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.