Lower limit credit card holders are also credit card holders

[Ramesh Satta]

Everyone discussing about high limit and top cards, also there might be people with 20k limit and basic card and looking for upgrade or limit enhancement. So far I'vent found any such thread about these people. Even here the discussions are only happening on high limit or card. Then where will lower card or limit people need to go? Post some suggestions on limit enhancement for 20k to 50k and updgradation of basic card to regular cards and also about credit score of 650-750 (that too taking CRIF and Equifax into consideration) hacks to get card. Limits of people here are only of Lakhs and discussions are of only premium card variants. 🙏🏽

 

[Chaitanya-a]

Your post is thoughtful but let me tell you that whenever you have doubt about anything, don't hesitate to ask here. Your query will be addressed (if anyone has the answer) irrespective of limit on your credit card.

And there's no seperate rule for limit enhancement based on low limit or high limit cardholders. It is totally organic process by bank and depends on your credit profile.

For example I too have 15k Axis card whereas 3L ICICI Card. Most of the people here have started from low limit only. It takes time to create a good credit profile.

 

[Joker]

@TechnoFino @Subhankar A nice idea to start a separate section for entry level card & low CIBIL score queries.

 

[hks789]

For beginners(especially people who are just starting their careers), banks normally give credit limit based on their initial income. As you continue using your card, your credit history will grow. The banks usually gives LE or upgrades every 1-2 years.

Outside this, as you also grow in your career, you earn better and when you share your latest income details with the banks you will get even better offers.
All of this is organic.

Once you have a decent credit history and a card with decent limit. Then you can leapfrog with card to card applications and expand your portfolio.

 

[V360]

Everyone discussing about high limit and top cards, also there might be people with 20k limit and basic card and looking for upgrade or limit enhancement. So far I'vent found any such thread about these people. Even here the discussions are only happening on high limit or card. Then where will lower card or limit people need to go? Post some suggestions on limit enhancement for 20k to 50k and updgradation of basic card to regular cards and also about credit score of 650-750 (that too taking CRIF and Equifax into consideration) hacks to get card. Limits of people here are only of Lakhs and discussions are of only premium card variants. 🙏🏽

I may sound a bit philosophical - but why have you categorized yourself as an individual who holds a CC with low credit limit. Is this the only way you look at your life.

Even if you have a CC with high limit and not enough income, then what will you do with such limit. Spend the money and become bankrupt and then take loan to repay another loan.

Problem lies in your thought. CC does not define anyone's status; your thoughts do.

Also, if one Bank has given a CC with low limit and you have enough income to justify to get a higher limit CC from another Bank, why don't you try that first, instead of categorizing yourself?

This forum is not categorized as Lower class, Middle class, Upper Middle class, Affluent, HNIs. etc. Please do not encourage one.

 

[Bodhi]

For beginners(especially people who are just starting their careers), banks normally give credit limit based on their initial income. As you continue using your card, your credit history will grow. The banks usually gives LE or upgrades every 1-2 years.

Outside this, as you also grow in your career, you earn better and when you share your latest income details with the banks you will get even better offers.
All of this is organic.

Once you have a decent credit history and a card with decent limit. Then you can leapfrog with card to card applications and expand your portfolio.

Well put forth @hariks789

 

[vip3rc5]

I'm someone who started with BNPL back in 2017 with limit of 2000 and my first CC limit 80K and now holding 9 cards all with limit greater than 1.5 lakhs with the highest being 5.7 Lakh (All Unsecured, 4 Cards were pre approved), Here are some tips I can share -

1. Start your journey with anything, if you are just a student get BNPL, I know many people say it's bad for your credit history and it's not good, but if you don't have any other option just opt for it, use it and close it in the future, It will at least start your credit history journey. I started with Red Carpet app (Not sure how many people have heard about it)
2. Keep utilization low, use your credit cards like Debit Cards at the beginning, don't spent the money which you can't pay. I still try to follow this habit 80% of the time, by not spending the money I don't have or can't pay back.
3. Always pay back the full amount if possible, try to avoid paying only the minimum due amount, This shows the banking institute that you are responsible with your credit product
4. Also let your utilization get reported to Credit Institutes!. You need to have High number of timely payments in your credit report. For eg. if your approved limit is 20K, use 3k of it and let it be reported to the credit institutes and pay it off when the bill is generated, This will increase your timely payment count across different credit lending institutes.
5. Don't chase for Premium Cards unless you have the spend to justify it. Like Axis Ace is a really rewarding card and it is not even a premium card. Just get a card and use it even if it's reward ratio is not that great. The idea is to create a good credit history.
My approved limit back in 2017 was 2000. Just 2000. I was in 2nd year of university back then, but I did got to know from seniors back then that CIBIL and Credit Score is a Bird which you need to catch early.

