What do you mean by credit card limit? – Kiran of Udaipur | Latest news from Udaipur

Credit card limit

Lately, the popularity of credit cards has increased at a breakneck pace. A growing number of Indians, especially millennials and young people, are warming up to the idea of ​​having a credit card with a bank account.

Although credit cards allow you to shop now and pay later, they are by no means unlimited. A credit card usually comes with a certain limit, beyond which you will not be able to use it again until you have settled the outstanding balances. So what exactly is the credit card limit? This is exactly what we will see in this article. Let’s find out.

Why apply for a credit card?

Before considering what credit card limit actually means, let’s first examine why individuals prefer to apply for a credit card.

The most compelling reason people choose to apply for a credit card has to do with the financial freedom it offers. As you have already seen above, a credit card allows you to buy goods and services immediately without having to pay for them immediately. You can instead choose to pay later. This can be extremely useful in situations where your current finances do not allow you to make purchases immediately.

About credit card limits

Now, coming to the limit of credit cards, the banks that issue these financial instruments set a particular limit, beyond which the cardholder will not be allowed to spend. For example, if the credit card limit is Rs. 50,000, you will be restricted from spending more than that amount.

Banks usually set a limit on credit cards to prevent the cardholder from spending beyond their repayment capacity. And this credit limit is not set arbitrarily either. Banks consider many factors when setting credit card limits. Here is a quick overview of a few of them.

  1. Applicant’s income and age
  2. The applicant’s financial debts
  3. Applicant’s credit history
  4. The applicant’s credit score

The higher the income and the better the individuals credit score and background, the higher the credit card limit tends to be.

About Credit Card Customer Service

If you have any doubts or questions regarding your credit card, the best way to answer or resolve them is to contact the credit card customer service number. This is a dedicated support line that you can call to get all your questions answered.

The credit card customer service number varies from bank to bank. Therefore, be sure to call your credit card service provider’s number. If you are unsure of your credit card provider’s number, all you have to do is visit their website to find out.

Alternatively, you can also contact your credit card service provider’s customer service via email. Again, you can find the email id on their website.


Whether you already have a credit card or are planning to get one in the future, always be sure to stay within your credit card limit. Exceeding the limit set by the bank can lead to heavy penalties or the blocking of your card.


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