Can you please clarify what is credit card limit in India?
I think it is very easy to understand what is a credit card limit. It is the maximum amount of money that your bank or card issuer allows you to borrow on your credit card. Credit card limit is a spending ceiling for you to purchases, pay bills or withdraw cash up to a certain limit only. Your credit card limit is based on your income, credit score, repayment history and your current debts.
It is important to have credit card limits to:
- Control spending
- Improve credit score
- Better chances of loan approval
Knowing your credit limit helps you plan big purchases, avoid declined transactions and maintain a good credit profile.