Having a higher credit limit on your ICICI credit card can be beneficial in many ways. It allows you to make larger purchases more conveniently, helps improve your credit utilization ratio, and gives you extra purchasing power in case of emergencies. However, credit limit increases are not automatic – you need to proactively request an increase from ICICI Bank.
In this comprehensive guide, we will cover everything you need to know about increasing your ICICI credit card limit, including:
- Factors that determine your credit card limit
- How credit utilization ratio affects your credit score
- Ways to request a higher limit from ICICI
- Tips to get a credit limit increase approved
- Pros and cons of increasing your credit limit
- Alternatives if a request get rejected
Let’s get right into it!
What Factors Determine Your ICICI Credit Card Limit?
When you apply for an ICICI credit card, the bank will assess your profile and assign you an initial limit based on:
Your income – Higher earners typically get higher limits. ICICI will want to see that you have sufficient monthly cash flow to service the credit limit.
Credit score – Your CIBIL or credit bureau score is a key factor. 700+ scores have the best approval odds. Those below 650 may get rejected.
Existing obligations – Too much existing debt can impact your debt-to-income ratio and lower your chances.
Relationship with ICICI – Existing customers in good standing often get higher limits. New applicants may get lower limits initially.
Your credit history – A long positive history of managing credit indicates you can handle more.
Type of credit card – Premium cards have higher limits. Entry-level cards will have lower limits.
Keep these parameters in mind as you try to increase your credit card limit. Take steps to strengthen your credit profile if needed.
How Does Credit Utilization Affect Your Credit Score?
Before requesting an increased credit card limit, it’s important to understand the impact of credit utilization ratio on your credit score.
What is credit utilization ratio?
Your credit utilization ratio is the percentage of your total available credit that you are currently using.
For example, if your total credit limit across all cards is ₹5 lakhs and your current outstanding balance is ₹1 lakh, your credit utilization is 20% (1 lakh/5 lakhs).
How does it impact your credit score?
Experts recommend keeping your utilization under 30%. A higher ratio indicates risk and lowers your score. A lower ratio improves your score.
That’s because a high utilization means you are more “maxed out” and have less spare credit available. Maintaining a lower utilization shows lenders you can handle more credit.
How can increasing your limit help?
When your credit limit goes up, your utilization percentage will automatically come down if your spending remains the same. This can boost your credit score over time.
Just make sure you don’t spend unnecessarily simply because you have a higher limit! The goal is to use your improved ratio to build an even stronger credit profile.
Ways to Request a Higher Credit Card Limit from ICICI
Ready to enjoy the benefits of a higher limit? Here are some easy ways to request an increase from ICICI:
1. Apply Online
The simplest way is to directly submit a request online via ICICI’s website or their iMobile app:
Website – Login to your account, go to Credit Card section, click Manage Limit and enter desired limit
iMobile App – Go to Cards section, choose your card, click Manage Limit, enter desired limit
This will give you an instant decision with no paperwork. However, the increase may be incremental vs. a large jump in limit.
2. Call the Customer Care Number
Speaking to a customer service representative allows you to explain your need for a higher limit and request a specific amount.
Have your account details handy and call toll-free:
From India – 18001038181
From USA/Canada – 18666850128
Based on your profile, the agent can manually review and approve a generous hike to your existing credit limit.
3. Submit a Written Request
Draft a formal request letter highlighting your:
- Card number & existing limit
- Desired new credit limit
- Duration you’ve held the card
- On-time payment history
- Annual income details
- Rationale for needing a higher limit
Attach supporting documents like income proof and recent bank statements. Mail the letter to your nearest ICICI branch for consideration.
This is the most comprehensive but time-consuming approach. Make your case persuasively and provide ample documentation.
4. Visit Your Nearest Branch
For a face-to-face discussion, visit an ICICI branch with:
- Completed credit limit increase application form
- Recent bank statements
- Income documents
- Any other data to support your request
The branch staff can submit your application after reviewing your eligibility. This option gives you an opportunity to explain your needs directly but may require multiple visits.
Tips to Get Your Credit Limit Increase Approved
Here are some useful tips to improve your chances of ICICI approving your request for a higher credit limit:
Keep card usage low – Having minimal outstanding balances shows you handle credit wisely.
Make payments on time – A long track record of paying bills on or before the due date makes you look reliable.
Avoid applying for new credit – New applications can temporarily impact your score so avoid them before requesting an increase.
Wait at least 6 months – Issuers prefer you wait 6-12 months before asking for more credit.
Start small – If your first increase gets rejected, try again after a few months with a smaller limit request.
Escalate politely – If denied, you can call, visit a branch, or write to senior management explaining your need. Remain professional.
Improve your credit score – Take steps like paying down debts or reviewing your credit report to boost your score. A 750+ score improves approval odds.
With some discipline and persistence, you can get ICICI to approve your request for a higher limit.
Pros of Increasing Your ICICI Credit Card Limit
Higher credit limits come with many potential benefits including:
1. Better Credit Utilization Ratio
As explained earlier, maxing out your limit hurts your credit score while maintaining a lower utilization helps. A higher limit lets you use the same amount each month but appear less “maxed out”.
2. Increased Purchasing Power
Need to make a big-ticket purchase? A higher limit gives you the power to do so without needing multiple cards or having payments declined.
3. Extra Buffering for Emergencies
Having unused spare credit provides a buffer in case of unforeseen expenses like medical bills or car repairs. You avoid the need to take out short-term loans.
4. Easier Large Payments
Whether it is school fees, insurance premiums, or vacation bookings, a higher limit lets you conveniently make large payments that may exceed your current limit.
5. Flexibility in Financial Planning
More available credit gives you greater flexibility in planning investments or other financial goals. You can leverage your higher limit wisely when lucrative opportunities arise.
6. Chance to Qualify for Premium Cards
A higher credit limit expands your eligibility for more exclusive, premium credit cards with superior rewards programs and perks.
As long as you use the increased limit wisely and make timely repayments, the benefits are well worth it.
Potential Cons of Increasing Your Credit Limit
However, it is also important to be aware of the potential downsides:
1. Risk of Overspending
With a higher limit, it becomes tempting to spend more than you should. Guard against splurging on unnecessary items simply because you have extra credit.
2. Hitting the Limit Can Still Hurt Your Score
While the utilization ratio improves, maxing out your card – even a higher limit – can negatively impact your credit score.
3. Multiple Increases May Be Viewed Negatively
Frequently requesting higher limits in a short span may be seen as credit hungry behavior by some issuers. Space out your increase requests.
4. It Can Increase Your Debt Burden
If used irresponsibly, a higher limit can potentially increase your overall debt obligations. Avoid borrowing more than you can repay.
5. Chance of Rejection
There is always the possibility that ICICI may reject your request based on your profile. Too many rejections can negatively impact your credit score.
Monitor your spending carefully and have a repayment plan to avoid these pitfalls. The higher limit facility is best used judiciously.
What if Your Credit Limit Increase Request Gets Rejected?
If ICICI Bank declines your request for a higher limit, don’t lose heart. Here are some options:
Ask why it was rejected – Understanding the reason helps plan your next steps.