Is having low credit limit normal?

[krizxrofficial]

Hi all,

I have been using Axis Ace credit card since 2021 and I have followed the 30% usage rule since then. Occasionally it would be more than 30% usage but I would always pay my bills on time. Initially I was offered 26K credit limit (which matched my salary at that time) but it has been almost 2.5 years and they have only increased my credit limit to 52K.

Further, I'd like to add that I have added the following credit cards to my wallet:

2022 Axis Flipkart (offered LTF) - 26K limit initially, matched and shared Ace's limit now (52K)
2023 RBL World Safari - 50K
2023 OneCard LTF - 50K
2023 ICICI APay Card LTF - 2.6L
2023 Kotak White FYF - 46K

It's very frustrating to miss out on offers on items that exceed my credit limit and I have to pay using my debit cards. Is there any reason why I am getting such low credit limit on any card I apply? My credit score is always above 780. I distribute my spendings on all my cards depending on discounts and category. My salary has also increased significantly since 2021. I rarely convert any payments to EMI. I don't know what's wrong. Should I close a few cards to try and see if that will help my credit limit increase? I have seen a few friends get limits nearly 10x of their salary for some reason from APay card or AU card and I have no idea how or why. They also have a similar credit score as mine.

TL;DR - My credit limit feels very low compared to others even though my credit score and credit history is good. Is there any reason why?

UPDATE: Finally, someone heard my wishes at ICICI 🥺

 

[SpiesCan'tCatchMe]

Umm most people would say be patient.
But you can try sending them your salary slip or ITR.
And get your hands on Amazon pay cc asap coz icici gives LE quite leniently.
Even kotak gives LE often.

 

[krizxrofficial]

Umm most people would say be patient.
But you can try sending them your salary slip or ITR.
And get your hands on Amazon pay cc asap coz icici gives LE quite leniently.
Even kotak gives LE often.

Thank you for your reply.

I have uploaded my salary slips for Kotak (since it had an option) and right now I am not thinking of asking for asking the bank for limit increase because there's a chance my CIBIL will go down this month. Maybe after 3 months I'll give it a shot.

I am really patient with the limit but it's sad to let so many offers go because of credit limit. 🙁

 

[D₹V]

Umm most people would say be patient.
But you can try sending them your salary slip or ITR.
And get your hands on Amazon pay cc asap coz icici gives LE quite leniently.
Even kotak gives LE often.

+1
Good things take time.

Kotak & ICICI will increase limit insanely soon.

You should send your salary slip/ITR to axis bank pno@axisbank.com as they're enhancing limit recently via this method which is subject to approval.

 

[krizxrofficial]

+1
Good things take time.

Kotak & ICICI will increase limit insanely soon.

You should send your salary slip/ITR to axis bank pno@axisbank.com as they're enhancing limit recently via this method which is subject to approval.

Thank you for the info! I will definitely try this after 3 months. e_e Maybe soon I can reach my goal of applying for Magnus via C2C basis based on the limit.

 

[SSV]

Hi all,

I have been using Axis Ace credit card since 2021 and I have followed the 30% usage rule since then. Occasionally it would be more than 30% usage but I would always pay my bills on time. Initially I was offered 26K credit limit (which matched my salary at that time) but it has been almost 2.5 years and they have only increased my credit limit to 52K.

Further, I'd like to add that I have added the following credit cards to my wallet:

2022 Axis Flipkart (offered LTF) - 26K limit initially, matched and shared Ace's limit now (52K)
2023 RBL World Safari - 50K
2023 OneCard LTF - 50K
2023 ICICI APay Card LTF - not yet received
2023 Kotak White FYF - 46K

It's very frustrating to miss out on offers on items that exceed my credit limit and I have to pay using my debit cards. Is there any reason why I am getting such low credit limit on any card I apply? My credit score is always above 780. I distribute my spendings on all my cards depending on discounts and category. My salary has also increased significantly since 2021. I rarely convert any payments to EMI. I don't know what's wrong. Should I close a few cards to try and see if that will help my credit limit increase? I have seen a few friends get limits nearly 10x of their salary for some reason from APay card or AU card and I have no idea how or why. They also have a similar credit score as mine.

TL;DR - My credit limit feels very low compared to others even though my credit score and credit history is good. Is there any reason why?

---Low credit normal??
Yes, when you start your credit journey... Having sais that your credit age is 2.5 years which means you are at the cusp of getting a bit more offers... say in another 6 months... so be patinet for another 6 months and stop applying after your APAY...

-- Big purchases
About your big purchases beyond your CL, in most of the cases you can prepay the card and load up your CL and then make the purchase...


rest later..

 

[imdjay]

If you can afford the risk. Forget about the 30% rule for cards like ICICI. And spend around 80% and see. Try paying before month end and bill generation. Your credit limit will increase. That's happened to me. When I was not following this rule because of being unaware or irresponsible.

