June 16, 2024
New Delhi
Finance How to

How to Increase Kotak Credit Card Limit?

Increase Kotak Credit card limit

How to Increase Kotak Credit Card Limit? One of the most well-known cashless payment methods is the use of credit cards, which let you make purchases and earn fantastic incentives. You have a lot of options because so many card issuers are flooding the market.

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Kotak Mahindra Bank is one such issuer that offers a selection of credit cards to meet the expanding needs of modern consumers. Using a Kotak credit card might result in lucrative rewards for anything from eating to traveling.

Credit Cards of Kotak Mahindra

You have unique access to a variety of benefits when you use a Kotak credit card. You will gain access to airport lounges, earn rewards points, receive cashback, be exempt from fuel surcharges, and receive free cinema tickets, to mention a few advantages. Also, keeping your wants and way of life in mind, Kotak developed these cards. From traveling to shopping, you have a variety of options to think about.

Eligibility Criteria For Applying For a Kotak Credit Card

Apply for a Kotak credit card via Bajaj Markets or the lender’s website. To avoid hassles, keep in mind the following eligibility requirements: These settings change depending on the card. Observe the following criteria:

  • To apply for a credit card at Kotak Mahindra Bank, the applicant should be at least 18 years of age.
  • The applicant for the credit card must be self-employed or employed by a company.
  • You must reside in India.
  • You need to earn at least the minimum level.

Documents for Kotak Mahindra Credit Card

Once you’ve met the requirements, submit the needed paperwork for speedy card approval.

  • Identification documents like an Aadhaar card, a passport, a PAN card, a voter ID, etc.
  • Documents used as proof of address include utility bills, passports, and Aadhaar cards.
  • The most recent pay slip is evidence of income.
  • ITR copies are the most recent for self-employed

Factors for Improving Kotak Bank Credit Card Limits 

Your available balance cannot exceed the credit limit set by Kotak Mahindra Bank. Your credit card limit will be decided by the bank, but you can always ask for an increase in the future. You will incur an over-limit fee, and your credit score will suffer if you use your credit card to make a purchase that is greater than your credit limit. The important points for increasing your credit limit are:

  • Possessing a high credit score: If your credit score is high, you will increase your creditworthiness. The way you manage your credit limit has an impact on your credit score. The reason for this is that the bank informs the credit bureaus each month of the credit limit and credit usage ratio. Consequently, if your credit utilization ratio is high, your credit limit will go down.
  • Income: Your paying capacity is an important factor in determining your credit card limit. The more you maintain a bank balance, the higher your credit card limit.
  • The limit on your other credit cards: Banks also take into account credit indications from other credit card issuers when determining the limit on your credit card. Therefore, if you apply for a new card, they will take into account the credit limit offered on your current cards. A bank may offer you a large credit limit on your new card if you are currently a customer of the institution.
  • Time Consideration: Another important aspect is time. Long-term bank customers may be eligible for large credit limits and favorable credit reports. The bank may still think about giving the consumer a credit limit with a high spending limit, even if they have never had a debt with them before. Another possibility is that the economy’s credit policy has altered, in which case banks must exercise greater caution when extending credit. There is a difference between the credit card limit set two years ago and the one set this year.

How to Increase Kotak Credit Card Limit

These are the methods to request an Increase Kotak Credit Card Limit. There are two ways a credit cardholder can increase the credit limit on his card:

  1. By going to the branch: Kotak Bank clients can always seek assistance with their credit card limit by going to the bank’s branch. When visiting the branch, you must have the aforementioned documentation with you so that the bank can determine if you qualify for a greater limit or not.
  2. Calling the customer care number: 1860-266-2666 is the 24-hour customer care number that clients can use to contact an agent to request an increase in their credit card limit. The representative will outline the entire process and provide you with all the paperwork needed to meet the eligibility requirements.

Facts Does The Bank Consider to Increase Credit Limit? 

You can ask the bank to raise your credit limit, or the bank might do so after reviewing your credit report. The bank might not raise your credit limit if you are a defaulter or have a high credit utilization ratio. Therefore, your best chance of getting a credit limit increase is to maintain a strong credit score and credit history. These are the methods to request an increase in the credit card limit.

  1. To benefit from a higher credit card limit, you must maintain a high credit score on CIBIL. Use your credit card to pay for groceries, subscriptions, and dining expenses while making on-time credit card payments. It will demonstrate your creditworthiness and support raising your CIBIL score.
  2. Prior to asking for a rise in your credit card limit, it will be best if you can lessen your financial commitments.
  3. It’s important to pay your debts on schedule. Never skip a credit card or loan EMI. It is best to always make a full payment on your credit card balance. The ability to repay debt is ensured by a high salary.
  4. When you get a pay raise or find another source of money to improve your income, you can request an increase in the credit card limit. The applicant’s salary has a significant impact on how much credit a card will allow.
  5. Don’t use up all the available credit on your card. Maintain a 30–40% credit utilisation which is considered good for maintaining a good credit score.
  6. Regardless of the credit limit, accept the new credit card if your bank offers it. It demonstrates your bank’s faith in your ability to pay back the credit. Additionally, the bank might soon raise your credit limit. A new credit card that has a higher credit limit than your present card may be applied for.
  7. If you want to raise your credit limit, you can always ask the bank. The explanation you give and your history of on-time payments are two factors that many banks will consider when deciding whether to extend the credit limit on your credit card. The applicant’s past debts and repayment history are also taken into account by the bank.
  8. Keep up with your payments on time. Most banks will automatically raise your credit card’s limit if you make prompt and complete payments on schedule.

Conclusion

Therefore, before putting a credit limit on your cards, companies know what you’re looking for and how effectively you can manage your credit. Kotak Mahindra Bank automatically Increases Kotak Credit Card Limit if it finds that customers are sincere about the repayment and their credit history is good. The bank periodically examines the customer’s spending habits. Cardholders with an excellent credit utilization percentage and no payment defaults will receive an offer directly from the bank.

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