October 21, 2024 · 16 mins read
Santosh Kumar
Having a credit card is almost a type of necessity nowadays as a credit card with a good limit can be really useful inin times of emergencies. Also, if you have good financial knowledge, then you can save a lot of money every year by using the card smartly. There are some basic criteria to be taken care of while applying for a credit card but the two most important factors which decide the type of card and its limit are a person's credit score and monthly income.
To have a good credit limit, you need to make sure that your credit score has been at par with the issuer bank's financial requirements and that your monthly income is up to the mark. Several other factors can be considered in case you want a high credit card limit for 30,000 Salary, which can be used to ensure that the card limit is not impacted a lot while issuing.
Before deciding on the credit card limit, you need to understand why it is important to have a high credit card limit at the beginning and also, the need to increase your existing card limit over time.
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You should always be on top of your finances every month if you are a salaried employee to ensure that you have a certain amount of funds ready for use in case of any emergency or an unexpected expense. There are certain instances where you might also need to spend some extra from your monthly budget if you have a family that is dependent on you. No amount of salary can promise the availability of such funds all the time. Hence, it is important to have a good limit on your credit card in case you require to use it when the time comes.
Keeping a good 2-3 lakh credit limit on your credit card is always advisable to be safe and prepared for any scenario, even while travelling outside the country. Here are some of the biggest reasons why your credit card should have a higher limit-
1. Higher funds availability- If the credit card has a higher limit, then the funds will be available to you 24*7 without any hassle. In any emergency, you can easily swipe your card to pay for the moment and worry about paying the bill later on.
2. Leading to a better credit score- A higher credit card limit directly indicates a higher credit score. If your credit score increases while using a card and paying on time monthly, your credit score also increases with time.
3. Better offers utilization- Nowadays, many credit card companies offer good discounts and Cashbacks on higher amounts of purchases for every customer. In case you have a card with a higher limit, you can easily avail of the discounts on every transaction without worrying about utilizing the card limit by month's end.
4. Helps in better financial planning- A higher credit limit can help you make all your monthly expenses through one card and help you easily manage your monthly budgets, as all your expenses will be mentioned in your monthly card statement.
5. It can be helpful to friends and family- If you have a higher credit limit, you can easily help out your dependents or your friends to use the card in case they require it to make a transaction, and that can help you to be available for them in the time of need.
By going through all these points, you might have a fair idea of why it is important to have a good amount of credit limit on your credit card and its uses. Now comes the question: what could be the credit card limit for 30,000 salaries?
The answer to that is a bit complicated as the salary is not the only factor that affects the credit card limit. Certain other factors contribute to the decision-making of the credit limit by the issuer
1. Credit score- a person's credit score is the biggest identifier of whether they would be able to handle a large credit limit.
2. Credit Utilization- If you have some existing loans or any debts that appear in your credit file, it will be difficult to get a higher credit limit on your card.
3. Payment history- Your payment history also shows the issuer whether you can make payments on time for the credit card every month or whether you have been a defaulter in the past.
4. Existing cards- If you already have existing credit cards with a bank, you can leverage that card limit to get a higher card limit from the new issuer, as they will be willing to offer you more perks in competition.
The bank considers all these factors before deciding to provide you with a suitable credit card limit for a 30,000 salary. Generally, a person with a 30,0000 salary usually gets a credit card with a limit of 50,000 to 1 lakh, depending on the credit score and other factors discussed above. Suppose you think that 50,000 is not enough amount for you and you require a higher amount of card limit for yourself. In that case, you need to ensure that you are managing all the other things in addition to your salary, as that usually takes time to increase yearly appraisals or promotions.
You should pay your complete credit card balance by your due date every month. The end result, you may ask, isn't just to avoid high interest rates; you also will increase your credit score. Lenders perceive paying your complete account every month as being responsible with money.
