What do you mean by Credit Card Limit ?

Credit Card Limit
Credit Card Limit

Of late, the popularity of credit cards has been increasing at a tremendous pace. An increasing number of Indians, especially millennials and youngsters, are warming up to the idea of having a credit card along with a bank account.

While credit cards allow you to make purchases now and pay at a later point in time, they’re not unlimited by any means. A credit card usually comes with a certain limit, beyond which you will be disallowed from using it until you pay off the outstanding balances. So, what exactly is the limit of credit cards? That’s exactly what we’re going to be looking at in this article. Let’s find out.

Why apply for a credit card?

Before we get to examine what the limit of credit card actually means, let’s first take a look at why individuals prefer to apply for a credit card.

The most compelling reason why people choose to apply for a credit card has to do with the financial freedom that it offers. As you’ve already seen above, a credit card allows you to purchase goods and services immediately without having to pay for them immediately. You can instead choose to pay at a later point in time. This can be extremely useful during situations where your present finances may not allow you to make any purchases immediately.

About Credit Card limits 

Now, coming to the limit of credit cards, banks that issue these financial instruments set a particular limit, beyond which the holder of the card will be disallowed from spending. For instance, if the credit card limit is Rs. 50,000, you will be prevented from spending more than this amount.

Banks usually set a limit to credit cards to prevent the cardholder from overspending beyond their capacity to repay. And this credit limit is not set arbitrarily too. There are plenty of factors that banks take into consideration while setting limits to credit cards. Here’s a quick look at a few of them.

  1. The income and age of the applicant
  2. The financial liabilities of the applicant
  3. The credit history of the applicant
  4. The credit score of the applicant

The higher the income and the better credit score and history of individuals are, the larger the limit of credit cards usually tend to be.

About Credit Card Customer Care 

If you have any doubts or queries regarding your credit card, the best way to get them answered or solved is by contacting the credit card customer care number. It is a dedicated helpline that you can call to get all of your questions answered.

The credit card customer care number varies from one bank to another. Therefore, make sure to call the number of your credit card service provider. If you’re unsure of what the number for your credit card provider is, all that you have to do is visit their website to find out.

Alternatively, you can also get in touch with the customer care of your credit card service provider through email as well. Again, you can find the email ID on their website.


Whether you possess a credit card already or are planning to get one in the future, always make sure to stay within the limit of your credit card. Exceeding the limit set by the bank can either result in heavy penalties or your card getting blocked.

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