With high salary, you will get a high credit limit on your credit card! This is the biggest delusion among everyone as there are so many individuals who have very low credit limit even though they are handsomely paid. The reason behind banks and other financial institutions offering low credit limit to highly paid individuals is that they set the credit limit on a few important factors, which are not entirely based on just the salary drawn.
What is credit limit?
A credit limit is the amount at maximum that a cardholder can borrow on their credit card. It is the bank or financial institution the credit card holder approaches, which decides the credit limit and approves the same after reviewing certain financial aspects of the applicant.
How is your credit limit decided?
Credit score plays an important role in deciding one's credit limit. Banks refer to the individual's credit score before sanctioning them their credit limit. The process starts with the applicant filling out the form providing income details and KYC documents.
The bank checks the applicant's CIBIL score to gauge their credit history and behavior. Moreover, if the applicant's CIBIL score and credit history matches up to the criteria of the card issuer, the process is accelerated to decide the credit limit to be granted to the person.
How to get a higher credit limit on your credit card?
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