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What is a Credit Card Limit?

The term credit card limit refers to the maximum amount that can be borrowed on a credit card at any given time. This limit is decided by the credit card issuing authority and differs for each person according to their credit scores. It is communicated at the time of issuance and remains the same until the bank deems a change is necessary.

It is essential to be aware of your credit card limit to ensure your expenses don’t overshoot. Borrowing more on the card than your card limit can have a negative impact on your credit score. A reduced credit score hampers your creditworthiness and your chances of securing a loan at favourable terms in the future.

How Do Banks Determine Your Credit Card Limit?

  • Annual Income

A higher income indicates a better repayment capability. If your income is in the higher bracket, the chances are more that the bank would offer you a higher credit limit. On the other hand, the total credit limit would be low for a low-income person.

  • Age

Your spending capacity increases as you age and gain responsibilities. As a result, you may be eligible for a higher maximum credit card limit.

  • Current Debt Amount

The amount of money you borrowed in the past but are yet to repay has a negative impact on your credit score. As a result, if you have availed of excess credit in the past but have been unable to repay, the bank would reduce your credit limit.

  • Employment Status

If you have been employed in your current organisation for a significant time, it indicates that you have a stable job and regular pay. As a result, the bank may consider your application for a higher credit limit. An unstable job and no fixed pay cheques can negatively affect the maximum credit limit.

  • Credit Score

Your chances of getting approved for a maximum credit card limit increase if you have a high credit score since this reflects good repayment behaviour.

  • Credit History

If there is no credit history and credit score to your name, and you have applied for your first credit card, the bank might consider giving you a card with a low credit limit as it is unaware of the risk involved. Similarly, if you have a good credit score and a stellar credit history, the bank may be comfortable offering you a card with a higher credit limit.

How to Increase Your Credit Card Limit?

If you are a dependable user who spends wisely and pays the bills on time, the bank will reach out to you to increase your CC limit. However, if you need more funds, you can initiate the process. You can visit the bank or raise a request through net banking to increase your credit card limit. If you are wondering how to improve your credit card limit, here is a list of things you can do.

  • Submit Income Increase Proof

In case your income has increased, you can offer your latest payslips to the bank as proof and request to increase your credit card limit.

  • Clear Your Dues

Try to be regular with your payments to help increase your credit score so that the bank considers you for a credit card limit increase.

  • Bank Loyalty

You can also opt to hold on to a credit card for a longer duration so that the bank reaches out to you to increase the maximum limit of the credit card

  • Reduce Fixed Debts

Work towards reducing your debts, such as personal loan EMIs, home loan EMIs, etc., as this would create a positive impression on the bank.

  • Keep Credit Utilisation Low

You must ensure that your credit utilisation ratio, i.e., the amount borrowed against the credit available, is low as it improves your credit score. Try to maintain a credit utilisation ratio of 30%

  • Apply for a Credit Card

You can apply for a new credit card with a higher credit limit and use one or both cards for transactions.

How to Check the Maximum Limit on Your Card?

To check the limit of your credit card, you can opt for any of the following means:

1. Check Credit Card Limit Through Net Banking

If registered with the bank’s net banking service, you can check your credit card limit by following a few easy steps.

  • Step 1: Visit the bank’s net banking portal

  • Step 2: Use your credentials and log in to your account

  • Step 3: Go to the credit card section

  • Step 4: Select the credit card for which you want to check the limit

  • Step 5: Click on the 'View account summary' option

  • Step 6: Your credit card limit will be mentioned in the credit card account summary.

2. Checking Credit Limit Through SMS

You can also check the limit of your credit card by sending an SMS to your bank, using the keyword in the approved format, from your registered mobile number. You will get an instant reply from the bank with details regarding your credit card limit.

 3. Checking Credit Card Limit Through Customer Care

A credit card limit check can also be done in real-time by calling the concerned bank's credit card helpline number and placing a request with a customer care executive. After verification, the executive will communicate your credit card limit to you.

Advantages of Increasing Credit Limit of Your Credit Card

Banks and Financial institutions usually issue cards with a maximum limit but in times of an emergency or an unexpected expense situation, you may find yourself in a tight spot. In such a case, you need not consider applying for a new card but instead increasing the credit limit of your existing card can really come in handy. Some of the benefits of taking this step are:

1. No Hassle of Managing Multiple Cards

By choosing to enhance the credit card limit on a single card, you do not have to handle multiple cards at the same time. It can be quite a daunting task to remember passwords, PINS, and payment cycles of each card, and remember to make timely payments for each card. Instead, increasing the credit card limit on one card can help you plan, monitor, and control your expenditure seamlessly.

