Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
The limit on your Kotak Mahindra Bank credit is the maximum balance that is available for you. The bank will determine your credit card limit and you can always request the bank to increase it in the future. If you use your credit card to make a transaction that is over the credit limit, you will have to pay an over-limit fee and this will negatively impact your credit score. It can also reduce the chance of you getting a loan for a financial emergency.
Your creditworthiness will be high if you have a high credit score. The way you use your credit limit affects your credit score. This is because every month, the credit limit and credit utilisation ratio are being reported by the bank to the credit bureaus. If your credit utilisation ratio is high, then, your credit score will be low.
Total credit limit vs Available credit limit
While the total credit limit is the maximum amount that can get on the card, the available credit limit is the amount that you have on the credit card for making purchases (as on a specified date). When you cross the total credit limit, you will be charged a penalty by the bank. The fee is called an over-limit fee.
The bank will determine the limit on your credit card based on a lot of factors:
| Income | Your liabilities |
| Your credit history | Your credit score |
| Your age | - |
The credit utilisation ratio (CUR) is the amount of the credit limit you have used. If the credit utilisation ratio is very high, then a lot of banks will think you are credit hungry. This will in turn affect your credit score. If you have a low credit utilisation ratio, it will show lenders that you know how to manage your finances. It lets them know that you can repay the amount that you borrow.
Yes, you can always decrease your credit card limit. You will need to submit documents as proof and the bank will process them as soon as possible. The bank can also decrease your credit card limit if you are not able to pay the credit card bills on time or if you cannot fund yourself.
No, the card limit will be decided by the bank. This will be different and be set after the bank looks into your expenditure, income, and factors like repayment history and credit score.
You should not have exceeded your credit card limit over the past years and should have also paid the entire credit card bill amount in full and on time.
Yes, the add-on cardholder will get the features and credit card limit as the primary cardholder.
The bank will keep notifying you regarding your application status. If Kotak Mahindra Bank rejects your request, then also the bank will send you an SMS.
The documents that you submit to the bank when you apply for an increase in credit limit needs to be self-attested.
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