One benefit I had from having CIBIL Score already generated before I joined my first job is that my Credit Card Application was very easily approved and I was assigned the limit of 80K which was more than I was expecting.
Sorry if this post is very long.

 

[Bodhi]

I'm someone who started with BNPL back in 2017 with limit of 2000 and my first CC limit 80K and now holding 9 cards all with limit greater than 1.5 lakhs with the highest being 5.7 Lakh (All Unsecured, 4 Cards were pre approved), Here are some tips I can share -

1. Start your journey with anything, if you are just a student get BNPL, I know many people say it's bad for your credit history and it's not good, but if you don't have any other option just opt for it, use it and close it in the future, It will at least start your credit history journey. I started with Red Carpet app (Not sure how many people have heard about it)
2. Keep utilization low, use your credit cards like Debit Cards at the beginning, don't spent the money which you can't pay. I still try to follow this habit 80% of the time, by not spending the money I don't have or can't pay back.
3. Always pay back the full amount if possible, try to avoid paying only the minimum due amount, This shows the banking institute that you are responsible with your credit product
4. Also let your utilization get reported to Credit Institutes!. You need to have High number of timely payments in your credit report. For eg. if your approved limit is 20K, use 3k of it and let it be reported to the credit institutes and pay it off when the bill is generated, This will increase your timely payment count across different credit lending institutes.
5. Don't chase for Premium Cards unless you have the spend to justify it. Like Axis Ace is a really rewarding card and it is not even a premium card. Just get a card and use it even if it's reward ratio is not that great. The idea is to create a good credit history.
My approved limit back in 2017 was 2000. Just 2000. I was in 2nd year of university back then, but I did got to know from seniors back then that CIBIL and Credit Score is a Bird which you need to catch early.

One benefit I had from having CIBIL Score already generated before I joined my first job is that my Credit Card Application was very easily approved and I was assigned the limit of 80K which was more than I was expecting.
Sorry if this post is very long.

Beautifully written @vip3rc5

Insightful and encouraging!

 

[srichaitanya]

Everyone discussing about high limit and top cards, also there might be people with 20k limit and basic card and looking for upgrade or limit enhancement. So far I'vent found any such thread about these people. Even here the discussions are only happening on high limit or card. Then where will lower card or limit people need to go? Post some suggestions on limit enhancement for 20k to 50k and updgradation of basic card to regular cards and also about credit score of 650-750 (that too taking CRIF and Equifax into consideration) hacks to get card. Limits of people here are only of Lakhs and discussions are of only premium card variants. 🙏🏽

Mostly everyone starts from basic cards and low limits only. Depending on your usage, banks will offer limit enhancement every 6 months or one year. Don't go after premium cards if you don't have high spends. Build your credit profile and do timely full payments of CC bills and CIBIL score will improve.

 

[Saif77]

Income Flow >> Credit Limit.

Income flow ke peeche bhagoo, Credit Limit jhak maarke peeche aayegi.

 

[sgoyal9]

As far as I have seen, there really is no rhyme and rhythm to how the limits for credit cards are processed. My suggestion would be to get your card and use it sparingly but consistently. Try to go for a limit enhancement inquiry after 6 months, if it still does not work then use your now existing credit history and try to get another credit card from a different provider.

Otherwise, I cannot even say that income itself is enough for a good limit. Maybe contacts in the banks might be the best way?

Why I say income itself is not enough is because of two use cases I have seen:

1. I have a SBI Aurum credit card with a very high credit limit. I got a SBI cashback card with a limit of 10K 😄
   
2. My brother had a pre-approved offer for Axis Magnus. He decided to go for an Ace instead. Got a limit of 15K

 

[vip3rc5]

As far as I have seen, there really is no rhyme and rhythm to how the limits for credit cards are processed. My suggestion would be to get your card and use it sparingly but consistently. Try to go for a limit enhancement inquiry after 6 months, if it still does not work then use your now existing credit history and try to get another credit card from a different provider.

Otherwise, I cannot even say that income itself is enough for a good limit. Maybe contacts in the banks might be the best way?

Why I say income itself is not enough is because of two use cases I have seen:

1. I have a SBI Aurum credit card with a very high credit limit. I got a SBI cashback card with a limit of 10K 😄
2. My brother had a pre-approved offer for Axis Magnus. He decided to go for an Ace instead. Got a limit of 15K

Pre approved Magnus, but went for ACE and got limit of 15K. Axis bank is notorious for giving low limit but that's a shame.