What is maximum credit limit on a credit card

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Credit Cards come with a limit on how much money you can borrow at a time. You can increase the allowed spending limit on your credit card by:

Improving your credit score
Paying your Credit Card bills on time
Earning a higher income

Negotiate with your bank and get a higher limit on your credit card to spend freely.

Dreaming of easy spending, but don’t have the money? Your Credit Card limit that is permitted on your card determines how much money you can withdraw and spend. So you can spend more than what is in your Savings Account. Worry not, because if you clear your dues within the time limit, your available balance is reset, allowing you to comfortably spend. If you are responsible with your credit card usage, you can increase the maximum credit limit on your Credit Card easily!

Factors that influence your Credit Card’s maximum limit

RBI Policies: The Reserve Bank of India (RBI) has not specified an overall maximum limit on Credit Cards and 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.
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.

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Increasing the maximum credit limit

With an Axis Bank Credit Card, it is easy to get a higher credit limit, here’s how:

Accept your pre-approved credit limit increase offer
Apply for a credit limit increase with income documents

Also Read: How to check Credit Card limit?

Conclusion

Banks set maximum credit limits on Credit Cards based on your creditworthiness, and this 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.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.