Is your HDFC credit card limit too low? Here’s how to get it increased | Mint
Source: Live Mint
A credit card limit is the maximum amount you can utilise on your credit card. Credit limit can impact your credit utilisation ratio which can then impact your credit score. If you have an HDFC Bank credit card and want to increase your credit limit, you can do it for absolutely free of charge. However, you are required to fulfil certain eligibility requirements to get your credit card limit increased.
Through phone banking:
- Open the HDFC Bank Mobile Banking app.
- Go to the Credit Card section.
- Check for the Limit Enhancement option and submit the request.
Through branch visit:
- Visit the nearest HDFC Bank branch.
- Carry relevant documents, such as income proof (latest salary slips, ITRs, or bank statements).
- Submit a formal request for credit limit enhancement.
Things to consider before you increase HDFC credit card limit
Use your card regularly: In order to be eligible for getting an increase in your credit limit, make sure that you have been using your credit card regularly.
Pay bills on time: Make sure that you pay your credit card bills timely as it demonstrates financial discipline and helps you increase your credit score.
Maintain a low credit utilisation ratio: A high credit utilisation ratio reflects poor debt management and high dependency on credit. Hence, it is advisable that you avoid spending more than 30% of your existing credit limit, as it will help you maintain a healthy credit profile. However, if you are facing trouble with a high ratio, an increase in credit limit can help you ease lower your ratio considering if you do not spend more.
Update income details: It is important that you keep on updating your income with the bank on a regular basis as it can help you reflect a strong financial position. This way you can assure the bank that you are capable of repaying the bills on time.
In conclusion, before applying for an increase in credit limit, you should evaluate your need and financial situation. If you have done prior planning, an increase of credit limit can be a great way to prepare for any emergencies in future and help you keep a healthy credit score.
However, if you are getting a higher credit limit, it also means you can be tempted to make spontaneous purchases. So, regardless of the credit limit, don’t make unnecessary transactions on your credit card and use it wisely.
(Note: Using a credit card carries its own set of risks)
