According to the latest data published by RBI, the number of active credit cards in India (as of April 2020) has reached almost 57.4 million. This report further mentions that around 9.4 million credit cards were issued between May 2019 and April 2020.
This data portrays the growing popularity of credit cards in this country. At the same time, it also indicates a significant shift in terms of payment card usage across India. Availing a credit card has become significantly easier; you can easily apply for a credit card online from reputed financial institutions.
On the other hand, if you want to increase the credit limit of your card, you cannot do it at the time of application. Typically, it happens organically; otherwise, you can ask your credit card issuer for the same.
5 tips that to promote automatic credit card limit increase
Here are some tips that you can follow to increase the credit limit of your credit card.
- Maintain a clear payment history
Maintaining a credit history devoid of any defaults is crucial to avail an increase in credit card limit. It portrays you as a responsible borrower, and financial institutions will be less likely to reject your application.
At the same time, keeping a clear credit history also increases your credit score and enhances your portfolio as a borrower. It will help you in future if you apply for any loans.
- Good working relationship with the credit card issuer
If you are an existing customer of a particular financial institution from where you availed your credit card, you are more likely to be offered a higher credit limit. Since they already know the risk associated with lending to you,an existing customer, they will be more likely to accept your request. You can talk to the company representative for this purpose.
- Apply for a new credit card
If your current credit card issuer is reluctant to give you an increased credit limit, you can always opt to apply for a credit card online. If you have a high CIBIL score and credible payment history, you can easily avail another card without much hassle. However, you must be aware of the pros and cons of having multiple credit cards before applying.
- Increase the usage of your credit card
Typically, financial institutions increase the credit limit of a card based on their usage. Therefore, you should use your payment card regularly and always pay your credit card bills within the due date. The financial institution, based on your utilisation and repayment pattern, will be more likely to increase the limit.
- Increase the security deposit
If you use a secure credit card, then you can always increase the value of your security deposit to increase the credit limit.
If you are planning to avail a new credit card to increase the credit limit or looking for a credit card with a comparatively higher credit limit, you can opt for Bajaj Finserv RBL Bank SuperCard. RBL Credit Card rewards are one of the prominent features of this product, alongside its high credit limit. Apart from that, you get to avail features like 50-days interest-free ATM withdrawal, affordable interest rate, provision to avail an emergency loan, minimal documentation, etc.
Furthermore, Bajaj Finserv also provides pre-approved offers to existing customers. This offer reduces the hassle of application and helps save time. It is also available for other financial products like personal loans, business loans, etc. You can quickly check your pre-approved offers by submitting your essential contact details.
Increasing the credit limit of a credit card has a host of benefits; for example, it provides you access to more funds in case of an emergency. However, at the same time, it has its drawbacks as well, as one can quickly accumulate large debt if they do not utilise it properly. Hence, when you apply for a credit card online, make an informed decision regarding its limit.
