Your credit card limit is the maximum amount of credit extended to you by the issuing bank. It’s important to have a credit card limit that meets your financial needs, as it determines how much you can spend on your card. If you’re looking to improve your credit card limit, here are some tips to consider: 

1. Maintain a good credit score 

Determining your creditworthiness is largely dependent on your credit score. A higher credit score indicates that you are a responsible borrower who pays their bills on time and uses credit responsibly. Banks and credit cards issuers prefer customers with good credit scores as they are considered low-risk borrowers. 

If you have a good credit score, you are more likely to be offered a higher credit limit. On the other hand, if you have a poor credit score, you may struggle to get a higher credit limit, and your existing limit may even be lowered. To maintain a good credit score, it’s imperative to pay your bills on time, minimize credit utilization, and steer clear of avoidable debts. 

2. Request a credit limit increase 

If you’ve been using your credit card responsibly for some time, you can request a credit limit increase from your card issuer. Most card issuers have an online portal or a customer service hotline where you can request a credit limit increase. Before you request a limit increase, make sure you’ve been using your card regularly and paying your bills on time. 

When you request a credit limit increase, your card issuer will review your credit score, income, and payment history to determine if you qualify for an increase. If you meet the criteria, your credit limit may be increased immediately. However, if your request is denied, you can try again in a few months or consider other options. 
 

3. Increase your income 

If you have a low credit limit, one way to improve it is by increasing your income. This could mean getting a new job or starting a side hustle. By increasing your income, you can demonstrate to your card issuer that you have the financial capacity to handle a higher credit limit. 

When you apply for a credit limit increase, your income will be a crucial factor in determining whether you qualify. Therefore, if you’re planning to request a credit limit increase, make sure you can provide proof of your income. 

4. Use your card responsibly 

Using your credit cards responsibly is essential to maintain a good credit score and improve your credit limit. This means paying your bills on time, keeping your credit utilization low, and avoiding unnecessary debt. If you’re using your card frequently but making timely payments and avoiding overspending, your card issuer is more likely to consider increasing your credit limit. 

On the other hand, if you’re regularly maxing out your card or missing payments, your card issuer may view you as a high-risk borrower and lower your credit limit. Therefore, it’s important to use your card responsibly and avoid unnecessary debt. 

5. Consider a balance transfer 

If you’re struggling to keep up with your credit card payments, a balance transfer can help you consolidate your debts and improve your credit limit. A balance transfer involves moving your credit card balance to a new card with a lower interest rate and better terms. 

When you transfer your balance, you can reduce your interest charges and pay off your debts faster. This can help you improve your credit score and qualify for a higher credit limit in the future. 

In conclusion, improving your credit card limit requires responsible credit card usage, maintaining a good credit score, and demonstrating financial stability. If you’re looking to increase your credit limit, consider requesting a limit increase, increasing your income, using your card responsibly, and consolidating your debts with a balance transfer. Incorporating these tips can aid in boosting your credit card limit. 

If you’re looking for a credit card that encompasses all the benefits and rewards to match your lifestyle, check our offerings and you’ll definitely find your ideal pick. IndusInd Bank offers a range of lifetime free credit cards that enable you to enjoy exquisite privileges and help save more with reward points that never expire.   

Apply Now 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. 

In today’s fast-paced world, credit cards have become a necessity for most people. They provide easy access to credit and offer several benefits like rewards, cashback, discounts, and more. However, not everyone is eligible for a credit card, and sometimes it may not be convenient to have multiple credit cards. That’s where add-on credit cards come in. 

An add-on credit card is an additional credit card that is issued under the primary cardholder’s account. It is also known as a supplementary card or a secondary card. The primary cardholder can apply for an add-on credit card for their family members who are above the age of 18 years. The add-on credit card has the same credit limit as the primary card, and the transactions made on the add-on card are billed to the primary cardholder’s account. The primary cardholder can set a limit on the add-on card, and the cardholder can monitor the spending on the add-on card through their credit card statement. 

The primary cardholder is responsible for paying the bill for both the primary card and the add-on card. The primary cardholder also has the authority to cancel the add-on card if necessary. The add-on cardholder does not have any liability or responsibility for the repayment of the amount spent on the add-on card. 

Benefits of an Add-on Credit Card 

1. Convenience: An add-on credit card provides a convenient way for family members to access credit without having to apply for a separate credit card. 

2. Rewards: Add-on cardholders can also enjoy the same rewards, cashback, or discounts offered on the primary card. This means that the add-on cardholder can earn rewards for their spending without having to pay the annual fee. 

3. Emergency Use: An add-on credit card can come in handy during an emergency. If the primary cardholder is not available, the add-on card can be used to make necessary payments. 

Things to consider before applying for an Add-on Credit Card 

1. Credit Utilization: The primary cardholder must monitor their credit utilization ratio, which is the amount of credit used compared to the credit limit. Adding an add-on card may increase the credit utilization ratio and affect the credit score negatively if the credit utilization ratio is high. 
    
2. Trust: The primary cardholder must trust the add-on cardholder and ensure that they use the credit card responsibly. If the add-on cardholder overspends or defaults on payments, it can negatively affect the primary cardholder’s credit score. 
    
3. Fees: Some banks may charge a fee for an add-on credit card. The primary cardholder must check with their bank about any additional fees or charges associated with an add-on credit card. 

Conclusion 

In conclusion, an add-on credit card is an additional credit card issued under the primary cardholder’s account. It provides a convenient way for family members to access credit without having to apply for a separate credit card. However, the primary cardholder must consider several factors before applying for an add-on credit card, such as credit utilization, trust, fees, and limitations. Overall, if used responsibly, an add-on credit card can provide several benefits to both the primary and add-on cardholders. 

If you’re looking for an add-on credit card that encompasses all the benefits and rewards to match your lifestyle, check our offerings and you’d definitely find your ideal pick. IndusInd Bank offers a range of lifetime free credit cards that enable you to enjoy exquisite privileges and help save more with reward points that never expire.   

Apply Now 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.