SBI Credit Card Limit Enhancement: Steps to Increase Your Credit Card Spending Limit
Last Updated : Sept. 6, 2023, 1:28 p.m.
The SBI has great credit card deals that cater to the diverse needs of all individuals. Not only do these cards have flexible conditions, but they also provide attractive rewards. However, once you opt for these cards, you should spend it wisely and stay within your credit card limit. The bank will fix your credit limit, which is the maximum amount of money you can spend through your credit card. The bank decides the credit card limit based on your credit report and overall financial profile.
While not exceeding the SBI credit limit is highly suggested, one may require access to higher credit. You can request the SBI credit card limit increase in such a case.
Ask for an SBI Credit Card Limit Increase: Steps to Follow
To increase SBI credit card limit, you can request a limit extension with the bank. You will get an extension depending on your credit history, credit score, and income level. However, if you are looking for a more permanent solution, follow the other steps below to get a better credit limit.
Use Your Card Smartly and Pay Your Credit Card Bills on Time
To undertake the SBI credit card limit increase, you should use your credit card smartly, staying within your current credit limit. Apart from that, you should also pay off your credit card bills and dues on time. Paying your dues on time will increase your credit score. Regularly using and paying dues on your card will show that bank that you are a responsible customer, which can help them provide you with a higher credit limit. If you want additional help tracking your dues, visit SBI credit card’s online portal or use the mobile app. All these will make you a trusty borrower and eligible for better and higher credits.
Inform SBI About Any Raise and Promotion
If you are an employee at a company and have recently received a pay rise or a promotion, you should provide those details to SBI. An increase in your income can lead to an SBI credit card limit increase. Often, the bank is unaware of your financial condition and may not approve the SBI credit card limit increase. Also, if you are a freelancer and have received an increase in your income, you should inform the same to increase SBI credit card limit.
Keep the Low Credit Utilisation Ratio Low
The credit utilisation ratio is the amount you have spent on your credit card divided by the total amount of credit available. To maintain a low credit utilisation ratio, ensure you spend your credit limit appropriately. Most financial experts suggest you keep your credit utilisation ratio below 30% to get exclusive rewards and undertake the SBI credit card limit increase. A low credit utilisation ratio will keep your bill affordable, make repayment easier, increase your credit score, and help with your SBI credit card limit increase request.
Pay off Your Additional Liabilities
If you have any additional liabilities like home or car loans, consider paying them off as early as possible. Paying off your additional dues and providing this information to SBI will give them the confidence that you are capable of paying off your outstanding dues and will be able to handle an extended credit limit.
Apply for a New Credit Card
If your SBI credit card limit increase request is not approved, you may apply for a new credit card. A new credit card will provide you with an additional credit limit, which you can use to pay off your expenses. However, you should have a good credit score and a stable income to apply for a new credit card. Moreover, managing multiple credit cards can be challenging. You will have to remember multiple pins, CVVs and other additional details.
Conclusion
By extending the credit card limit on your credit card , you will be able to get more credit and have more chances of winning rewards on your spending and purchases. However, always remember that your current credit management will influence your credit report and the future scope of loans and credits. So, when you request an SBI credit card limit increase, keep a strong repayment strategy ready.
FAQs
1. Will SBI provide an extension on my credit card without applying for it?
SBI provides an annual increase on their credit card limits. This decision is based on your current income level, your credit score, your credit utilisation ratio, and the amount of your outstanding dues. If you pay off your dues on time and show SBI that you are a responsible customer, they will increase the credit card limit without applying for it.
2. What happens if I spend above my credit limit?
If you spend above your credit limit, you must pay a penalty to SBI. The amount of the penalty depends on the type of card you own. Crossing your credit limit will not only put an additional financial burden on you but will also decrease your chances of getting an SBI credit card increase.
3. What are the reasons for SBI to decline my credit card limit increase application?
There might be many reasons behind the rejection of your SBI credit card limit increase application. Some of these reasons may be the lack of stable income, a high credit utilisation ratio or the inability to pay off outstanding dues on time.
4. SBI has approved my request for an SBI credit card limit increase. When will the credit card limit extension be reflected on my account?
It only takes a couple of days for SBI to increase SBI credit card limit after your application has been approved. You will get a message from the bank informing the same.
5. Is a low credit limit a good idea?
A low credit limit will restrict your spending capacity and provide fewer SBI rewards. However, if you think you cannot handle a high credit limit, it is advisable to keep it low.