Customers with ICICI Bank have the opportunity to choose the credit card which they like the best from a ton of options. With this choice being this diverse, the demands and eligibility criteria for every credit card also vary from each other. However, the bank has the sole right to decide what is the maximum credit limit they will extend to the user.
Credit limit refers to the maximum credit limit that the bank extends to the cardholder. Exceeding this limit can incur an over-limit fee. The permitted limit of the card is what the users can use to make purchases.
### Types of Credit Card Limit –
There are different types of limits applied by the bank on your credit card which are as follows –
Total Credit Card Limit –
The total credit limit on your credit card is the maximum amount you can borrow from the bank. In simpler terms, the maximum amount which can be debited from your credit card is your total credit limit. This credit limit is your total, and if you have already used 50% of the limit, you will be left with the remaining 50% unless you clear the payments.
Available Credit Card Limit –
The available credit card limit represents the amount that is remaining on the card after spending a part of the total credit limit. This standing amount is the spare money that you are left with. If you clear your outstanding bills in full, your credit card limit will renew and return to being equal to the total credit limit.
Credit card cash limit –
Cash limit refers to the amount of cash that can be withdrawn with the help of a credit card through an ATM. This limit is usually 20% to 40% of your total credit limit depending upon the card you own. This cash limit can come in handy in emergencies where card payments do not work.
Apart from these credit card limits, you can set your own ICICI credit card limit for every day through the application or via net banking. This feature allows you to put a max cap on the amount you can borrow from the bank.
Factors affecting the credit limit –
The ICICI Bank reviews the credit card account to determine whether the cards are eligible for credit limit increase or decrease. You can request a credit limit raise, but you will have to be eligible. Here are a few factors which determine your credit card limit –
Type of card –
The type of credit card you have or wish to have. Depending on your needs whichever card is the best suited for you, can choose it. There are many cards in the market whose credit limit has a lot of differences. The credit limit of a basic credit can be lower as compared to super-premium credit cards so you can choose the credit card which suits your requirements.
Income Level –
Your income is the major factor in deciding whether you are eligible to apply for the card you have chosen for yourself. The higher your income is, the better your credit limit will be.
Credit History –
Credit history is important when the bank receives the application and tries to check on the details about the credits you have taken. If you have a decent credit history i.e., you have been regular and responsible in making the payments, your chances are high to get a good credit limit. However, it can be exactly the opposite as well, a bad credit history means a low credit limit or even rejection.
The credit limit is solely determined by the bank depending upon the details of the users. The bank decides the “creditworthiness” of a user by the credit history and credit score. This also helps the user to build a trust factor. The credit limit can be different for people holding the same cards as well, highly depending upon the factors which affect the decision of the bank.
