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10 Ways to Increase Credit Card Limit

 Credit Card Limit – Credit card is one of the most popular payment instrument nowadays. We can’t imagine our life without plastic-based credit card. The credit limit is an important part of a credit card. A credit limit is the maximum amount of credit that is given to the customer. If you have fully consumed your credit limit you will not able to use your credit card till the time credit card limit is restored. You need to pay your dues to restore your credit limit. Another alternative is to increase the credit card limit.

A higher credit card limit means higher purchasing power. An increase in credit limit means an improvement in your CIBIL score. If you have consumed your credit limit and you want to increase it. Here is readymade help. I am herewith 10 proven ways to increase the credit card limit.

credit card limit

10 Ways to Increase Credit Card Limit

#1 Increase your Fixed Deposit

One of the easiest ways to increase your credit limit is by making more investment in the fixed deposit. This works in most cases, especially if the credit card is secured credit card and issued against a fixed deposit.

This means if you add more amount to your fixed deposit or increase investment in the fixed deposit your credit limit will be increased. Generally, the card limit in a secured credit card is linked with a fixed deposit and it is 80% of the total investment.

#2 Improve your CIBIL Score

Another way to increase your credit limit is by improving your CIBIL score. Your CIBIL score indicates your financial credibility. A credit score is seen by banks and credit card companies while lending money.

Higher the CIBIL score better is your chance to increase the credit limit. You can refer to my earlier post explaining – 7 ways to improve your Credit Score.

#3 Ask for Credit Card Upgrade

You can also increase your card limit by asking for a card upgrade. You need to ask your bank about your eligibility for upgrading your current credit card. The upgrade in credit card purely depends on your payment history and relationship with the bank. The credit card upgrade works fine in most of the cases. However, you need to consider additional annual fees applicable to the credit card upgrade.

#4 Request for Limit Increase

You can also request the bank for a limit increase. Many banks provide online options for increasing the credit limit. Whenever bank receives such request they will check your CIBIL score, past payment history, and your current monthly income. Bank may ask proof of your current monthly income. This is to assess your creditworthiness. If you have maintained good credit history your request will be accepted.

#5 Apply for a new credit card with a higher limit

Another way to increase your credit limit is by applying for a new credit card with a higher limit. You can apply it to the same bank or another bank. Again approval of your new credit card with a higher limit is based on your CIBIL score and your present income. This strategy will work only if you have one or two credit cards. If you have multiple cards it may not work. If you are finding difficulty in selecting a new credit card you can refer to my earlier post – Best Credit card for 2020-21 – Top Credit card picks.

#6 Use credit card for doing foreign currency transactions

If possible, use your credit card for making foreign currency transactions. It is one of the simplest ways to increase your credit card limit. Bank charges foreign currency mark up fees on foreign currency transactions. The charges go up to 3.5%. It is a very good source of income for the bank. Hence, banks are looking for people who are purchasing things in foreign currency. Bank will increase the credit limit for these types of customers easily.

#7 Show your Income Increment

You can also increase your credit limit by showing your income increment. Whenever you got an increment in the job, you can approach the bank asking for credit limit enhancement. As banks will see your income increment proof they will be happy to enhance your credit limit.

#8 Use your credit card frequently

It may sound unusual but it is true that if you use your credit card frequently and repaying your bills on time you are likely to get card limit enhancement. If you are not using your credit card or using it for only a few transaction bank may feel that you don’t need enhancement in the credit limit. However, when you use your card frequently make sure not to utilize your credit limit above 70%. This may adversely affect your credit score.

#9 Opt for Secured Credit card with higher Limit 

The next full proof way to increase your credit limit is opting for a secured credit card with a higher limit. A secured credit card is issued against a fixed deposit. You need to make a fixed deposit equal to 80% of your credit limit for these types of cards. For more information, you can go through – 7 Credit Cards against Fixed deposit

#10 Wait for Automatic Limit Enhancement

If none of the above options work for you can do nothing but wait for automatic limit enhancement. Many banks review the customer credit card usage and credit score periodically and send a request to the customer for the automatic limit enhancement.

Over to you –

I hope you must have tried for enhancing your card limit. I request you to share your experience and method that worked for you in the comment section given below.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.