Personal Use Loan

How To Increase Credit Card Limit

By Tata Capital
08 January 2026
7 mins read
3188

In India, the number of credit card users is increasing by the day. According to Statista, about 73 million credit cards were issued in India in fiscal year 2022. Most of these individuals finance their lifestyle through credit cards. They use credit cards to shop, pay bills, and more.

And if you are one of them, then at some point, you must have felt that your credit card limit is not enough to meet all your needs. This is why you should know how to increase your credit card limit.

You can increase your credit card limit by simply requesting your lending institution for the increase, or you can increase your credit score, among other ways. So, if you want to know “how can i increase my credit card limit?”, read this article until the end!

What are the factors that determine your credit card limit?

How to increase the credit card limit depends on several factors. Many credit card companies use your credit score to decide the limit on your card. The higher your credit score, the more chances you have of getting a higher credit limit.

Moreover, payment history, credit utilisation, credit mix, and length of credit history all contribute to your credit score.

Issuers also evaluate your household income, employment, and monthly spending while determining your limit. That is, the more your income, the higher your chances of an increase in your credit card limit.

Now let’s look at how to increase the credit card limit.

Methods to Increase Credit Card Limit

1. Request an increased limit on the existing card

This may appear to be too good to be true, but your lending institution can boost the credit limit on your current card merely at your request. However, accepting this request is subject to several variables, including your credit score, credit history, and income.

Besides, it is essential to note that you must also list why you believe you qualify for the rise. For example, you may show that you pay your payments on time and in full every month, that your income has lately increased, and so on.

2. Timely repayment of dues

The most direct answer to how to increase the credit card limit would be to pay off all your existing credit obligations. First, you should clear any carried-over credit dues from the previous month. Additionally, strive to pay off future bills in full before the due date.

These will create an impression that you are diligent and particular with paying your financial obligations. In addition, this will demonstrate to your credit card provider that you can manage your increased credit card limit responsibly.

3. Inform the lending institution of any promotion or salary increase

Your credit card limit can be increased simply by informing your lending institutions of your current financial situation. If your pay has increased, you should notify your credit card companies. Then you can either request an increase in the credit limit on your existing cards or request that new cards with a greater credit limit be issued.

However, before approving your new increase credit limit request, the institution may want you to provide proof of income.

4. Reduce your credit utilisation ratio

Among the best ways to improve your credit score is to keep your credit utilisation at around 30%. So, if your credit limit is Rs. 50,000 and you want to increase your limit, then simply try not to spend more than 30% of it, which is not more than Rs. 15,000.

A lower credit utilisation improves your CIBIL score. And an increase in CIBIL score implies that you have a good credit history and report, leading to an increase in your credit limit.

5. Work towards improving your credit score

Your credit card limit is directly related to your credit score. Lending institutions consider an applicant’s credit score before offering a credit card and even deciding the credit limit.

That is why you should always work to improve your credit score. You can accomplish this by settling all your bills on time, including EMIs, avoiding taking too many loans, having a solid and lengthy credit history, etc.

6. Reduce your financial commitments

When you seek an increase in your credit card limit, your credit card issuer will undoubtedly assess the amount of debt you already have. This would include EMIs on a home loan, a personal loan, additional credit card bills, and so on.

So, if you have too many loan obligations, it is best to first minimise the set monthly payments before requesting an increase in your credit limit.

7. Apply for another card

The simplest way to raise your credit card limit is by applying for a new card. If you have been responsible for your payments, you should have no trouble getting another card with a higher credit limit.

Managing Your Increased Credit Card Limit Responsibly

Managing increased credit limit responsibly is key to improving your credit profile. A higher limit can lower your credit utilisation ratio and boost your overall credit score, but only if used wisely. Here are some tips.

Always track your spending
Make monthly payments on time
Keep your credit utilisation ratio below 30%
Avoid making impulse purchases with your higher credit limit
Wait a few months before requesting another credit limit increase
Review your credit report regularly

By managing your increased credit limit carefully, you can enjoy better financial flexibility.

Benefits of increasing the credit limit of your credit card

Is it good to increase credit limit or not? Yes, it is. In fact, there are several benefits of a higher credit card limit.

Some of them are-

1. Easier loan approvals

A higher credit card limit can increase your chances of obtaining a loan. This is because lending institutions will identify you as a financially responsible customer if you already have a large credit limit and a low card usage ratio.

2. Eliminate the need for several credit cards

A credit card with a high credit limit eliminates the need for several credit cards. First, this is beneficial as more cards mean more charges and yearly fees. Secondly, more cards can be counterproductive and detrimental if not properly managed.

