Can you use your Credit Card to buy beyond your Card Limit?

What is a Credit Card Limit?

At any given time, the maximum amount you can pay with your credit card is the credit limit. In order to ensure that you can repay the money you borrow within the stipulated time without slipping into debt issues, banks determine credit limits. At the time of issuing a credit card, a variety of variables, including your credit score, debt-to-income ratio, loan on credit card, credit history etc, determine your credit card limit.

Although the credit limit is set by the bank at the time the card is issued, this limit is not set in stone and can be updated if you have a positive payment record, a credit score, or an increase in income. In fact, card issuers give cardholders themselves the option of revising their credit limit and setting a limit of their choice as long as it is within the card issuer’s overall limit. Banks don’t charge for setting or adjusting the cap, in most cases.

Axis Bank Credit Card Limit

The three axis bank credit card limit include- 

1. Axis Bank Card Total Credit Limit

The maximum spending you can do with an Axis Bank credit card is the total credit limit of the Axis Bank card. As you make any purchases against your Axis Bank credit card, the total credit cap decreases and is restored when you pay the credit card bill.

2. Axis Bank Card Available Credit Limit

This is the axis bank credit card limit on a specific day.

3. Axis Bank Card Cash Limit

The cash limit for the Axis Bank card is a part of the overall credit limit that can be withdrawn as cash for emergency use. It does, however, attract the applicable withdrawal fee and fee for Axis Bank Credit Card Cash.

How to increase Credit Card Limit

1. Use and pay as much as possible

If you are wondering how to increase credit card limit, then the bank will automatically raise the credit limit on your card if you regularly use your card and pay your bills in full and on time.

2. Income statement

There may be a situation where your income has risen, and your old credit card is still being used. In such cases, along with an improvement in the credit cap, you might approach the bank with your new payment slips and apply for a credit card upgrade.

3. Raise a request

If you submit a request to the bank to adjust your credit card limit, depending on the purpose you have given for the request, most banks accede to do so. You may use net banking  or visit the bank branch to figure out how to increase the credit card limit.

4. Get a new card

You may very well consider applying for a new credit card with a credit limit that is greater than your current card. Really, you shouldn’t find it too hard to get approved for a card with a higher credit limit if you have been making payments on time on your new credit card.

5. Pay your dues

Your credit score can improve if you pay your credit card bills on a regular and timely basis, and the bank will see you as a responsible cardholder. This also results in a larger credit card limit being given to you by banks.

6. Have a bit of patience

If you hold a credit card long enough, the credit limit on it is automatically raised by the bank. The only downside t with this approach is that you need to wait.