2. Credit Score

Increasing credit card limits while managing the same level of expenses reduces credit usage. Low credit utilisation is often considered a feature of a dependable debtor and is assessed higher in credit scores. Hence, by enhancing your credit card limit, you can also benefit from a better credit score.


A good payment history can be quite beneficial when you need to prove your creditworthiness or apply for a loan. It is more convenient to have one card where you can make enhancements as needed, thus giving greater confidence to potential lenders, and allowing you to receive more funds.

4. Emergencies

Unlike loans or other forms of advances, a credit card is an instant payment option that one can consider when in an emergency situation or critical financial emergency. Thus, enhancing the limit on one single card can really come in handy in such times.

5. Better Rewards

The benefits of enhancing the credit limit can be endless but one that is quite lucrative is enjoying more advantages and rewards on the credit card. If you don't split your costs between multiple cards, you can end up with higher rewards, cashbacks, extended warranties, and vouchers on big-ticket expenditures.

Total Credit Limit vs Available Credit Limit

There is a difference between the total credit card limit and the available limit on your credit card. Here is some clarity on what these two terms mean.

  • Total Credit Limit

The total credit limit is the maximum amount that you can spend using your credit card. If you do spend more than the total credit card limit, you will have to pay the over-limit charges set by your card issuer. 

  • Available Credit Limit

The available limit of your credit card, on the other hand, is the amount of the total credit that is unspent or unutilised at any given point in time. 

Let us look at an example to understand this better. Say you have a credit card on which you can spend up to ₹1 Lakh. This is the total credit card limit. Now, let’s assume you have spent ₹40,000 so far in this billing cycle. This means ₹60,000 of your total credit limit is still unutilised, making it the available credit limit. 

How Does the Credit Card Limit Affect Your Credit Score?

Your credit score is a three-digit number typically ranging between 300 and 900. It reflects your credit worthiness, meaning that the higher the score, the more creditworthy you are. If you have a credit card, the manner in which you use the total credit card limit impacts your credit score. 

When you spend on purchases using your credit card, you use a part of the total limit available on it. This determines your credit utilisation ratio, which is effectively the percentage of your total credit card limit that you use. Your credit card issuer periodically reports information about your credit card limit and your credit utilisation to credit bureaus and credit rating agencies. These agencies then use the information to compute your credit score. 

Broadly speaking, the lower your credit utilisation ratio is, the higher your credit score will be, provided all other factors are also positive (such as prompt repayments and a healthy credit mix). So, the less of your credit you use, the better it is for your credit score. 

How Much of Your Credit Card Limit Can You Use?

It is advisable to use up to 30% of your total credit card limit if you want to keep your credit score high. This way, it becomes easier for you to avail credit facilities in the future if you need financial assistance. 

For example, if your total credit card limit is ₹1 Lakh, the recommended credit limit usage will be around ₹30,000 (i.e. 30% of ₹1 Lakh). 

FAQs on Credit Card Limit

✔️How is my credit card limit decided?

 The credit card limit is decided based on the yearly income, age, current debt amount, available credit, employment status, credit score, and credit history.

✔️Is it good to increase my credit card limit?

  If you tend to borrow more on your credit card, it is better to increase the credit card limit. It will lower the credit utilisation ratio and hence improve your credit score.

✔️How much is the credit card swipe limit per day?

 The credit card daily limit is set by the bank and can be modified by you based on your expenses and the total credit card limit. The credit card swipe limit per day or the credit card daily limit is the total amount that you can borrow on the card in a day.

✔️ What is the difference between the total credit card limit and available credit card limit?

 While total credit card refers to the total amount one can borrow using a credit card, the available credit card limit is the available money based on the bank account balance. Overall, if the entire available credit card limit has been used, the total credit card limit is reached. Most banks deny further transactions in this situation.

✔️What will happen to my credit card limit if I maintain a good credit score?

Banks revise the credit limit periodically and consider other factors such as timely card payments, decent credit scores, as well as the income of the individual. If you have a good record, then banks tend to increase their credit limit.

✔️How do I know if I'm eligible for a pre-approved credit card limit increase offer?

To know if you are eligible for a credit card increase offer, you must fulfill certain criteria. Several factors including credit score, income, age, employment type, existing relationship with the credit card issuer, and other debts determine whether you are eligible for a pre-approved credit card limit increase offer.

✔️Do I need to decrease my credit card limit?

Lowering your credit card limit may not be a clever move as it significantly impacts your credit score. So, if you need some emergency funds or need to apply for an instant loan, having a good credit score and a higher credit limit can come in handy at such times.