Credit Cards have become the norm globally, going beyond convenience to become a reliable financial instrument. For most, they help balance short-term incomes and expenditures efficiently. When used responsibly, Credit Cards can help plan aspirational-expenditure, earn rewards, and build credibility.
They have also become a primary measure to assess a customer's credit history by monitoring usage, timely repayment patterns, among other parameters. A good CIBIL credit score is an important parameter to determine if you’re eligible for a credit limit increase on your card.
Why do you need an enhanced credit limit?
As banks issue cards with a maximum limit, you may find yourself in a tight spot as your expenses increase over time. You don’t need to consider applying for a new card for this purpose. There are several benefits of Credit Card limit enhancement on your existing card you could look at instead.
A quick look at the benefits of Credit Card limit enhancement:
1. No hassle of managing multiple Credit Cards
By opting for a credit limit increase on your existing card, you do not need to go into the hassles of managing multiple cards. You need not remember many pins, manage different credit payment cycles, track expenditures in parallel, and remember to pay on time. Instead, with all your credit needs fulfilled by a single card, you can plan, monitor, and control your expenditures seamlessly.
2. Improved credit scores
Seeking a Credit Card limit enhancement while managing the same level of expenses, leads to lower credit utilisation. Low credit utilisation is often viewed as a characteristic of a responsible borrower and is valued higher in credit scores. Thereby, you can benefit from improved credit scores through Credit Card limit enhancements.
3. Easier access to get more loans
Given that Credit Card payment history adds to a customer's creditworthiness, having a long history of timely payments on one card is much more valuable than split credit history among old and new credit cards. Maintaining one card wherein you seek enhancement as and when required, gives more confidence to potential lenders, thereby, receiving access to more funds with ease.
4. Handy in case of emergencies
In case of unprecedented emergencies or unplanned expenditures, higher credit limits go a long way. As an instrument, Credit Card offers access to capital instantaneously unlike other loans and advances which assist in navigating quickly through critical financial emergencies.
5. Better Rewards
Credit Cards by nature are very favourable to customers who spend and pay back regularly. Also, by not splitting your expenses across multiple cards, you have an added advantage. Some higher ticket size expenditures may get you better rewards, including extended warranties, price protection and more on select products.
The benefits of Credit Card limit enhancements are endless and are rewarding to customers who make use of such credit limit increases prudently. Banks like HDFC Bank, have also made applying for such improvements seamless, allowing existing Credt Card customers to opt for Credit Card limit enhancements at the click of a button just by logging into NetBanking.
Applying for a limit enhancement has never been this effortless.
Log in to your HDFC Bank NetBanking and Get Started! Follow this easy 5-step process for Credit Card limit enhancements:
You can read more on how to enhance your Credit Card limit here.
Looking to enchance your current HDFC Bank Credit Card limit? Click here to start now!
* Terms & conditions apply. Credit Card approvals are at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
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