Credit Card Limit Enhancement Letter – Sample Letter to Increase Credit Card Limit

Get all the details on how to get your bank to increase your credit card limit. This is a commentary on procedures that need to be followed, documents that need to be submitted and of course the most important, credit card limit enhancement letter. The present article provides a sample letter to increase credit card limit .

All banks set a credit limit on credit cards issued to customers. Banks consider multiple factors when setting credit limits. A customer's credit card limit is decided primarily based on existing policies adopted by the bank. However, a customer can always approach a bank and have these limits revised or enhanced. To do so a customer will need to make a formal letter to increase credit card limit.

Approvals for such request are solely at the discretion of the bank, but a nice, convincing cover letter can at times help push the case. Banks like the HDFC, ICICI, Axis and State Bank of India etcetera, have specific formats for forwarding credit card limit enhancement request. Application forms are available at all branches or can be downloaded from the bank's official website. In case a customer is unable to submit a request through the prescribed form a letter to the official heading the credit card division, citing the request, can also be made. Also, applications accompanied with such covering letters make a stronger case for consideration.

Most banks have a separate, central credit card division; hence the letter must be addressed to the head of the appropriate division. It can be routed through the Branch Manager of the branch the individual operates an account with.

Let us take a look at how best to write a letter to Increase Credit Card Limit :

Sample Credit Card Limit Enhancement Letter

The Manager
Credit card division
{Name of the Bank}
{Branch Name}
{Full address of branch}

{Your name as held in the bank records}
{Address in full}
Date: 00/00/0000

Subject: Request for increase in credit card limit

Dear Sir/Madam,
I am holding a savings bank account [mention account details here] in your branch since [mention month & year account was opened]. I also have a credit card linked to my savings account since [mention the length of time you have had the card], with a credit limit of [mention the limit here]. I, hereby request you to consider raising the credit limit on my card as there has been a quantum leap in my salary, since the issuance of the credit card/or in the last few months.

In consideration thereof, I certify that all credit card bills were repaid, by me, on time, and I have neither defaulted nor have outstanding debt. I realize that as the credit card provider your bank has authority to check my credit history, which I assure you will be in order. I understand that you have the authority to either approve or discard my application for an increase in credit card limit. I humbly request you to consider my application favourably.

Enclosed herewith are copies of the following, self-attested documents, for your perusal:

  • Payslips for the past 6 months
  • Bank statement for the past 6 months
  • IT returns

Thanking you
Yours sincerely
{Sign here and put your full name, as mentioned in the bank records below it, followed by the date}

Supporting documents to be submitted with the credit card limit enhancement application

The list may vary, but every bank requires certain documents as proof to justify the request for increase in credit card spending limit. A bank will agree to increase the limit provided it is satisfied with regards to your earning, spending and repaying capacity. Ideally, the earning should proportionally commensurate the increase in credit card spending limit request. And to this end banks require specific documents to complete the procedure. A general advice on documents needed is being provided here, however, it is recommended that the precise list of documents required for the action is sourced from the bank, complied with, before the application is forwarded.

  • Salaried individuals need to enclose salary statements of the past 3 months. A salary certificate issued by the employer is also acceptable.
  • Copy of the Income Tax Return or Form 16 for the previous year will also need to be submitted.
  • Self-employed individuals will require to submit a copy of their Income Tax Return.
  • Individuals drawing pension will also need to attach a copy of their IT Return.
  • Copy of bank transactions for the past 6 months (copy of passbook/bank account statement), so income and expenditure pattern can be established.
  • A self-attested copy of the PAN card may also be enclosed.

It is also important that you understand the nitty-gritty of things, before you apply for a raise in credit limit. To ensure that you find success in your attempt, follow the tips provided below:

How to get credit card limit increased

Before you approach the bank for an increase in credit card limit request you will need to ensure that your financial history complies with the bank's requirement. The chance of approval would be substantively higher for customers who meet the basic criterion.

Will your financial history get you a credit card limit increase – let's find out:

How prompt are you in repaying credit card bills?

The key to achieving positive results with your credit limit enhancement request is a good credit history. Ensure that you have not incurred late payment charges or fines on previous credit card bills. You need an exceptional credit card history, if you want your application to get you results.
If you have been slack in payments, then clear up your act. Ensure that you pay your credit card bills on time, for six months running, before making an application.

What's your credit utilization level?

Credit utilization indicates the amount of credit you take each month. Credit utilization also affects the credit history. For instance, individuals who regularly incur debt substantially lower than their credit limit have higher credit utilization level compared to someone who consistently utilizes the entire credit amount. Maintain a debt limit not more than 10% to 15% of the credit limit.

Follow the above recommendations and you will most definitely find your credit card limit raised. Continue to follow the tips provided, to help maintain a good credit history that can boost your chances of further enhancement of credit limit, at a later date.

More Sample Letter

  1. Sample letter to bank for new ATM card

  2. Sample letter to bank for expired ATM card

  3. Sample letter to bank for unblock ATM card

  4. Sample letter to bank for SMS service

Article by Juana
Juana is a freelance writer, with years of experience, creating content for varied online portals. She holds a degree in English Literature and has worked as a teacher and as a soft skill trainer. An avid reader, she writes on a variety of topics ranging from health, travel, education and personality development.

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Author: K Mohan22 Jan 2017 Member Level: Platinum   Points : 1

While I do appreciate the author for providing herewith the sample letter seeking to increase the credit card limit, what I have been experiencing of late that without any letter or request to them, the companies are rating our repayment performance and they are voluntarily committing further amount provided we accept the same. Such kind of messages and even phone calls are coming to me. That means for sincere customers sending a formal letter for enhancement may not be mandatory.

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