Ways To Increase Credit Limit On HDFC Credit Cards
Many people's lives today depend on their credit cards in one way or another. And the presence of a credit card limit is one of the realities people must face. You know that you are not permitted to use your credit card permanently. There is a predefined credit card limit that you are not allowed to spend beyond. Your ability to make purchases may be restricted as a result.
Types of HDFC Credit Card Limit
Here are the three different types of HDFC bank credit card limits that can be obtained:
The total credit limit on HDFC Cards
Your HDFC Credit Card's total credit limit is the highest amount you are permitted to borrow. The limit will be reduced each time you make a payment by the purchase amount, and it will be restored as soon as you make a credit card payment.
Available Credit Limit for HDFC Cards
The amount of credit used for purchases as of the specified date is known as the available credit limit. As an example, if you have an HDFC card with a credit limit of 2 lakhs and you spend Rs. 60,000. The remaining credit limit is Rs. 140,000.
HDFC Card Cash Limit
The portion of your credit limit that can be taken out as cash is known as the cash limit. This limit is set for your credit card account. It should be noted that using a credit card to withdraw money is subject to applicable interest fees. For example, if the credit limit on your card is Rs. 2 lakh, the cash advance limit will typically range from 20% to 80% of that amount. If the cash limit is 20%, you can use your credit card to withdraw Rs. 40,000 in cash.
Suggestions for raising your credit card limit:
You can always use your credit card for regular shopping, to take that vacation abroad, to pay for your children's tuition, and to occasionally indulge in expensive dining out. Here are some suggestions for raising your credit card limit:
Requesting an increase in the credit limit on an existing card:
How do you do that? Can this be done? Your bank can fulfill your request, yes. If you request it, it might raise the credit limit on your current card. Thus, this will depend on several variables, including your income, credit history, and credit score. If you have multiple cards, it's critical to decide which one you want to raise the limit on.
Annual increase:
If you have made on-time payments on your balance, most banks will increase your credit limit each year. You can inquire about this with your bank. The majority of banks provide an annual increase. It can be beneficial to accept an annual credit limit increase even if you don’t need one. You’ll receive excellent rewards offers and you never know when you may require a higher credit limit.
Provide more information:
A change in your financial situation that might qualify you for a higher credit limit may occasionally go unnoticed by banks. For example, you may have recently received a sizable pay raise, but you’re still using your previous credit card at its current limit. If that occurs, you can inform your bank of this and request that they either raise your limit to reflect your changed financial situation. Or they can issue you a new credit card with a higher limit. Consolidating your accounts might also be helpful to give the bank a more complete economic picture. It's preferable to combine all of your bank accounts, for instance, if they each contain small amounts of money.
Bottom Line:
Higher credit limits are a fantastic way for customers to gain flexible spending options, but they should never be exceeded. Make sure to inform your credit card issuer of any changes in your income. This is especially true if you've recently received a pay raise or haven't requested an increase in your credit limit. Small steps like these might not seem to have much of an impact right away, but for many years, they can have a big impact on your credit score. Additionally, the more favorable lending options you have for achieving your future financial objectives, the better your credit score will perform, whether it's a mortgage or an auto loan.
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