Enhancing Your Credit Card Limit: How To Take The Plunge

Are you wondering how to increase credit card limit on your existing credit card and increase your purchasing power? Your credit card gives you convenience and flexibility while you make purchases, small or large, and allows you to pay back later. However, this freedom has a limit. For instance, if your card has a limit of ₹1 lakh, you can spend up to ₹1 lakh using it.

The issuer sets your card’s limit when you apply for it. This is your maximum purchasing limit on your credit card, which is supposed to be best suited to your ability to pay bills on time.

Many factors affect your credit card limit. Your income, credit score, and type of credit card you have all play a part. But this limit is not written in stone! You can ask for an increase based on your growing needs and financial capacity.

An increase in the credit card limit is possible if you have been paying your dues on time, keeping your credit profile in check, and have a higher income than when you first applied for a card.

You certainly don’t want a lack of funds to hamper your lifestyle. If you can afford a raise in your limit and the financial company agrees, what is stopping you from taking up the offer? In fact, increasing your limit helps you decrease your utilisation of credit and increase your credit score.

So when the question of how to increase credit card limit arises, here are ways you can go about it:

Send the credit card company a notification about an increase in your income. Higher earnings can make you eligible for an increase in your credit card limit.
Check if you have an offer to increase your limit as issuers normally send such notifications once a year. Increase your chances of receiving such offers by managing your card well and paying your dues on time.
Make sure your credit score is good so that you can get an increase in your limit. By clearing off existing debts, avoiding late payments, and reducing your utilisation ratio, you can ensure it is high.
Ask your issuer for an increase in your card’s limit by placing a request via customer care. Keep your income proof ready as you will need to prove your ability to repay bigger bills.

Don’t forget to also consider these dos and don’ts when applying for a rise in your card’s limit:

Don’t max out your credit card. A higher credit limit lets you spend more without having a high credit utilisation ratio. Avoid using up the entire credit available on the card. Keep your credit score high by staying under the limit.
Examine your finances and then make an informed decision about applying for an increase in your credit card limit. Make sure the timing of the application is right. Apply for a raise in the limit if you have recently got a pay hike, have a better credit score than before, have a consistent repayment history and can afford the upgrade.
Refrain from applying for an increase if you have just applied for a loan or lost your job as this will likely not help you get approval.

If your credit card company doesn’t approach you, you can apply for it yourself. If your salary has increased, your repaying capacity will increase in proportion. With a higher limit, you can upgrade your lifestyle.

Follow these modes to apply for a higher limit:

Send a request via email, attaching income proof to support your request
Ask for a higher limit via the credit card mobile app or logging into your credit card account online
Call the customer care number to request a higher limit
Visit the issuer’s branch and submit a written application for a higher limit

If your credit card issuer sends you the offer first, you must evaluate your monthly expenditure before accepting the offer. Make sure you will not overspend or be reckless with a higher limit, as this can adversely affect your finances. Create a new budget and ensure you can pay off your bills on time to avoid defaulting to avoid high interest charges.

You can also apply for a new credit card to increase your overall credit limit. If you think that a higher limit may lure you to spend more, consider opting for the One Credit Card. This premium metal credit card offers many features to help you spend responsibly while benefiting from a range of perks.

You can use the full-stack One Credit Card app to set spending limits for different spending categories. This app also allows you to analyse your spending habits to become a more responsible credit cardholder.

You can also earn 5X rewards on your top 2 spend categories with the One Credit Card. If you like to travel, you can save more with air ticket credit card offers from partners like MakeMyTrip, Ixigo, Goibibo and more. Along with a range of other offers on food, electronics, and more, this card comes with zero joining and annual fees. Explore all its benefits and apply now to enjoy enhanced financial freedom!