Missing a payment may have consequences to not only your credit score, but you may incur late fees as well. Set up reminders to pay your bills, or set up auto-pay, so your bills are paid on time. This can help protect your financial position.
You can stay aware of your spending habits, by regularly reviewing your credit card statements. Many banks now offer online programs and mobile device apps to track spending and to locate areas you'll be able to reduce your spending.
The credit use ratio is a substantial factor that impacts your credit score. Depending on your credit limit, strive to keep your use ratio under 30 percent, as this is a good indicator that you are using credit responsibly.
Having several credit cards has many perks, but it's important to use them wisely. If you apply for a number of cards within a short timeframe, your credit score may be adversely affected. If you need to get new cards, only get them when you know you will be able to handle them well.
Understand the costs of using your credit card as there will most likely be an annual fee, late fees, and international transaction fees to consider. Being aware of these costs could assist you in choosing cards that fit your spending habits and avoiding unexpected costs.
Many credit cards will include loyalty points, cash back, or rewards. Be careful and make sure you do not overspend to earn points, just use your credit card for purchases that qualify for cash back or rewards. Just be sure to always weigh the potential interest charged against the value of the rewards.
You can identify any discrepancies or unauthorised activity by regularly reviewing your own credit report and fixing problems quickly will ensure the reliability and accuracy of your credit profile.
Stay up to date with the newest tools and resources for financial education. Understanding the nuances of credit card use enables you to avoid common pitfalls and make good decisions.
Many credit card companies will not consider you for a credit limit increase unless you’ve had the card for at least three to six months (or even longer). If you’re wondering when is the best time to speak to your lender about an increase, take a look at our article on when to ask for a credit limit increase.
A low credit score signals that you’re too much of credit risk and are not currently worthy of more credit. But this can be fixed. Check out our tips on how to improve your credit score.
Late payments tell the credit card issuer that you are already having problems managing your existing credit.
If you only ever make the minimum repayments, your issuer might naturally assume that you cannot really afford a higher credit limit.
Issuers will often use your income to determine whether to increase your limit. If it’s too low, it’s unlikely that your limit will be increased.
This might be an indication that you are taking on too much credit or that you are in some kind of financial trouble that you are desperately trying to overcome using credit.
Some people might be tempted to overspend and therefore incur major debt when they have too much available credit. A higher credit limit will only increase this risk, and some lenders are simply not willing to take a chance by raising your limit.
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The credit limit can be increased from the initial offer a bank provides you if you negotiate with the team well in advance and for the existing customers, the bank does check all the factors every month to decide to give an increased limit to the customer.
Here are some of the ways to get a higher credit card limit for 30,000 salary-
1. Fixing the credit score- Every individual who has a pan card has a credit score kept by the credit authorities of India, such as Experian, CIBIL, etc. In order to avail any kind of loan, you need to make sure that your credit score is up to the mark to be able to get a higher amount of loan. A credit card limit is a kind of monthly card limit that the bank is ready to loan you interest-free until the next billing cycle. To ensure you can get a higher credit limit, you must keep your credit score in check. You can download your credit report by visiting the credit authorities' websites and entering your valid details. The credit report will be sent to you via email and you can check the score before applying for a card to get a good credit limit.
2. Decreasing credit Utilization- If you are a person who has taken a lot of small loans in your earlier years when you were new to finances, it is possible that your credit utilization is already at a high level, which will make it difficult for you to obtain a higher credit card limit. If you want to get a higher credit card limit for a 30,000 salary, you need to ensure that all your other loans are either completely paid or have nominal amounts left in them. These loans include home loans, car loans, personal loans, education loans, etc. If you can keep these loans under check and pay them off easily, then there is a high chance that you will get the required credit limit.
3. Having a clean payment history- If you have a clean payment history with all the loans, debts or mortgage payments on time, it will be easier to get a higher limit on your credit card. Suppose you are unable to make the whole payment of a large debt. In that case, it is always advised to get in touch with the debtor to come on some kind of a payment plan and assure them that you will be able to pay off the whole debt in small EMIs over the month; this will help you to keep a spotless payment history in your credit report.
