Considering an Increase in My Credit Card Limit

Hello and Namaste Everyone,

I use only one credit card from HDFC Bank and it's been more than one year for me using this credit card. This is a nice card that I use because it offers some nice merchant offers. The annual charge is low and I am fine to pay that because ultimately I get better benefits than the annual fee. The credit limit it has provided me is also good for me because I have never used the entire limit. It clearly shows that whatever is assigned to me is good enough and now HDFC has offered me for credit limit increase.

I never had any issue with the card limit but it is good to have the higher limit because this will reduce the overall credit utilisation. The HDFC bank has offered me an increase in my credit limit and I got an email for this. They sent me an email and SMS to share this information and it can be revised with just one confirmation from my side. I have not yet confirmed the credit limit increase but somewhere I think that I should go for it. The minimum credit utilization ratio is good for a better CIBIL score in India. For those who don't know what is CIBIL score, I would like to mention here that it's a govt body that manages the credit score for everyone.

A higher credit score means we can get better credit offers from banks so it is imperative and recommended to maintain a credit history and this can improve the overall credit score. I don't know what is my credit score because I checked it a long back and at that time it was good but it keeps on changing. I know the fact that if the minimum ratio of credits utilization is followed then it also results in a better credit score and this is the reason why I am thinking of confirming this. Once I confirm with the bank they will increase my limit which will be effective in a few days.

Above is the email that I have received from the bank and there is a link in which I need to click and confirm. I don't know if this is the annual process followed by the bank because this is the first time I have gotten this type of email from the bank about the credit limit increase. I know that this is a process but not aware of the frequency and maybe there is no such frequency and it is just random. I'll be doing it later because I want to give it a thought if this is necessary and can help me use my credit card better. It can also help me have a better credit rating because I can improve my eligibility for better credit products. These credit products are loans, credit cards, and even overdrafts etc and this is where a better credit score can make a better impact. Do you also get such notifications from your credit card issuing bank?

Thank you so much
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