How can I get an additional credit card or increase my credit card limit?

A credit card offers way more benefits than simply being an easy payback option. From EMI facilities to incentives and offers at numerous partner stores, a credit card is indeed a boon for the card user.

However, with the fact that your bank balance remains throughout the credit period even when you use the card, you may get tempted to overuse it. To minimize the number of default cases, the bank assigns a maximum credit card limit in India to each cardholder. Expenditure beyond this limit will make you liable for a fine.

How is your credit limit decided?

The maximum credit limit is decided based on your CIBIL Score and salary. Usually, it is 2.5 to 3 times your gross monthly income. So, if your gross salary is INR 1 lakh per month, your credit card limit will be somewhere between INR 2.5 lakhs to INR 3 lakhs.

As a good credit practice, it is advised not to spend more than 30% of your available credit limit so that you can avoid debt problems and have a good credit rating at the same time.

Premium Credit Cards

These are a range of credit cards offered by banks at a considerable annual charge for high-salaried people. Undoubtedly these allow for maximum credit card limit. Additionally, from privileges in a 5-star hotel to complimentary travel insurance, the perks of these premium cards are manifold. You can avail of such a card from Bajaj Finserv.

If you wish to adjust your credit card limit, you may discuss it with your lender bank.