Credit card users can only spend up to a certain amount for each billing period. This threshold is characterized by the credit card limit, which is a maximum value beyond which a cardholder will not be able to spend for a specific billing cycle.

How do financial institutions set your credit card limit?

This limit is set by the financial institution during the issuance of the card. Your credit card limit is determined based on the following factors –

• Annual income.
• Employment status.
• Outstanding dues.
• Credit score.

For a new credit card applicant who has not availed any type of credit previously, it is not possible for them to possess a credit score. In such cases, the card-issuing company sets a low credit limit which can be increased in later stages.

How to increase the limit of your credit card?

If you are looking forward to increasing the credit card limit of your card, make sure to consider the following tips –

1. Using your credit card frequently is one of the essential steps to convince your card issuer to increase your credit limit.
2. Do not be late on your monthly credit card bill payments as it harms your CIBIL score.
3. Provide your income details to the card company if your salary has increased recently. A hike in salary indicates you have a stable income and thus improves your creditworthiness.
4. If none of the above tips works out, it is advised to apply for a new credit card with a higher credit limit.

Credit cards such as the RBL Bank Credit Card offer several features and benefits that others don’t.

Bajaj Finserv also brings forth pre-approved offers that make availing financing less of a hassle. Such offers are also applicable to various other financial products such as personal loans, business loans, etc. Check your pre-approved offer by sharing your name and contact information.

With the help of the tips, you will surely be able to convince your card issuer to increase your credit limit.