{"id":33438,"date":"2023-08-28T13:24:50","date_gmt":"2023-08-28T13:24:50","guid":{"rendered":"https:\/\/www.tatacapital.com\/blog\/?p=33438"},"modified":"2026-08-18T20:59:13","modified_gmt":"2026-08-18T15:29:13","slug":"how-to-increase-credit-card-limit","status":"publish","type":"post","link":"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/how-to-increase-credit-card-limit\/","title":{"rendered":"How to increase credit card limit in India: Tips, eligibility & process"},"content":{"rendered":"\n

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A credit card limit is the maximum amount of money you can spend on a specific card. It is determined by credit card issuers based on your income, credit score, payment history, and existing debts. The available balance reduces with every purchase and is restored upon repayment. So, if your credit card limit is Rs. 70,000, you can use your card for purchases of up to this amount. If you want to increase your credit card limit, you must use the card frequently, maintain a credit utilization below 30%, and pay bills on time.<\/em><\/strong><\/p>\n\n\n\n

A credit card limit is set by banks or lenders for the amount you can borrow during a billing cycle. The amount is reduced when you use your card and is restored when you pay the bill.<\/p>\n\n\n\n

In India, the number of credit card users is increasing by the day. According to data, there were 100 million active credit cards<\/a> in circulation in India as of 2024. Most of these individuals finance their lifestyle through credit cards. They use credit cards to shop, pay bills, and more.<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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 \u201chow can I increase my credit card limit?\u201d, read this article until the end!<\/p>\n\n\n\n

What is the credit card limit?<\/strong><\/h2>\n\n\n\n

A credit card limit is the maximum amount you can spend using your credit card. It is like a spending cap that your card issuer sets. For example, if your credit card has a limit of Rs. 1,00,000, you can make purchases up to that amount. If you spend Rs. 30,000, you will have Rs. 70,000 of your limit left to use until you repay the outstanding amount.<\/p>\n\n\n\n

A higher credit limit gives you more flexibility. However, it is important to spend responsibly and repay your dues on time. Such habits help to avoid debt and maintain a good credit score.<\/p>\n\n\n\n

What are the factors that determine your credit card limit?<\/strong><\/h2>\n\n\n\n

Before determining your credit card limit, issuers look at several factors to assess your ability to repay borrowed money and manage credit responsibly. If you have a strong financial profile, your chances of getting a larger credit limit are higher.<\/p>\n\n\n\n

The following table outlines the credit card limit factors, their impact, and an example.<\/p>\n\n\n\n

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Factor<\/strong><\/td>Impact<\/strong><\/td>Example<\/strong><\/td><\/tr>
Monthly income<\/td>A higher income usually qualifies you for a higher credit limit.<\/td>A person earning Rs. 1 lakh per month may receive a higher limit than someone earning Rs. 30,000.<\/td><\/tr>
Credit score<\/a><\/td>A good credit score shows responsible borrowing and improves your chances of a higher limit.<\/td>A score of 780 is likely to get a better limit than a score of 650.<\/td><\/tr>
Repayment history<\/td>If you pay bills on time, it builds trust with the card issuer.<\/td>A customer with no missed payments may be easily offered a limit increase.<\/td><\/tr>
Credit utilization ratio<\/td>When you use only a small part of your available limit, it reflects good credit management.<\/td>Spending Rs. 20,000 on a Rs. 1 lakh limit (20% utilization) is viewed positively.<\/td><\/tr>
Existing debts<\/td>A high loan or credit card debt may reduce the limit offered.<\/td>Someone already paying multiple EMIs may receive a lower limit.<\/td><\/tr>
Employment stability<\/td>A stable job and regular income can increase your eligibility.<\/td>A salaried employee with three years at the same company may qualify for a higher limit.<\/td><\/tr>
Relationship with the bank<\/td>Long-term customers with a good banking history may receive better offers.<\/td>A customer with a salary account and fixed deposits may be offered a higher credit limit.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What is the impact of a credit card limit on credit score?<\/strong><\/h2>\n\n\n\n

A credit card limit indirectly impacts your credit score by influencing your credit utilization ratio. Your score can improve with a higher limit if you use it responsibly. However, simply having a high limit does not guarantee a better credit score.<\/p>\n\n\n\n

Here\u2019s how a credit card limit affects your credit score:<\/p>\n\n\n\n

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  1. When you keep spending under 30% of your limit, it lowers your credit utilization ratio.<\/li>\n\n\n\n
  2. Your credit profile improves if you pay your bills on time.<\/li>\n\n\n\n
  3. The limit increases your borrowing flexibility without harming your score.<\/li>\n\n\n\n
  4. If you have a higher limit that leads to overspending or missed payments, it can hurt your score.<\/li>\n<\/ol>\n\n\n\n

    What is the difference between total limit and available limit?<\/strong><\/h2>\n\n\n\n

    The total credit limit and the available credit limit are related but different. You must understand the difference between the two to track your spending efficiently and avoid using too much of your available credit.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Factor<\/strong><\/td>Total credit limit<\/strong><\/td>Available credit limit<\/strong><\/td><\/tr>
    Meaning<\/td>The maximum amount you can spend using your credit card.<\/td>The remaining amount you can still spend after your current transactions.<\/td><\/tr>
    Changes over time<\/td>It usually stays the same unless the issuer increases or decreases it.<\/td>It changes every time you make a purchase or repay your card bill.<\/td><\/tr>
    Calculation<\/td>It is a fixed limit assigned by the card issuer.<\/td>The formula is: Total credit limit – Outstanding balance<\/td><\/tr>
    Purpose<\/td>Sets your overall borrowing capacity.<\/td>Shows how much credit is left for new purchases.<\/td><\/tr>
    Example<\/td>Your card has a total limit of Rs. 1,00,000.<\/td>If you have spent Rs. 35,000, your available limit is Rs. 65,000.<\/td><\/tr>
    Impact on spending<\/td>The limit tells you the maximum you can borrow.<\/td>The limit helps you know whether you have enough credit for your next purchase.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    What are the benefits of increasing your credit card limit?<\/strong><\/h2>\n\n\n\n

    If you are trying to learn how to increase your credit card limit, you probably already know how beneficial it can be. But if you don\u2019t, here are the credit card limit benefits that come with an increase.<\/p>\n\n\n\n