A credit card limit is the maximum amount of money that you are allowed to charge to your credit card. It is set by the credit card issuer and is based on a variety of factors, including your credit history, income, and debt burden. Your credit card limit is not the same as your credit score, which is a measure of your creditworthiness based on your credit history.
When you use your credit card, the amount you charge is subtracted from your available credit limit. For example, if your credit card limit is Rs. 10,000 and you charge Rs.5,000 to your card, your available credit limit will be Rs. 5,000. If you continue to charge purchases to your card and exceed your credit limit, you may be charged an over-the-limit fee. It is important to monitor your credit card usage and stay within your credit limit to avoid incurring fees and damaging your credit score.
Here are a few tips for increasing your credit card limit:
- Use your credit card responsibly: One of the most important factors that credit card issuers consider when setting your credit limit is your credit history. If you have a history of paying your bills on time and maintaining a low balance on your credit cards, you are more likely to be approved for a higher credit limit.
- Pay your balance in full each month: Paying your balance in full each month demonstrates to credit card issuers that you are able to manage your credit responsibly. This may increase your chances of being approved for a higher credit limit.
- Increase your income: Credit card issuers may consider your income when setting your credit limit. If you have recently received a raise or started a new job with a higher salary, you may be able to increase your credit limit by letting your credit card issuer know about your increased income.
- Ask for a credit limit increase: If you have been using your credit card responsibly and paying your bills on time, you can try asking your credit card issuer for a credit limit increase. Some credit card issuers may be willing to increase your credit limit if you have demonstrated that you are a responsible credit card user.
- Consider opening a new credit card: If you are unable to increase your credit limit on your current credit card, you may want to consider opening a new credit card with a higher limit. However, be aware that applying for too many credit cards in a short period of time may have a negative impact on your credit score.
The length of time it takes to increase your credit limit will depend on the credit card issuer and the specific circumstances of your request. In some cases, you may be able to receive a credit limit increase immediately, while in other cases it may take a few days or even a few weeks. If you are requesting a credit limit increase through your credit card issuer’s customer service department, the process may be faster. You may be able to request a credit limit increase online or over the phone, and the credit card issuer may be able to review your request and make a decision on the spot. On the other hand, if you are applying for a new credit card with a higher credit limit, the process may take longer.