Is Your SBI Credit Limit Too Low? Learn How to Increase It Today

Imagine this: It’s the month's end, and you've precautiously spent your salary on paying rent, groceries, utility bills, weekend outings, and those “bas ye last wala Swiggy/Zomato” orders. Now, your salary account is almost empty (like a multiplex theatre on a Monday morning show). Although you’ve got a credit card, you’re a responsible cardholder, keeping it only for urgent expenses. 

You might start thinking that you’ve made it through and waiting for next month’s “Your salary has been credited” message. But, bam! Life throws a surprise expense your way. It may be a sudden medical emergency or your best friend’s wedding invitation (buy the mandatory suit for your yaar ki shaadi). You thought—time for my saviour, and picked out your credit card from the wallet. But just when you swiped it, the cashier said, “Sir, your card has been declined. Credit limit exceeded.” And you instantly shouted—OMG!

Isn't this imagination sound like a nightmare? This is why knowing your credit card limit and increasing it at the right time can save you from any financial hiccups. Almost all banks, including SBI, offer credit limit increase options to their eligible customers. However, not everyone knows how to take advantage of this facility if offered. So, if you own an SBI credit card or are planning to get one, let’s find out how to increase your SBI credit card limit and avoid any “card declined” disasters in the future.

Table of Contents:

• What is a Credit Card Limit?
• How SBI Determines Your Credit Limit?
• Factors Affecting Your SBI Credit Limit
• Benefits of Increasing SBI Credit Card Limit
• How to Increase SBI Credit Card Limit?
• Common Mistakes to Avoid While Requesting a Credit Limit Increase

What is a Credit Card Limit?

Before you learn how to increase credit card limit in SBI, first understand what it actually means.

A credit card limit is the maximum amount you're allowed to spend using your credit card. Your credit card limit is like the boundary set on your spending: the maximum amount you can spend using your credit card. 

For SBI credit cards, this limit is set based on your income, credit score, and spending habits. For instance, if your SBI card limit is ₹1 lakh, that’s the maximum you can spend until you clear your dues. 

But why settle for less when you can easily increase your SBI credit card limit? Let’s now learn exactly how SBI sets a credit limit for a credit card.

How SBI Determines Your Credit Limit?

Don’t get jealous if your friend’s SBI credit card limit is higher than yours, because SBI isn’t favouring anyone. It uses a detailed evaluation process to set your credit limit, considering the following factors:

• Income level: Higher income generally gets a higher credit limit. So, the next time you get a raise or switch to a better-paying job, remember to request an SBI credit limit increase.

• Credit history and CIBIL score: SBI checks your CIBIL score to see if you've been a responsible borrower. A high score can work wonders for your credit limit by making you more trustworthy to lenders.

• Repayment history: If you’ve been punctual with your credit card bill payments, SBI would consider you a reliable customer and may approve your SBI card limit increase request.

• Existing debts and liabilities: The fewer EMIs you have, the more room there will be for a credit card limit increase in SBI. Understand this as if someone is already drowning in a lot of EMIs, the bank might play safe by not increasing his/her credit limit.

• Spending patterns and card usage: If you regularly swipe your credit card, crossing a high utilisation ratio but paying it off responsibly, SBI may (or may not) give you more credit. This depends on your repayment history. 

• Limits on other credit cards: This applies when you own multiple credit cards from different banks. SBI consider the limits on your existing credit cards when setting a limit on your new one. For example, if your IDFC credit card has a ₹1,00,000 limit, getting a ₹2,00,000 limit on a new premium SBI card might not be possible. However, if you're an elite customer with another bank, securing a high limit on your SBI credit card possibly becomes easier.

In short, SBI assesses your financial habits to decide if you deserve a limit upgrade. But don’t worry if you don’t get an increased limit. With a few strategic steps, you can increase your SBI credit card limit with ease. Before that, it’s important to know what things influence an SBI card limit increase.

Factors Affecting Your SBI Credit Limit

Before you jump into how to increase SBI credit card limit, let’s understand the key factors influencing it:

• Income and employment type: If you have a well-paying and stable job, you are more likely to get a higher credit card limit. 
• Credit score (CIBIL): Once your score reaches above 750, you may become a favourable candidate for a credit limit increase by SBI card.
• Credit utilisation ratio: It’s recommended to use less than 30% of your existing credit limit, as it can positively impact your credit score due to your good financial discipline. And a good credit score indirectly boosts your chances of getting a higher credit limit.
• Payment history: If you consistently make timely payments, it can positively impact your increased limit eligibility.
• Relationship with SBI: If you’ve been a loyal SBI customer for a while, they might reward you with a higher limit.

Once you start managing these factors well, you can confidently say to the bank, “I want to increase my SBI credit card limit”, and you can actually get it. Moving ahead, understand what advantages there are for you in increasing your SBI credit limit.

Benefits of Increasing SBI Credit Card Limit

Here’s why you should increase your SBI credit card limit:

• Higher purchasing power: No more worrying about a decline transaction (like you faced while paying for your dost ki shaadi k liye suit). With a higher credit limit, you can buy more without putting immediate financial strain on your budget (utilising the free-interest window of your SBI credit card).
• Improved credit score: If you get a higher credit limit on your SBI card and maintain a good credit utilisation ratio, it can significantly boost your CIBIL score.
• Emergency cushion: A higher limit ensures you’re better prepared for unexpected expenses. 
• More rewards and offers: If you get a higher limit, you can spend more, and more spending will bring more reward points and exclusive benefits to add to your credit card account. 

