Effective Ways to Increase Your Credit Card Limit- A Detailed Synopsis

Understanding Credit Card Limits

First, let us understand what a credit card limit is and how it is determined. The maximum amount that can be spent through your credit card is known as credit limit and it is generally decided by your bank. The credit limit eligibility is not a simple calculation, it entails several factors based on your financial history, CIBIL score etc. These factors can be based on the criteria appended below.

• Your income decides the ability to repay the credit card bill. It is therefore an important factor that influences your credit limit.
• If your debt-to-income ratio is low, that is, the number of your debts is less, you shall get a higher credit limit.
• It is important to have a clear history of on-time payments. This can be a deciding factor for a higher credit limit.
• If your existing outstanding debt is more, your credit limit can be impacted.
• If your CIBIL score is more than 750, you have a high chances of getting a better limit.

Benefits of Increasing Your Credit Card Limit

• Your credit utilization ratio can be significantly lowered with a high-limit card, which in turn can enhance your credit score.
• You are better equipped to handle exigencies or unwarranted expenses with higher limits.
• Often high-limit credit cards offer lucrative benefits like offers, vouchers, reward points and a lot of other perks. Adani One ICICI Credit Card is one such card which comes packed with a host of travel-friendly offers.
• You are empowered enough to spend without emptying your bank account, even if you are running low on money on lean days.

Ways to Increase Your Credit Card Limit

Increasing your credit limit is not that complicated. If you are looking to get it extended, from any bank like ICICI credit card, you can do so by following these steps.

1. Check Your Eligibility: It is important to be aware of your eligibility before you reach out to the card issuing authority. We suggest you go through the criteria laid out by the bank. These aspects have already been covered above. You should have a good credit score, income range, and robust bill repayment history.

2. Request a Credit Limit Increase: The credit limit increase can be requested through the following methods.

• You can drop in your request through the online banking system or bank app. Just log in with your credentials, go to the credit card section, click on manage credit limit, enter your desired credit limit and submit. The bank will assess your credentials and make the changes if you fit in the category.
• Calling customer care service on the toll-free number and requesting an increase on the limit of your credit card also works.
• You can also drop an SMS to the bank and request an increase. The details of the number and message body can be found on the respective bank’s website.

3. Provide Updated Financial Information: It is recommended that you give more information about your financial history in detail to allow the bank to consider your request. The details can include the following.

• Your current salary slips, and bank statements plus any documents stating your salary increment, annual promotion etc.

4. Demonstrate Responsible Credit Use: The issuing authorities are more likely to approve your credit card limit increase if you have a worthy credit score and comply with the following-

• You have been consistently paying your dues or at least the minimum balance on time without any default history.
• It helps if you keep your credit utilization below 30%. For example- your credit card limit is ₹20,000 and your card bill is ₹5000, which is 25% of your credit limit. This is a reasonably good utilization ratio that can lift your credit score.

5. Leverage Automatic Limit Increases: A lot of banks keep checking the financial behaviour of the customer and if the cardholder exhibits traits like responsible card management, timely bill repayment, low debt and a high CIBIL score, an increased credit limit is automatically offered by the authorities. Check with your bank for more information on it.

Additionally, here are some steps to increase the credit limit of your credit card.

• Use your Card Regularly: Use your credit card as a primary payment method for your purchases. It presents a positive picture of the bank and shows you are using your card, which may prompt them to offer a higher limit.


• Opt for High-Value Transactions: Any major spending should be made via credit card, whether it is buying any high-end electronic item, booking your trips or shopping. This will present a case to the bank that you need a high-limit card for your purchases.


• Maintain a Strong Credit Score: Your credit score is the foremost factor in getting a credit card. Therefore, ensure your credit score is spotless and there isn’t any major discrepancy in your finances.


• Reduce your Debt: Always consider your ongoing loans or any other EMIs before committing to a high-limit card. It might add to your financial woes if you don’t use it wisely.
  
  There can be substantial benefits if you increase your card limit especially if you have Adani One ICICI Credit Card. In addition to better purchasing power, and lucrative offers, you can also enjoy airport lounge access, exclusive airport services, travel vouchers and discounts on Adani One through Reward Points.
  
  However, it is always wise to understand when to request an increase rather than doing it merely for your mindless squandering. Remember, responsible credit use is key to maintaining a healthy financial profile and enjoying the full benefits of a higher credit limit.