Kotak Mahindra Bank Credit Card Limit

The Credit Limit set on your Kotak Mahindra Credit card is decided upon by taking few things into consideration. Some of the important criteria are:

Credit History of the Cardholder: This is of prime importance while setting the credit limit on a card. The bank checks upon the Credit Score of the applicant and his past banking experience to analyse the credibility. The absence of any history may hamper the bank’s decision as they will have no information about the financial health of the applicant

Income and Liability: The income of the applicant has a substantial role to play while determining the credit limit for a card. A high income serves as a guarantee for debt repayments. The bank also considers the existing debts and the repayment pattern of the applicant.

Other Credit Limit: The Bank also take into account the credit limit customers have on other credit cards. If the limit on the other cards is better than the bank might not have any problem in increasing the credit limit.

Kotak Mahindra Bank Credit Card limit is increased automatically. The bank reviews the user’s spending patterns regularly. Cardholders who have not defaulted on any payments and have maintained a good credit utilization ratio will get an offer from the bank itself.

Users can still call the customer care centre to make a request to enhance the credit limit.

How much of my Credit Limit should I use to maintain a good Credit Score?
The Credit Score of an individual is the cumulative result of all the cards used by the person. However, to maintain an ideal Credit Score you should try to limit credit card usage to below 30% of your credit limit.

How long does it take to process a Credit Limit increase request?
The Bank generally responds immediately on all matters related to Credit Cards. However, customers must give it a few days for the changes to reflect.

How can I improve my Credit Score?
On time payments of Credit Card bills improve your credit score and it also marks you as a dependable and trustworthy borrower in the eyes of the Bank. Also try to limit your credit card usage to 30% of the credit limit.

Is there a possibility of an increase in the credit card limit automatically?
Yes, the Bank reviews the customer profiles from time to time and offers credit limit increase to deserving cardholders. But this is subject to many other considerations and there are no set parameters for this.

Is it advisable to accept a credit limit increase offered by the Bank?
Accepting an increase is good only if you act responsibly and do not indulge in overspending. A higher limit will bring down your credit utilization ratio and will reflect positively on your credit score.