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How Can You Increase Your Credit Card Limit? What are its Advantages?

February 08, 2018

A credit card has its advantages. However, you can spend only under the limit that’s been set for yours. So, if your credit card limit is Rs. 1 lakh, then you can’t spend more than Rs.1 lakh with it in a month.


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Banks set the credit card limit after considering various factors including your credit score, monthly income, spending habits, etc. However, you can increase your current limit to enjoy the following benefits:

Lower Credit Utilization

By increasing your credit card limit and keeping your average monthly spending the same, you can lower your utilization ratio. So, if you are currently spending Rs. 50,000 with your card every month on average, and your limit is Rs. 1 lakh, then it means your credit utilization is 50%. However, if you increase your limit to Rs. 1.5 lakhs then your credit utilization becomes 33%.
A low credit utilization ratio is associated with responsible personal finance behavior and helps to make a good impression on the banks.

Increased Credit Score

A higher credit limit also helps increase your credit score if you don’t increase your expenses. This again has to do with the credit utilization ratio, which when brought down can boost your score.


Having a single credit card with a sufficiently high limit makes the management of your finances simple and easier as opposed to having multiple credit cards with lower limits.

How do you increase your credit card limit?

If you want to increase your credit card limit, then you need to contact your card issuer directly and request for the same. However, if you got the card only recently (less than 6 months), then you should wait for a while as otherwise, it may raise red flags for them.
It’s important to learn that you can’t increase your credit card limit if you can’t make a strong case for it. So, unless you have been paying your credit card bills in full and on time in the past few months, and have a high income, then the card issuer may not increase the limit.


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