Increased credit card limit

xyx2000

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[OP]
Regulars
Oct 21, 2005
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I got my credit card limit increased to 8 lakhs by accident.

I got a call from my relationship manager, I hear him say "Ek lakh" so i thought limit will be increased from 2.5 lakhs to 3.5 lakhs, he meant 8 lakhs, it was done on phone througth ivrs , cam there be any issues with a such a large limit which i do not require?
I have potentially a bigger amount that i could loose in case of a card fraud.
 

Sushubh

Administrator
Oct 29, 2004
415,562
12,856
Gurugram
well that's one thing. but having a high limit can come very handy in times of medical emergencies. i found this out 2-3 years ago.
i do not know how add-on cards work. maybe check with your bank if you can get an add-on card with smaller flexible limit for your primary usage?
 

raj2007

Chennai
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Feb 27, 2009
2,464
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Chennai
I have 2 Add-ON cards. One for offline and other for online shopping with required credit limit set.
Never used primary card for any use which has 100% credit limit to which i can't set low credit limit.
 


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igloo

Not just Internet.
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Sep 5, 2008
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After introduction of pin for local offline transactions, higher credit limit is a boon only.
Which card co? Is it hdfc?
 

madhusudhan7

leaguemaddy
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Aug 10, 2008
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Bangalore
Higher limits on unsecured lending instruments such as Credit Cards may also mean a unnecessary exposure for you personally.

This may be an issue when you apply for bigger, secured loans (such as home loans).
The bank / lender also look at your total credit exposure and more importantly your utilisation (spend habits) to assess your credit worthiness.

But it also comes down to your income as well, there's nothing to worry if you are on the higher income bands.

Just out of curiosity, which annual income band do you fall in:
<6 lakhs p.a
6-10 lakhs
10-15 lakhs
>15 lakhs

*Because it's very unusual for bank to increase limits from 2.5 lakhs to 8 lakhs in a single instance.
1. There are high chances you got several options in past but declined to upgrade your limit.
2. Your valid earnings have increased substantially overall.
3. Your holdings in the bank, especially the long term investments increased substantially in recent times.

P.S: Bank usually don't make these mistakes of increasing several lakhs in error, instead of say 1 lakh in your case. These kind of upgrade options are system triggered, based on analytics and usually not controlled / editable by normal employees.

Say even in a test case of HDFC, known for increasing credit limits quiet easily:
It took 12-13 years to increase the credit limit from a modest 40k to just over 5 lakhs.
- they upgraded from the normal / entry card to Regalia, one of their finest (all the way from Gold > Platinum > Titanium > etc. to Regalia finally).
The person's income also increased more than 10 folds from around 1.5 lakhs to >15 lakhs during this period and he also maintained a very healthy credit record with the bank and otherwise in general credit ratings.
 
Last edited:

xyx2000

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[OP]
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Oct 21, 2005
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It wasnt a mistake by the employee, he said 8 lakhs , i misheard it as ek lakh. I probably would have declined if i heard it right.
 


xyx2000

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[OP]
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Oct 21, 2005
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Higher limits on unsecured lending instruments such as Credit Cards may also mean a unnecessary exposure for you personally.
Can you elaborate on this ? What unnecessary exposure?
 

madhusudhan7

leaguemaddy
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Aug 10, 2008
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Bangalore
Can you elaborate on this ? What unnecessary exposure?
This part explains it:

This may be an issue when you apply for bigger, secured loans (such as home loans).
The bank / lender also look at your total credit exposure and more importantly your utilisation (spend habits) to assess your credit worthiness.
But it also comes down to your income as well, there's nothing to worry if you are on the higher income bands.

Also, please consider answering this;
Just out of curiosity, which annual income band do you fall in:
<6 lakhs p.a
6-10 lakhs
10-15 lakhs
>15 lakhs