4. Leveraging Existing cards- Every bank offers a different kind of card with certain features which are unique and useful in a certain manner. Many people try to keep more than one card at a time to use the privileges of both cards in certain areas whenever they require it. If a person has an existing credit card with a bank and has a good payment history without any misses, they can easily use it to extract a better offer from the new card issuer as even for the credit card limit of 30,000 salaries, you can easily get a limit upto 1 Lakh if your pre-existing card has a limit of about 75-80,000.
5. Opting for joint accounts- Many people make this mistake if they are unaware of the benefits of a joint account. If you and your spouse/dependent/parents are earning through business or a job, then you can opt for a joint account in a bank that can help you increase your credit card limit, as that will be considered a joint card for both individuals. You need to complete some formalities before you can get a joint credit card through a joint account, but this can help you get a higher credit card limit for 30,000 salaries.
6. Make sure to declare an increase in income- In case there is a promotion at your job or any yearly appraisals have helped you increase your salary by a good amount, you can easily get your credit card limit increased. All you need to do is get in touch with the card issuer and show them your salary slips for them to analyze and provide you with an increased card limit on your existing credit card.
There are many practical ways to get a higher credit card limit on 30,000 salaries, but the main thing is to be patient while taking the right steps towards having the desired credit limit. A credit limit only gets increased by either an increase in the overall credit score or an increase in salary. If you can make larger transactions every month and make their payments on time, the bank might offer you an increased credit limit automatically to help you secure more funds if required.
1- Can my credit card application be rejected if I ask for a higher credit limit?
No, your credit card application will not get rejected if you ask for a higher credit limit, as the bank will try to provide you with the best possible offer. If you provide any incorrect document or a forged proof of income, the bank might reject your application.
2- Does credit card limit also impact the other benefits of a credit card?
Yes, credit card limits also determine the type of facilities a card issuer can provide you as elite cards are not usually issued to the users with a lower salary.
3- Does an increased credit limit also increase the annual card fee?
It depends on the type of card you use. Some banks provide lifetime free cards, which do not charge you any fee in case of an increased limit, but if you have a fee-incurring card, the fee might increase after your credit limit increases after a certain point.
4- Can an increased credit limit be decreased if I do not use the card?
No, once a credit card limit is increased, it never decreases, but a bank can cancel your card in case you do not use it for a longer period; please get in touch with the issuer bank to have a clear idea about their rules regarding this.
5- Does getting an add-on card mean your credit limit has increased?
No, an add-on card has no impact on the credit limit; it simply means that two different cards can now use the same credit limit, but every transaction made on either of the cards will decrease the credit limit of both cards equally.
Yes, it's possible to get a high credit card limit with a ₹30,000 salary, but the actual limit will depend on various factors. Generally, banks consider your credit score, income, and other factors when determining a credit card limit.
For a ₹30,000 monthly salary, a credit card limit between ₹60,000 and ₹90,000 is generally considered standard. Some lenders may offer up to 3 times your income, which could be ₹90,000, while the minimum might be double your income, or ₹60,000. A limit above ₹90,000 would be considered a "high" limit.
Here are 5 effective tips through which you can increase your credit card limit with your current salary:
1: Timely Payment of Your Dues
2: Manage Credit Utilisation
3: Reduce Financial Obligations
4: Get a New Card
5: Reduce existing debt
Yes, If you are earning ₹30,000 a month, the credit card limit you may get will depend on various factors, including your income, credit score, and financial history.
Several banks offer credit cards with varying limits for individuals earning around ₹30,000 per month. Banks like HDFC Bank, Axis Bank, and SBI offer cards tailored for different income levels, with HDFC Bank's MoneyBack+ and Axis Bank's various credit cards potentially being suitable options.
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