Credit card debt is a major concern for many Indians. It can be defined as the amount you have paid towards your outstanding bills, which you owe to the bank. Credit card debt can be used without worrying about its impact if used properly, but it can become unmanageable if not managed carefully and timely. The best way to avoid this is to increase your credit card limit so that you are able to make large purchases when required.
How To Extend Credit Card Limit ?
If you want to increase your credit limit, the best way is to talk to the bank via a phone call or an app.
You can also write a letter requesting for a credit limit raise. However, it is better if you speak directly with your bank as they have more information about you and can help you better than what is written in any letter mailed by them. They may ask why do you need more money? You should give them reasons such as pressing medical bills or some family emergency that requires immediate financial assistance from the bank.
1. Contact your bank via the app or call the toll-free number, request for credit limit hike.
- Contact your bank via the app or call the toll-free number, request for credit limit hike.
- Give reasons for increasing your credit limit and mention that you will be able to make payments on time as well as repay the loan in a timely manner in future.
- The bank will do a CIBIL check before agreeing to increase your credit card limit, which will take about 7-10 days to complete this process after which they may not agree to increase it further based on the results of their internal assessment and review process (IRPR).
- You will also have to share income proofs like salary slips, Form 16 etc., so that they can evaluate if you’re capable of repaying loans without defaulting on payments or any other issue related with managing finances
2. You may be asked to give reasons for increasing your credit limit.
- Give reasons for increasing your credit limit. It’s important to have a good reason for wanting to increase your credit limit, so be sure to come up with some when you call. Your bank may ask why you want them to raise the limit and what it will be used for. Here are some examples:
- I’ve been paying off my card each month and have been actively using it responsibly, so I’d like a boost in terms of available credit so that I can continue using the card without worrying about going over my limit or incurring extra fees.
- If there is an upcoming purchase that requires more than $1,000 worth of spending power (for example, buying a car), please consider raising my limit by $4,000 as soon as possible so I’m prepared for this expense without having to worry about being declined at checkout due to insufficient funds.”
3. The bank will do a CIBIL check.
The next step is to check your CIBIL report. A credit score report is a three-digit number that represents a person’s creditworthiness and can be used for anything from checking eligibility for loans to insurance premiums and even the rent you pay. A person’s credit score is determined by a number of factors, including their payment history, amount of debt, and length of credit history. Depending on how well you manage your finances and make payments on time, your score increases or decreases accordingly.
A high score reflects good financial habits—proving that you are responsible with money—while a low or medium range indicates some room for improvement (or it could mean that you feel like being irresponsible). Similarly, if someone has no previous experience with financing but has an excellent pattern of paying bills in full each month without missing any due dates then they may qualify for an unsecured line of credit on their first try!
4. You will also have to share your income proofs, not just salary but all sources of income such as rental income, interest, etc.
While you are expected to provide your salary slips and PAN card, the income proofs should be more than just the last few months.
You should be able to show proof of income for at least six months in order to get a higher credit limit. The bank will also check if your income is stable and regular. If there is any dip in your earnings, it indicates that you might not be able to handle the additional loan amount responsibly. Therefore, it makes sense for banks to ensure that you earn enough, so they can extend more credit without worrying about defaults or bad loans.
5. If you are eligible, the bank will extend your credit card limit and send an SMS with the new details on your mobile number registered in the bank records.
If you are eligible, the bank will extend your credit card limit and send an SMS with the new details on your mobile number registered in the bank records. You can check your credit card limit online or by logging into your account on their website. Your credit card limit is a maximum amount that you can spend on your credit card in a month.
Read this article to know how you can increase your credit card limit by contacting your bank!
If you have a credit card and want to increase your limit, there are many ways to do it.
A credit card can be an excellent financial tool when used properly. If you have a good credit history but are not yet eligible for the highest available limit, it’s important to take some time to understand what factors affect your ability to borrow from your bank or issuer.
First things first: You’ll need a solid financial history with your current lender before they’ll consider increasing your line of credit (LOC). Credit checks are typically used by lenders for new applications or requests for increases in LOCs. This means that if you’ve had at least one open account with a major creditor on file for at least six months (not necessarily consecutive), then it’s likely that this particular lender will approve an increase request made by mail or phone if applicable—assuming all other criteria are met as well!
If you have a good credit score and enough income to support your credit usage, then you will be eligible for a credit card limit increase. However, if you are not happy or satisfied with the bank’s decision and want to switch to a new issuer, then do some research before applying for another card.