CC Limit

Credit Card Limit

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What is Credit Card Limit

The term credit card limit refers to the maximum amount that can be borrowed on a credit card at any point in time. This limit is decided by the credit card issuing authority and differs from person to person. It is communicated at the time of issuance and remains the same until the bank deems a change is necessary. It is important to be aware of the credit card limit to ensure that your expenses don’t overshoot it. Borrowing more on the card can have a negative impact on your finances. Your credit card limit also directly affects your credit score. A reduced credit score hampers your creditworthiness and your chances of securing a loan in the future.

How to Check Credit Limit on Your Card

To check the credit limit of a credit card, you can opt for any of the below-mentioned means-

1. Check Credit Card Limit Through Net Banking

If you are 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: In the credit card account summary, your credit card limit will be mentioned.

2. Credit Limit Check 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 would get an instant reply from the bank with details regarding your credit card limit.

3. Credit Card Limit Check Through Customer Care

Credit card limit check can also be done in real-time by calling the credit card helpline number of that bank and placing a request with a customer care executive. After verification, the executive will tell you your CC limit.

How to Increase 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 too 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 increase 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 CC limit.

Clear your dues

You can be regular with your payments and 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 credit limit of the 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 with 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.

Apply for a Credit Card

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

How Does the Bank Decide the Credit Card Limit

Once you apply for a credit card, the bank considers various factors to determine your credit limit. These include

Yearly income

A higher-income indicates a better spending capacity. As a result, if your income is on the higher side, the chances are more than the bank would offer you a significant credit limit. On the other hand, against a low income, the total credit limit would also be low.


The older you are, the greater your spending capacity. As a result, higher would be your credit limit.

Current debt amount

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

Credit available currently

The amount of credit that is already with you also has a positive effect on the credit limit you can avail on your card. If you have more disposable income, the bank will look forward to increasing your borrowing limits and your chances of repayment are higher.

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 is able to trust your application as one that is suitable for a higher credit limit. An unstable job and no fixed pay cheques can negatively affect the

Credit score

The better your repayment capacity and past records, the better your chances of getting approved for a higher credit limit. This is because your credit score acts as proof of your financial health.

Credit history

If there is no credit history and credit score to your name, and you have applied for your 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 history, the bank will be comfortable in offering you a card with a higher credit limit.

Difference Between Total Credit Card Limit and Available Credit Card Limit

When it comes to the credit card limit, there are two types of limits on your credit card. One is the total credit card limit, while the other is the available credit card limit.

Total Credit Limit

The total credit limit is the maximum amount that you can spend on the card, even if all dues are cleared. For example: If you have a credit card with a limit of ₹1,00,000, it means that you can use up to ₹1,00,000 on the card. This ₹1,00,000 is the total credit limit.

Available Credit Limit

The available credit limit is the amount that is currently available for making transactions. For example: If you have used ₹30,000 out of the total credit limit of ₹1,00,000 on your card, the amount of funds you can borrow on the card gets reduced to ₹70,000. This is called the available credit limit.

It is important to remember that the available limit of credit card changes both with credit card use and repayment. If you are regular with your payments and repay in full, the credit limit will improve. If we consider this in the context of the above example, and you pay back the ₹30,000 you spend on the card, the available credit limit will again be back to its former total, i.e., ₹ 1,00,000.

How Much of the Credit Card Limit Can be Utilised

The amount of money you have spent on your card to the total amount available on the card at any given point of time is expressed as a ratio and is called the credit utilisation ratio. The formula used for calculating your credit utilisation ratio is-

Credit utilisation ratio = (Outstanding balance on all credit cards/Total credit extended on all credit cards) x 100

At any point in time, it is advisable to have a credit utilisation ratio below 30 per cent.

If your spendings are close to the credit limit of the credit card, the utilisation ratio will be very high every month. This might create a negative image with the bank with regards to your capacity to manage your finances. In such a situation, the bank might also think that your chances of defaulting on your payments are very high. As a result, your credit score will get reduced, making it harder for you to secure a loan.

On the other hand, if you have a low credit utilisation ratio, it implies that you are capable of managing money and can pay it back in full on time. This would increase your credit score, which will allow you to secure a loan easily.

If you make transactions that take the bill beyond the credit card maximum limit, the bank levies credit card over limit charges against your card. This charge has a negative impact on the credit score, which again reduces your chances of loan approval.

Benefits of Increasing the Credit Card Limit

Now that you know how to increase your credit limit, here is why you should consider increasing your card’s credit limit-

  • If you spend the same but have more credit available on your card, your credit utilisation ratio will decrease which will improve your credit score.

  • Higher credit, low utilisation ratio, and better credit score will improve your chances of getting loan approval in the future.

  • Having more credit available on your card can be useful in case of emergencies such as financial or health emergencies.

  • Cards with higher credit usually come with perks such as premium memberships, rewards, lounge access, etc.

How Does Your Credit Card Limit Affect the Credit Score

Your credit limit has a direct impact on your credit score based on your borrowing and repayment patterns. If you purchase within the credit limit (maximum 30% of the total credit limit) your credit score will improve. As a result, banks and other lenders would be able to trust you more. On the other hand, if you spend more than your credit limit, you have to pay an over-limit fee and your credit score would be negatively impacted. This would also hamper your chances of securing a loan in the future as you would be considered as someone who might be unable to manage their finances well. Also, in case you wish to convert your purchases over the credit limit into EMI, your available credit limit will be reduced significantly. The blocked limit would only be replenished as and when the dues are cleared.

FAQs on Credit Card Limit

  • ✔️How is my credit card limit decided?

    The credit card limit is decided based on the yearly income, age, the 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 can be the reasons that my CC limit increase is denied?

    Requests for credit card limit increase can be denied if you are irregular with your credit card payments, have a high credit utilisation ratio, or a low credit score.

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