ICICI Credit Card Limit

Financial institutions including banks apply different methodologies while deciding the card limit for each applicant. However, there are some common parameters that are taken into consideration while deciding the maximum limit permissible on a credit card, which include:

• Credit History of applicant

This is the foremost element that any credit card issuer considers while reviewing a credit card application and credit limit. Credit history is a record of the applicant’s loans and other debts including the repayment schedule.

Applicants with clean past records and timely payment history for their earlier debts are preferred by banks/financial institutions. A good credit history translates into high credit score. Such applicants have a greater probability of getting a higher credit limit. For those with a lower credit score are often offered low credit limit on their credit card as the bank/credit lender remains skeptical about their ability to repay the loan.

Lastly, having NO credit history may also become a hurdle in some cases. As in such scenarios, the lender has no past record to rely on and to ascertain the repayment ability of the applicant.

• Income and other debts

The bank or the credit lender will analyse the applicant’s income sources along with existing debts or financial obligations. The card issuer usually determines the card limit by applying a multiplier on the gross income of the applicant.

Another way to determine credit limit is to calculate the debt-burden ratio. This is the sum of all financial obligations (EMIs) divided by the monthly income. The credit limit is usually proportionate to this ratio.

• Co-Branded or Merchant based cards

A lot of credit cards are offered to customers on the basis of activities like frequent travel with a particular airline, shopping at designated partner shops, etc. In these cases, the credit limit may be determined on the basis of the total amount spent by the customer on these activities.

• Type of Credit Card

Banks offer different type of credit cards to meet the varying needs of their customers. For instance, ICICI Bank offers various gemstone cards such as Coral, Sapphiro and Rubyx. So cards which offer more exclusive or elite privileges are usually accompanied with higher credit limit. Basic credit cards for day-to-day expenses may have lower credit limit.

• Time Period

Many times banks also consider the time period for which the customer has been associated with the bank. If a patron has been a loyal customer for a long duration, then the bank may reward him or her with a higher credit limit.

There are no restrictions on the number of times the credit limit can be changed. However, there are only two ways through which a customer can increase ICICI credit card limit assigned to him.

1. Bank Initiated

ICICI Bank allows its customers to apply for a review of the initial credit (or cash limit) allotted post completion of a year (12 Months) of holding the credit card. Some of the important points to note are:

• This facility is available to select cardholders. The customers eligible for the credit card limit review are notified by the bank through official communication.
• Customers who receive such communication (message or mail) should contact the customer care helpdesk or their nearest branch for the subsequent steps. They can also respond back to the SMS sent by the bank. In that case, the customer care team will reach out to the card holder for the next steps.
• If the customer receives SMS notification regarding the credit limit review, they can check it in their Internet banking account through website or app and then apply for credit card limit increase through the same.
• The bank reviews such requests on a case-to-case basis and takes the decision. The bank only affects an increase in the credit limit post receiving full consent from the concerned card holder.
• The review will be done at the complete discretion of the Bank. It also reserves the right to modify or discontinue this feature without providing any information beforehand.

2. Customer Initiated

• A customer can also reach out to the customer care team to know about his or her eligibility for ICICI credit card limit increase. The card holder will need to authenticate him or her by providing details such as Credit Card number, date of birth, etc. However, you should never share your CVV and PIN with anyone, even if it is a customer support executive.