 

[krizxrofficial]

---Low credit normal??
Yes, when you start your credit journey... Having sais that your credit age is 2.5 years which means you are at the cusp of getting a bit more offers... say in another 6 months... so be patinet for another 6 months and stop applying after your APAY...

-- Big purchases
About your big purchases beyond your CL, in most of the cases you can prepay the card and load up your CL and then make the purchase...


rest later..

Thank you for your insight. Although my journey with CCs started 2.5 years ago, I had Flipkart Pay Later account before that and they issued a "Personal Loan" under my name. Considering that, my credit age is 3 years+, but I get what you're saying. Also, it's a good idea to prepay the card!

If you can afford the risk. Forget about the 30% rule for cards like ICICI. And spend around 80% and see. Try paying before month end and bill generation. Your credit limit will increase. That's happened to me. When I was not following this rule because of being unaware or irresponsible.

Interesting point of view. My spends aren't really that much as of now but I'll seize the opportunity whenever I get the chance.

 

[SSV]

Interesting point of view. My spends aren't really that much as of now but I'll seize the opportunity whenever I get the chance.

General strategy is , once or twice you need to max out the CL in a statement period and then come back to under 30% rule.. CIBIL goes dwon a bit during that time , but will recover shortly after that...

 

[prashu]

---Low credit normal??
Yes, when you start your credit journey... Having sais that your credit age is 2.5 years which means you are at the cusp of getting a bit more offers... say in another 6 months... so be patinet for another 6 months and stop applying after your APAY...

-- Big purchases
About your big purchases beyond your CL, in most of the cases you can prepay the card and load up your CL and then make the purchase...


rest later..

If my credit limit is 50k and i want to purchase a tv/phone worth 80k. Can i load advance 30k into the card and make purchases ? Does this work in all cards ?

 

[SSV]

If my credit limit is 50k and i want to purchase a tv/phone worth 80k. Can i load advance 30k into the card and make purchases ? Does this work in all cards ?

Yes, thats what I mean...
Does it work in all cards? I dont know..
but the cards that I have used , it worked...
There is one way to find out.. Just try to load Rs 100 when you have full CL available and see if it goes thru..

i want to purchase a tv/phone worth 80k. Can i load advance 30k into the card and make purchases

Actaully if you do this , there are more chances of LE, as system detects you are buying in one single transaction for more than allowed CL..
and if you repay it in time , then more chances of LE.

 

[imdjay]

Just try to load Rs 100 when you have full CL available and see if it goes thru

I think you can add the excess amount to your card.

But can't spend more than your actual CL even if you have access funds.

 

[SSV]

I think you can add the excess amount to your card.

But can't spend more than your actual CL even if you have access funds.

If my credit limit is 50k and i want to purchase a tv/phone worth 80k. Can i load advance 30k into the card and make purchases ? Does this work in all cards ?

That also he can try once.. but one of my friends did it for AXIS bank and it worked... that is why I said I don't know whether it works for all banks..

In these circumstances, we could do onething, just call CC of the Bank and explain the situation and ask for if it is possible or not...
Here also it actaully works in our favor as we are indirectly asking for LE...

 

[Strange]

2023 Kotak White FYF - 46K

Kotak white with such low limit why did you get this paid card. Zen is better than white in terms of reward rate.

 

[Piyush_Jaiswal]

I think you can add the excess amount to your card.

But can't spend more than your actual CL even if you have access funds.

We can spend if we transact on the same day. The day you make excess payment, you can see your available limit is more than the assigned limit. The next day the credit limit is decreased to your original limit and you have excess balance in your account.

You can transact on that very day only. Check your available limit before transacting, if it is more than the assigned limit then you are good to go otherwise don't try.

 

[Piyush_Jaiswal]

TL;DR - My credit limit feels very low compared to others even though my credit score and credit history is good. Is there any reason why?

Credit Score doesn't actually matter after certain point of time. If you have any score above 750, that is good to go.

What actually matters is how much credit limit you have on you existing cards, if 1 lakh credit limit is shown in your Cibil then you will get your next cards around that limit only.

Your friends must have CCs from ICICI and Kotak already and have got LE frequently so when they apply for new cards, they get better limits.
These are some hidden perks of having Kotak and ICICI cards despite their low reward rate. 😂

 

[Avangerritesh]

I

If my credit limit is 50k and i want to purchase a tv/phone worth 80k. Can i load advance 30k into the card and make purchases ? Does this work in all cards ?

It does not works in icici

 

[Rohith-2009]

But we can't set the transaction limit more than CL. How can transact more than the transaction limit?

 

[SSV]

But we can't set the transaction limit more than CL. How can transact more than the transaction limit?

This is a very very valid point ..
It is now better to contact CC and get clarification... and they may give some temporary LE.

 

[Rohith-2009]

This is a very very valid point ..
It is now better to contact CC and get clarification... and they may give some temporary LE.

Na, cc will not be helpful in this case I think