How To Increase ICICI Credit Card Limit?
Many Credit Card users say that their credit limit is insufficient for their needs but have no idea how to increase it.
What is a Credit Card's credit limit?
The Credit Card limit, as its name implies, is the usage restriction set by the Credit Card provider for a specific card. In other words, it represents the maximum amount that can be charged to a Credit Card.
For instance, if your bank or the Credit Card provider has placed a limit of Rs 50,000 on your Credit Card, you cannot use it to make purchases or conduct transactions over this amount. The credit limit is based on the type of Credit Card used and eligibility requirements.
Types of credit card limits
There are three different types of credit card limitations accessible to ICICI cardholders. The relevant information is provided below.
Total credit card limit
This limit is the maximum credit amount a cardholder can utilize or spend. The entire credit card limit will be diminished when the cardholder makes any purchase. This limit is reinstated after the cardholder pays their credit card balance.
Available credit card limit on any specific day
This is the limit a cardholder can access on any given day. This limit is the available balance limit from the overall credit card limit after the cardholder has made transactions. The cardholder can modify this to increase the card's security.
Available credit card cash limit
Each ICICI credit card allows the cardholder to withdraw a specified proportion of the card limit as cash for emergencies.
ICICI Bank often provides a cash limit between 20 and 40 percent of the overall credit limit, based on the type of credit card and the cardholder's profile.
Increasing your ICICI credit card limit
Improve credit score
A credit score is the most important variable in calculating a cardholder's credit limit. By improving their credit score, cardholders can easily boost their credit card's credit limit.
One of the simplest ways to improve one's credit score is to utilize a credit card to pay monthly expenses and make on-time, full payments without default.
Provide evidence of increased earnings
The cardholder's request to boost the credit card limit might be supported by evidence of a higher income. It will assure the bank of the prompt repayment of credit card obligations and the cardholder's repayment capabilities.
The cardholder may provide evidence of a wage increase or any other source of income to support the request for an enhanced credit card limit.
Request for a new credit card
By applying for a new credit card, the credit card limit can increase more quickly. ICICI Bank offers an extensive selection of credit card options.
If the cardholder has been paying credit card bills on time and has a solid credit history, they will obtain a new credit card without difficulty.
Punctual payment of credit card bills
It is essential for the cardholder's creditworthiness that they repay credit card balances. This ensures the bank of the cardholder's solid repayment potential. If the cardholder's past dues are not paid and carried forward, they must be settled as soon as possible.
Following this, future credit card dues must be paid before the due date to convince the bank that the cardholder is eligible for a credit limit increase.
Reduction of existing obligations
When assessing a request to enhance a credit card limit, external liabilities are always considered. When a cardholder makes such a request, it is advisable to lower their external liabilities, such as mortgage payments, personal loan payments, other credit card dues, etc., before granting the request.
Avoid a 100 percent credit utilization ratio.
The credit utilization ratio is the proportion of the cardholder's entire credit limit to the amount of credit utilized. Many experts agree that cardholders should maintain a credit utilization percentage of around 30 percent.
A lower credit usage ratio indicates that the cardholder does not require maximum credit utilization to cover expenses. It will also boost the cardholder's credit score, which may result in a higher credit card limit.
Conclusion
As described above, a credit card limit increase can be triggered by either the bank or the cardholder. While approving the increase in credit limit, the bank will evaluate the cardholder's credit profile and the prior history of the cardholder's existing credit card.
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