How to Increase Your Credit Card Limit (5 Useful Tips)

Credit card issuers increase your limit based on your financial profile and creditworthiness. They look at factors like your income, existing debt, number of cards, job status, repayment history and credit score. 

A higher limit gives you more spending power for shopping, essentials, food, travel and entertainment. Want to boost your credit limit? Here are some simple tips to help! 

Read to know the factors that impact your credit card limit and how you get a higher limit.  

What is a Credit Card Limit? 

A credit card limit is the maximum amount you can spend using your card. It’s set by the bank based on factors like your income, credit score, and repayment history. Staying within this limit and paying bills on time helps maintain a good credit score. If needed, you can request a higher limit, but approval depends on your financial profile. Always use your credit card wisely to avoid overspending and high interest charges. 

How Do Issuers Decide Credit Card Limits? 

Before finding out the tips to increase the limit of a credit card, you must know what factors determine it. Here are some factors that influence your card limit: 

• Credit Score 

Having a high credit score assures card issuers of your capacity to repay your dues. With a good CIBIL score of 750 or more, you can get a high credit card limit.  

• Payment History  

Issuers consider past repayment behaviour an indication of future behaviour. As such, a good history can get you a higher limit and vice versa.  

• Debt-to-Income (DTI) Ratio 

If a high percentage of your income goes towards paying existing debt, the credit card issuer may not approve a higher credit limit. This is because it implies that you may have difficulty paying your future credit card bills on time due to limited finances.  

• Type of Credit Card 

Banks offer several cards with different limits and features. As such, your limit will also vary depending on the card you choose.  

For example, a regular credit card will have a lower credit limit compared to an elite or premium credit card.  

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How Credit Card Limit Affects Your Credit Score? 

There are several factors that affects your credit score. One of them is credit card limit, understand how: 

• Higher Limit, Better Utilisation Ratio- A higher credit limit can improve your credit utilisation ratio if spending remains low. 
• Low Utilisation Boosts Score – Using less than 30% of your limit helps maintain a good score. 
• Maxing Out Lowers Score – Spending too much of your limit increases your utilisation and can hurt your credit score. 
• Regular Limit Increases Help – Getting periodic limit increases while maintaining controlled spending improves your score. 
• Frequent Limit Reductions Can Hurt – A reduced limit can increase your utilisation ratio and lower your score. 
• Credit Mix & History Matter – A higher limit with responsible usage adds to a strong credit profile. 

How to Improve Credit Card Limit? 

Knowing how you can increase your credit card limit will help you boost your purchasing power. Some of the strategies you can leverage include: 

• Repaying Your Bills on Time 

Showing that you can manage your finances well by repaying bills on time is among the simplest ways to increase the credit limit of your card. It gives issuers the assurance that you can pay your dues responsibly, thus making you eligible for a higher limit. So, set up auto-pay for on-time payments and avoid paying only the minimum amount due on your card.  

• Avoiding Maxing Out Your Credit Limit 

When you regularly utilise your limit to the fullest, the issuer may not increase the limit of credit cards. This is because it implies a high dependency on credit and a high risk of non-payment. Ideally, you should use only 30% to 40% of your limit in a billing cycle.  

Also Read: Benefits of credit card 

• Showing an Increase in Income 

Income is another important factor in determining your credit limit, as it showcases your ability to manage credit. Therefore, you can provide updated income proof when requesting your card issuer to increase the credit limit.  

• Getting a New Card 

If your current card issuer does not approve of an increased limit, consider getting another credit card with a higher limit. However, ensure you have the credit profile to support your application and meet the eligibility requirements of the issuer.  

• Waiting for an Automatic Increase 

Sometimes, the card issuer automatically increases the credit limit based on how you use the card. So, you can also patiently wait for an update on your limit.  

What are the Benefits of an Increased Credit Card Limit? 

• Higher Spending Power – Make bigger purchases without worry 
• Better Credit Score – Lower credit utilization can improve your score 
• More Rewards & Cashback – Earn extra benefits on increased spending 
• Improved Emergency Fund – Extra credit for urgent expenses 
• Better Loan Eligibility – Higher limits show strong creditworthiness 
• Lower Interest Rate Offers – Banks may offer better loan deals 
• Increased Financial Flexibility – Manage expenses more smoothly 

With these tips, you can increase the credit limit on your card. Remember, you must maintain discipline and show proof of being a responsible credit cardholder to not just increase the limit, but also to enjoy the benefits of your card.  

For an enhanced experience, choose the Fibe Axis Bank Credit Card. With this card, you get higher security as it is a numberless credit card that links to your UPI ID. Moreover, it is a lifetime-free card offering exclusive benefits that make every transaction rewarding. Download the Fibe Instant App or register on our website to apply now!  

FAQs on Increasing Credit Card Limit 

How can I increase my credit card limit to the maximum? 

To increase the credit limit, you must have an excellent credit score. Moreover, if you can provide proof of higher income, you can request the issuer to increase your limit. Remember to use the card responsibly to improve your chances of a better limit.  

How to get a ₹1 lacs credit card limit?  

Getting a credit card limit of ₹1 lacs or more depends on many factors, such as your CIBIL score, income, employment status, existing debt, etc. You can also request the issuer to increase the credit limit once you showcase responsible use of your card.  

What is the highest credit card limit?  

The highest credit card limit available on a card varies for the issuer and credit card type. However, you can get credit cards with a limit of ₹4-8 lacs in India. This amount can go over higher based on your income and creditworthiness.  

What is a good reason to increase the credit card limit?  

When you increase the limit of a credit card, you have access to more funds for all your needs. As such, a good reason to request a boost in your limit is to increase the availability of funds at your disposal.