With so many benefits, learning how to increase credit limit in SBI card is definitely worth the effort. It’s time now to get to the much-awaited question.

How to Increase SBI Credit Card Limit?

Now, let’s finally understand the answer to the golden question which you have been waiting for. Here are some ways to do it easily:

• Automatic increase: SBI periodically reviews eligible accounts for a credit limit increase. If you’ve been a good spender and payer, you might get an offer without even asking. Keep an eye on emails and messages from SBI.
• Request via net banking: You can request a credit limit increase by logging into your SBI’s net banking. Just go to the “Credit Card” section once you log in and check for the option related to increasing the credit limit of an SBI credit card. To make a request online, you probably have to submit the necessary documents, such as proof of income, to get approval for the increase.
• Call customer care: You can also call SBI’s customer care service and request a credit limit increase. Be ready with documents, such as latest salary slips for income verification, bank statements for analysing your account’s cashflow, etc.
• Visit the branch: If you prefer a face-to-face conversation to understand the procedure personally and then request a credit limit increase, you can visit your nearest SBI branch and discuss it with the concerned bank staff member.
• Pre-approved offers from the bank: Sometimes, SBI itself offers a pre-approved limit increase based on your repayment history and any other relatable factor. If there’s an offer like this with no hidden terms and conditions, you can accept the offer via SMS or email at your convenience. It’s simply the easiest way to increase credit limit SBI card.

So, as you’re now equipped with all the methods through which you can increase your SBI credit card limit, it’s equally important to know about all the commonly made mistakes when someone requests a credit limit increase.

Common Mistakes to Avoid While Requesting a Credit Limit Increase

To ensure a smooth process for your SBI credit card credit limit increase, avoid these pitfalls:

• Frequent requests: Don’t ask for a limit increase every month. Repeated requests can raise red flags, which will ultimately hurt your credit score. You can check and put in your request for a credit limit increase once every 6 months.
• Inaccurate income details: Always provide genuine and updated income proof for verification. Incorrect income or other documents can lead to the rejection of a credit limit increase request.
• High credit utilisation ratio: Make sure you don’t cross the current credit limit on your card, otherwise SBI might deny your credit limit increase request.

Avoiding these mistakes will increase your chances of turning your request for an SBI credit card limit increase into an approval.

Conclusion

Understand this clearly: increasing your SBI credit card limit isn’t just about spending more; it’s about enhancing your financial flexibility and improving your current credit score. By knowing how to increase SBI card limit and avoiding those common mistakes, you can easily enjoy greater purchasing power for your needs and wishes.

So, why wait? Whether you’re dealing with any sudden emergency, planning to buy any latest gadget, eyeing a lavish weekend trip, or simply want to improve your credit health, start working towards an SBI credit limit increase today.

Just remember, with great power comes great responsibility. Continue being a responsible credit cardholder. Spend your credit card limit carefully, and utilise the credit limit increase offer if applicable so that you can tackle any urgent expense. Be smart, spend wisely, and enjoy the perks of a higher limit. 

And if you’re looking to maximise your savings and rewards by getting a new credit card for yourself, at Finology Select you can find that “perfect” card that matches your spending habits and lifestyle. Because the right choice can make all the difference!

FAQs

How often can I request a credit limit increase in SBI?

Typically, SBI allows customers to request a credit limit increase once every 6 months. This is recommended not just for SBI but for almost every other bank. Moreover, if you frequently utilise a significant portion of your credit limit but always pay on time, SBI may (or may not) offer a limit enhancement, depending on your repayment history. It's best to wait at least 6 months between requests to improve your chances of approval.

Does increasing my credit limit affect my CIBIL score?

Yes, increasing your SBI credit card limit can positively impact your CIBIL score, but it depends on how you use it. A higher credit limit reduces your credit utilisation ratio, i.e. the credit percentage used against your total limit. 

For instance, if you spend ₹30,000 on a card with a ₹1,00,000 limit, your utilisation is 30%. And if your limit increases to ₹2,00,000, the utilisation then drops to 15%, which will enhance your score. However, if you overspend under the influence of having a higher limit, it could negatively impact your score.

Can SBI reject my request for a limit increase?

Yes, SBI can reject your credit limit increase request. Some common reasons for it include low credit score, inconsistent repayment history, high credit utilisation, or insufficient/incorrect income proof. Additionally, if you recently received a limit increase or applied too frequently, SBI might also reject your request on this basis. 

What should I do if my limit increase request is denied?

If SBI denies your credit limit increase request, don’t be disheartened. First, understand the reason for rejection by contacting SBI customer care. Next, work on the areas that need improvement, such as paying off existing balances, reducing credit utilisation, or improving your credit score. Wait for at least 6 months before re-requesting for a limit increase. And during this period, demonstrate responsible credit behaviour, as this will significantly improve your chances of getting approval for the next request.

Is there any fee for increasing my SBI credit card limit?

No, SBI generally does not charge any fee for processing credit limit increase requests. However, if you're upgrading to a premium card with a higher limit or additional rewards and benefits, there might be a one-time processing fee or a higher annual fee. It’s always a good idea to check with SBI customer care for any applicable charges before proceeding.

How much time does SBI take to increase my credit limit?

Once you submit your credit limit increase request along with the necessary documents (such as income proof or bank statements), SBI typically takes about 7 to 10 working days to process the request. However, if the bank offers a pre-approved limit increase offer, it may be implemented instantly after you accept it. In any case, you will receive a confirmation message from the bank once the limit increase is successfully processed.