Babaria Media - How to Increase Credit Card Limit?

How to Increase Credit Card Limit?

Frustrated with your  card limit, then these 7 hacks to will help you if you are searching for how to how to increase credit card limit.
Credit cards are nothing but a plastic card that is issued by the bank. Actually credit card is something much more than a plastic card.
Credit cards allow you to borrow money from a bank for making transactions.
These transactions can be anything from buying 3 meals of the day to buying a car, from buying a book you love or a yacht (you must be a billionaire if you are buying a yacht).

As long as you pay back the money you borrowed from the bank within the grace period of 25-30 days, you can buy anything from your credit card. If you fail to pay back the amount, you will have to pay an interest on the money you borrowed.
Every credit card is given a limit under which you can spend money and do transactions.

With a new credit card the credit limit is very low. As you start using the credit card and pay back the transactions, the bank keep a close watch and they get a fair idea about how much you spend and how much credit limit will be sufficient for you.

Banks keep a tab on your transactions and review your payment history and accordingly increase the credit limit on your card. Based on your usage the bank increases the limit every few months.
However, if you have a need of high volume transactions and you need to spend more than your current limit, then you can put up a request with the bank to increase your credit limit instead of waiting for the automatic limit enhancement call.

Credit Card and their Limits - How to increase credit card limit

Ways to Increase the Limit of your Credit Card
Remember that once your card is at least 6 months old, only then you can try out these methods to get your credit limit increased to your favorable amount.

1. Prove Increase in Income

If you are working class individual and manage your household on your income then this method can be tried out for results. You can prove to the bank that your income has increased to a considerable and decent amount.
You can forward your salary slips for last 3 months or the IT return to the bank for their consideration. This method does work wonders most of the time and you can expect a decent increase in your credit limit.

2. Reduction in Liabilities

This is also an important step to take to get a raise in your credit limit. At the time of applying for a credit card, chances are that you took a home loan or personal loan.
If you now have a closure on the loans, you can forward the loan closure agreements to the bank and request for a better credit limit. You can support your claim by saying that since you are not paying any loan EMI, you have a better spending capability than before.

3. Comparison of Credit Limits with other Cards

You might be using two or more different credit cards from different banks. Not every bank has the same credit limit, and you can use this in your favor when asking for a raise in credit limit.
If you have better credit limit on a credit card you are using, tell the bank about it. If you have a credit limit of 80K on your SBI credit card and 2Lakhs on HDFC credit card, you can forward your HDFC statement to SBI and ask for an equal limit if not increased.

4. Upgrade your Credit Card

In some cases you can ask the bank if you are eligible for an upgrade on your credit card. You can upgrade your card from classic to premium if you are eligible for the same. Remember that if you are eligible, then you can also request for enhancement in your limit along with your credit card upgrade.

5. Splurge more with your Credit Card

The basic requirement and the reason to avail more limit on your credit card than the existing credit limit is because the existing limit is not sufficient to do the transactions.
If that is the case, then you should spend as much as possible on your credit card and pay the amount back on time to prove that you are capable of handing more limit. The plus point would be here if you have taken a loan on your card and you have paid back the sum without delay.

6. Travel to Foreign on your Credit Card

Bank love people who spend and they love people even more when they spend on foreign trips. They have a special soft corner for them.
The reason is simple; banks earn extensively on foreign currency markup fees for every transaction you make outside of India. The logic here is that if you have the ability to travel abroad then your net worth is pretty decent and you deserve an enhanced limit.

7. Wait for a Periodic Increase

Patience is the best way to get the results. If you bear patience, there are chances that your credit limit of your credit card will increase automatically according to the norms of the banks.
In some cases I have seen people getting a 100% raise in their credit limit when they left the situations as it is and did not put stress on increasing their limit.

Credit cards are an important aspect of life for many. Many individuals use credit cards for all their transactions, be it purchasing groceries, getting fuel for their vehicles or purchasing a house.
While I am not against the use of credit cards, but my opinion is that one should use credit card in limit and only if they can pay back the borrowed amount within the race time frame.
Non repayment of the amount leads to penalty and there are chances that your credit limit might get reduced by the bank.
These tips for increasing the credit card limit is applicable on almost every bank, be it HDFC, ICICI, SBI, Kotak and Axis banks. These tips can be used for HDFC credit Card Limit Enhancement. If you are wondering how to increase credit card limit of ICICI bank then if you use the tips mentioned in this article, the ICICI credit card limit will increase.