3. Earn more rewards

If your lending institution increases the credit card limit, you can get rewards like airline tickets, gift vouchers, etc. This is because an increase in the limit implies that you, as a customer, have a good track record of timely payments.

How to Apply for a Credit Limit Increase?

If you want to apply for a credit limit increase, the process is usually straightforward.

You can apply via SMS, your issuer’s mobile app, or internet banking. Check if your card issuer offers these options. You might be prompted to update details like your current income.

Alternatively, you can contact your card issuer directly. Discuss your request for a credit limit increase, understand the process, and clarify all particulars.

Before applying, ensure your credit history is in good standing, as this increases the chances of a successful credit limit increase.

Common Reasons for Credit Limit Increase Rejection

When you request a credit limit increase, your issuer will review your credit history, payment behaviour, and credit utilisation ratio.

Some credit limit increase rejection reasons include:

High outstanding balances or a pattern of late repayments on EMIs, signaling financial risk.
A short or limited credit history.
An insufficient credit score.
Defaults on a loan or credit card in the past.
An insufficient income that cannot support the requested credit limit.
A high debt-to-income ratio, indicating existing financial strain.

Being aware of these factors can help you improve eligibility for future requests, and taking steps to strengthen your credit profile can increase your chances of approval.

Conclusion

The ways mentioned above, along with a check on your spending habits, will help you sail through how to increase credit card limits hassle-free. We at Tata Capital specialise in delivering financial services, including providing credit cards in the most hassle-free manner. Moreover, with Tata Capital, you can customise your card based on your specific needs and requirements. So, apply for your credit card today!

Apply for a Tata Credit Card

FAQs

What is the maximum limit of a Credit Card?

The maximum credit card limit in India varies based on your income, credit history, and the bank’s policies. Typically, limits range from ₹10,000 to several lakhs. Higher earners and those with strong credit scores may receive larger limits.

Can we use 100% of the Credit Card limit?

Yes, you can use your entire credit card limit, but it’s not recommended. Maxing out your card can harm your credit score and make it harder to manage repayments. It's better to keep your usage below 30% of the limit.

Is it good to increase the credit limit?

Increasing your credit limit can be beneficial as it may improve your credit utilisation ratio. However, you should ensure you can manage the higher limit responsibly to avoid accumulating debt.

Does increasing credit limit affect CIBIL score?

Yes, increasing your credit limit can positively impact your CIBIL score by lowering your credit utilisation ratio. However, ensure you don’t misuse the higher limit, as missed payments or high debt can negatively affect your score.

How often should I request a credit limit increase?

There is no formal guideline for how often you should request a credit limit increase. Waiting at least six months before requesting another increase is recommended, because each request can lead to hard inquiries that temporarily impact your credit score.

Does applying for a credit limit increase affect my credit score?

When you request to extend credit card limit, your card issuer might perform a hard inquiry. This can temporarily lower your credit score. Managing your increased credit limit effectively, making EMI payments on time, and maintaining a low debt-to-income ratio will improve your credit score.

What should I do if my credit limit increase request is rejected?

If your credit limit increase request is rejected, it is recommended that you wait up to 6 months before requesting again. Within this period, focus on learning how to increase credit limit by increasing your income, improving your credit score by making timely EMI payments, and reducing your debt-to-income ratio.

Can a self-employed person get a high credit card limit?

To improve your chances of getting high limit credit cards as a self-employed person, you will be required to furnish proof of income, have a strong credit history along with a low credit utilisation ratio, and demonstrate the stability of your income.

What is the ideal credit utilisation ratio to maintain?

Ideally, it is best to maintain your credit utilisation ratio below 30% of your total available credit. Low credit utilisation can be maintained by paying all EMIs and bills on time, using multiple cards or requesting a credit limit increase.

What documents are required to increase your credit card limit?

Specific documents vary based on the credit card issuer. A general list of documents needed to increase credit card limit include the latest salary slips and income tax returns. Your issuer will likely already have access to identity and address proof documents.

How long does it take for a credit card limit increase request to be processed?

Typically, a credit card limit increase request takes anywhere from a few hours to a few business days to process. Some issuers can provide instant approvals online, while others may require a credit review or income verification before confirming the new limit.

Are there any fees associated with increasing a credit card limit?

Credit card issuers generally do not charge any fees to increase credit card limits. The process is usually free, though your bank may review your credit history and income before approval. This ensures that the higher limit aligns with your creditworthiness and repayment ability.

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