and other factors. The bank’s internal policies also influence the maximum credit limit on the credit card issued to you.
Can a higher credit card limit hurt my credit score?
A higher credit card limit itself won't hurt your credit score, but it can indirectly affect your credit score if you use a higher percentage of your available credit. This is known as your credit utilisation ratio, and it's a significant factor in determining your credit score.
What happens if I exceed my RBL Bank credit card’s limit?
If you exceed your Bajaj Finserv RBL Bank credit card limit, you may incur over-limit fees. This can negatively impact your credit score and lead to restricted usage of your credit card until the balance is brought below the set limit.
How can I request an increase in my RBL Bank credit card’s limit?
You can request a credit limit increase by contacting the RBL Bank customer care or by visiting a branch. Ensure you have relevant documents, such as proof of increased income or improved credit score, to support your request.
Is it possible to request a RBL Bank credit card’s limit increase through SMS?
No, the SMS facility related to Bajaj Finserv RBL Bank credit card limit increase is only meant for notification purposes, not for requests.
