How to Increase Credit Card Limit: Increasing your credit limit doesn't mean you should spend recklessly. Remember, this is the bank's money and you have to repay it, including interest.

How to Increase Credit Card Limit: Today, a credit card isn't just a plastic card, it's the key to your financial freedom. But have you ever wondered why your friend's credit limit is in the millions, while yours is limited to thousands? What is the scale used by banks to determine credit card limits? So, if you're looking to increase your credit limit, this news is very useful. Let's understand the full math behind credit limits .

How is the credit limit decided?

Banks examine your entire horoscope before granting you a loan. Three major factors play a role in determining your loan limit:

• The bank first looks at your monthly income. The higher your salary or business income, the lower the risk to the bank, and the higher the limit.


• Your credit score is your report card. If you've paid your past loans or bills on time, your score will be 750+. A high score means a green signal and higher limits.


• If half of your salary is going towards paying EMIs of your old loan, then the bank will hesitate in giving you a new limit.

An increased limit doesn't mean you should spend recklessly. Remember, this is the bank's money and you have to repay it, including interest.

Want to increase your limit? Try these 4 super ways

If your current limit is low and you want to increase it, then these methods will help you-

• Update salary slip

Has your salary already increased? If so, send your latest salary slip or IT return to the bank. Once the bank sees that your income has increased, they will automatically offer to increase your limit.

• Pay bills on time

This is the oldest and most effective method. If you consistently pay your bills before the due date for 6 to 12 months, the bank considers you a reliable customer.

• Take care of credit utilization

Let's say your limit is ₹1 lakh, don't spend the entire ₹1 lakh every month. Use only 30-40% of your limit. This shows the bank that you're not credit-hungry and that your management is excellent.

• Talk to the bank yourself

You can request a limit increase by calling the bank's customer service or through the app. If your record is clean, the bank will approve it immediately.

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