Rationale for Credit limit enhancement.

[drsel]

I am giving the main criteria for credit card limit enhancement.
I have made this a Wiki post, so feel free to add more criteria and modify the weightage of each criterion.
The weightage is expressed in percent before each criterion, such that the total is 100%--

40% High Card spends / High MDR income for the bank (-10% if you've defaults in your payments records)
30% High income tax returns/salary ( +5% if salary/business account is in same bank)
10% Increasing spends every month
10% High CIBIL score / increasing gradually
00% Full payment on time, ideally just before the statement date, so that credit utilisation is zero. (This will help you a CIBIL score not limit enhancement)
10% Luck

 

[Wealth is my birth right!]

I am giving the main criteria for credit card limit enhancement.
I have made this a Wiki post, so feel free to add more criteria and modify the weightage of each criterion.
The weightage is expressed in percent before each criterion--
0%. Hi spends every month.
10% Increasing spends every month
0% High CIBIL score.
10%. CIBIL score increasing gradually
10%. Full payment on time, ideally just before the statement date, so that credit utilisation is zero.
40% Spends on categories which are very profitable for the bank.
10%. High income tax returns/salary
20%. Income tax returns/salary increasing every year

Net to net all in all as per my discussion with a bank official who know personally he said that how much MDR a card user made bank earn in a quarter or half year they shortlist all card users a to z and order of a to g or h will get good LE

 

[Cosmicgaze]

I am giving the main criteria for credit card limit enhancement.
I have made this a Wiki post, so feel free to add more criteria and modify the weightage of each criterion.
The weightage is expressed in percent before each criterion, such that the total is 100%--

60% how much MDR income you generate for the bank
0%. Hi spends every month.
5%. Increasing spends every month
0%. High CIBIL score.
5%. CIBIL score increasing gradually
5%. Full payment on time, ideally just before the statement date, so that credit utilisation is zero.
10%. High income tax returns/salary
15%. Income tax returns/salary increasing every year

Could you explain further on the mdr aspect.

And also give some tips for card users that can help in getting enhancements.

Thanks for the post

 

[drsel]

Could you explain further on the mdr aspect.

And also give some tips for card users that can help in getting enhancements.

Thanks for the post

That is the profit the bank is making out of your card usage.
Some MCC like restaurants give a high commission to the bank and utilities give very low commission.
The banks will give limit enhancement to those customers who are spending a lot on the high MDR categories which give the highest commission to the banks.

they want to increase their MDR earnings.
So they increase the limit to tempt these high spenders to spend even more to boost their profits.
It is in their own interest to get them to spend more, as long as they are perceived to be zero risk to the bank because they always make full payments on time.
But this will cause a CIBIL hit

You can email the customer care for a limit enhancement by submitting very high income tax return or salary slip, to prove that you have the capacity to repay, in case you utilise the entire enhanced limit.

 

[denisjos]

I recently got a 50% LE from axis. I had a salary acc with Citi but I shifted it abt 3 months before and the remaining amt in account was abt 5k till recently. The cc in question is linked to the sal acc, it was my primary and only card for abt 4 yrs but since past 8-9 months no transactions at all expect for an offer during last month for 5k. But recently I received a ulip payout (not from axis) and due the some coincidences the amt ended up in axis account which is abt 8l and within 2 weeks I got a mail for LE. From 13.5l to 20.25l.
This LE doesn't fit into any points discussed above unless they mistook the credit for salary

 

[drsel]

You are lucky, they thought you got a big salary bonus

 

[Maikalal Jaikishan]

Does this apply to co branded cards as well?

For a period of two years or so, I put all of my spends on the ICICI Amazonpay card and I got not a single paisa LE. Granted the limit was already high and satisfactory to me to begin with, but I wouldn't complain about more, considering even my basic Kotak Urbane card has a limit close to 10L.

 

[cardy]

Sometimes it's confusing because a card from the drawer gets a limit enhancement and everyday cards are left out

 

[cardy]

I think there's rules
And there's no rules
Everything happens inbetween

 

[iamdhamo]

Axis ace and axis Airtel cards LE takes longs time

 

[card-shard]

I am giving the main criteria for credit card limit enhancement.
I have made this a Wiki post, so feel free to add more criteria and modify the weightage of each criterion.
The weightage is expressed in percent before each criterion, such that the total is 100%--

40% how much MDR income you generate for the bank
20%. High spends every month.
25%. Increasing spends every month
0%. High CIBIL score.
5%. CIBIL score increasing gradually
0%. Full payment on time, ideally just before the statement date, so that credit utilisation is zero. (This will help you a CIBIL score not limit enhancement)
10%. High income tax returns/salary

Add 40% luck, and adjust everything else.
Only that explains credit limit increase of cards barely used, and no auto-LE on card frequently being used.
Lots of people on this forum has also reported that they stopped using their go-to card, and after that within few months got auto-LE. 🤷‍♂️ 🤷‍♂️
(Higher salary/ITR + High spends with clean payment record definitely has significant impact on your overall limit)

As this has has happened to me as well:

Sometimes it's confusing because a card from the drawer gets a limit enhancement and everyday cards are left out

 

[CyberPsych]

I have a credit card from XYZ bank with low credit limit (50k) since months. I spend close to this limit every month. Can I get credit limit enhancement on this scenario any sooner? My other cards have morte than 1.5L limits with 3.1L as highest. Additionally, I got pay rise this month, will this trigger anything?

 

[drsel]

I have a credit card from XYZ bank with low credit limit (50k) since months. I spend close to this limit every month. Can I get credit limit enhancement on this scenario any sooner? My other cards have morte than 1.5L limits with 3.1L as highest. Additionally, I got pay rise this month, will this trigger anything?

You need to phone customer care and send your income tax returns by email
there will be a CIBIL hit and then they will increase your limit according to your income tax returns

 

[CyberPsych]

My ITR was on June 2024 and card applied on Aug 2024. Sending ITR will have same data, right (if they saw my income details linked to PAN while approving the card)?

 

[drsel]

My ITR was on June 2024 and card applied on Aug 2024. Sending ITR will have same data, right (if they saw my income details linked to PAN while approving the card)?

No.
credit card issuing banks cannot access your income tax return, unless you give it to them by email.
they will only see your CIBIL score

 

[cardy]

I have a credit card from XYZ bank with low credit limit (50k) since months. I spend close to this limit every month. Can I get credit limit enhancement on this scenario any sooner? My other cards have morte than 1.5L limits with 3.1L as highest. Additionally, I got pay rise this month, will this trigger anything?

And you don't need to mask the bank for sequrity reasons! Because it doesn't expose your financial data 😄😄😄

 

[CyberPsych]

And you don't need to mask the bank for sequrity reasons! Because it doesn't expose your financial data 😄😄😄

Some people reply based on how that specific bank behaves with LE, so I generalised it.

In my case bank is SBI.

 

[cardy]

Some people reply based on how that specific bank behaves with LE, so I generalised it.

In my case bank is SBI.

If you have applied as salaried you have to produce your current salary slips preferably 3months.

If you have applied as self employed you have to produce your current year ITR

to customer care email. They will increase.

 

[CyberPsych]

If you have applied as salaried you have to produce your current salary slips preferably 3months.

If you have applied as self employed you have to produce your current year ITR

to customer care email. They will increase.

Salaried. I will try with payslips