Apply for Credit Card!
A Credit Card allows you to purchase products and pay for services without immediate cash. You can also use it for
withdrawing cash from an ATM, even if you don’t have the required balance in your Savings Account. All this is
possible up to the credit limit permitted on your Credit Card. This limit is restored on a monthly basis, provided
you clear your dues within the time allowed for it. This is the ideal and responsible way to use a Credit Card.
As the first step in using your Credit Card to the optimum is to understand the maximum credit limit on the Credit
Card, how it is computed, and what can be done to increase it.
Maximum credit limit on Credit Cards in India
The Reserve Bank of India (RBI) has not specified an overall maximum limit on Credit Cards. Banks determine the
maximum credit limit on a case-to-case basis based on their internal policies and the cardholder’s creditworthiness.
However, according to the guidelines issued by the RBI, the credit limit of a Credit Card cannot be more than twice
the monthly income of the user.
Elements that influence Credit Card's maximum limit
The highest limit of a Credit Card depends on the bank's internal risk policies and various factors that reflect your
creditworthiness:
- Credit score: Your credit score reflects how responsibly you have handled credit in the past.
If you have a high credit score, you will likely get a high maximum credit limit.
- Repayment history: If you have paid your Credit Card bills on time in the past, your maximum
credit limit will be higher.
- Income: If your income is high and stable, you are more likely to get Credit Cards that offer the highest limits.
The process of applying for a credit-limit increase is also simple and the Credit
Card interest rates are quite competitive.
Increasing the maximum credit limit
You can get a higher credit limit on your Axis Bank Credit Card in two ways.
Option 1: Accept your pre-approved credit limit increase offer
- Step 1: Check if your bank has sent you a pre-approved offer to increase your Credit Card
limit via SMS or email. If it has, you can accept it without submitting any documents needed for a Credit Card.
- Step 2: Type CLE and the last 4 digits of your card number and send an SMS to 5676782 from
the mobile number registered with Axis Bank. You can also call the toll-free number 18604195555.
- Step 3: Discuss your increased credit limit with the bank officials and complete the
formalities.
Option 2: Apply for a credit limit increase with income documents
- Step 1: Make sure that you match the eligibility criteria for a credit limit increase. This
includes minimum monthly income, duration of Credit Card use, etc.
- Step 2: Talk to a customer care executive at Axis Bank and discuss the procedure and your
eligibility for a credit limit raise.
- Step 3: Submit your income proof such as salary slips and income tax returns along with other
documents.
After completing the process, you may get a credit limit increase, subject to the bank's policies and your
eligibility.
Also Read: How
to check Credit Card limit
Conclusion
Banks set maximum credit limits on Credit Cards based on your creditworthiness. The limit depends on the risk
assessment done by the bank for each card. If you want a higher maximum credit limit on your Credit Card,
demonstrate a good income, use your Credit Card responsibly and pay your bills on time.
Don't have a Credit Card yet? Apply for an Axis Bank Credit Card and get exciting discounts, cashback, airport lounge
access, and more. Apply for a Credit Card online to get instant loans or convert your purchases into EMIs using your
card.
FAQs
What is the maximum credit available on a Credit Card?
The maximum credit limit on a Credit Card varies based on income, credit score, credit history, existing debts, and the card issuer's policies. A higher income and better credit score typically lead to a higher credit limit, while substantial existing debts can reduce it.
Can we use a 100% limit on a Credit Card?
While you can technically use 100% of your Credit Card limit, it's not advisable. Doing so can adversely influence your credit score because of a high credit utilisation ratio. Additionally, maxing out your card leaves no room for emergencies and may result in over-limit fees or declined transactions.
Is ₹40,000 a high Credit Card limit?
A Credit Card limit of ₹40,000 can be considered low to moderate, depending on factors like income, credit history and spending habits. For some individuals, this amount may adequately cover monthly expenses, while for others, it might be insufficient.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd.
and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader
for taking any financial decisions based on the contents and information. Please consult your financial advisor
before making any financial decision.
