Standard Chartered Bank provides a straightforward process for requesting a credit limit increase:

  • Log in to Online Banking: Access the Standard Chartered Bank Online Banking portal.
  • Select 'Help and Services': Navigate to the 'Help and Services' section.
  • Choose 'Card Management': Find the option for 'Card Management' within the menu.
  • Select 'Credit Limit Increase': Locate and click on 'Credit Limit Increase.'
  • Follow On-Screen Instructions: The system will guide you through the process, allowing you to submit your request for a credit limit increase.

Total credit limit vs. available credit limit

It's crucial to differentiate between your total credit limit and your available credit limit:

Total Credit Limit: This is the maximum amount you can charge to your credit card. It's the absolute ceiling determined by the bank and this is the limit that you might want to request for an upgrade.

Available Credit Limit: This represents the amount of credit you have at your disposal for making purchases on your card, typically as of a specific date. It takes into account your outstanding balance and available credit.

How is your credit limit determined?

Standard Chartered Bank calculates the credit limit by taking various factors into account:

Credit History: Your past financial behaviour, including your credit usage and repayment pattern, significantly influences your creditworthiness. Payments on time and in full and responsible credit management contribute to a positive credit history.

Income: Your income level plays a pivotal role in determining your credit limit. A higher income often translates to a higher credit limit, as it indicates a greater capacity to manage credit.

Liabilities: Existing financial commitments, such as outstanding debts, loans, and EMIs, can impact your credit limit. High levels of debt may reduce your available credit limit.

Age: Your age can be a factor, though not the primary one, in determining your credit limit. Generally, older individuals may have higher credit limits due to their longer financial track record.

Credit Score: A good credit score is like a confirmed ticket to a higher credit limit and it reflects your ability to manage credit responsibly.

Credit Utilization Ratio 

The credit utilization ratio is a significant metric that demonstrates how much of your credit limit you've used. Maintaining a low credit utilization ratio indicates responsible credit management and can positively impact your credit score. Conversely, a high ratio may signal excessive credit usage, potentially affecting your creditworthiness. So it is always helpful to have a higher credit limit.

Consequences of crossing the credit limit

Using your credit card for transactions beyond your credit limit can have repercussions:

  • Over-Limit Fees: You may incur over-limit fees when you surpass your credit limit, leading to increased financial burdens.
  • Negative Impact on Credit Score: Such transactions can harm your credit score, making it harder to secure loans during financial emergencies.