How to Increase Credit Card Limit in UAE?

An Overview of Credit Card Limit in UAE

Your credit card limit is the maximum amount that you can spend with your card(s). Banks decide this limit based on your income, credit Score, repayment record, existing liabilities, and other factors. 

The important point to remember is that your score, income, and other aspects may change over time. If you need a higher limit, you can certainly request your bank to upgrade credit card limit. In some cases, banks themselves may give you the option for the increase. 

How to Increase Credit Card Limit in UAE?

Banks in the UAE offer several ways to request a limit enhancement when you want to increase CC limit. Let’s understand the major options for the same — 

1. Online or Mobile Banking: Many banks let you increase credit card limits through their digital channels. In this case, you can log into your account and go to the dashboard or ‘cards’ section. Find the option to raise the limit and apply.
   A key benefit of this method is that you can easily make a request and track it without any hassle.
2. Bank Branch: You can also head to your nearest bank branch to extend credit card limit. Bring your application along with documents such as income statements or a salary certificate. You can then connect with bank personnel and submit the request in person.
3. Customer Service: Certain banks may take phone banking requests. With this facility, you can find more details about increasing your card’s limit and get all your queries resolved. 
4. Automatic Review: Banks often roll out upgrade offers — you can simply accept the same to have your card limit increased. This is usually done for those with good incomes, timely repayments, and more. This is ideal for those wondering how to increase credit card limit without applying manually.

How to Improve the Chances of Increasing the Credit Limit on Credit Card?

The key idea is pretty straightforward. Improve your financial profile and show yourself as a responsible borrower to raise credit card limit easily. Here are some concrete steps on how to do the same — 

Keep a High Credit Score

A good credit score shows that you’re responsible with debts, whether for cards or loans. This can also make it easier to get a higher limit on your card. Try to maintain a score of 700 or more. For this, you can pay bills on time, avoid multiple applications, and keep debt under control. 

Keep Your Credit Utilisation Low

Keeping your debt utilisation low is another easy way to upgrade credit card limit. If you use only around 20% to 30% of your total limit, you present a responsible financial record to the bank. It also shows that you can be trusted with a higher limit. 

Provide Updated Income Proof

Submit your latest salary certificate or bank statements if your income has increased. A higher income strengthens your eligibility for a limit upgrade.

Build a Clean Repayment Record

Avoid late payments and try to pay more than the minimum amount due. A clean track record greatly boosts your chances of increasing the credit limit on credit cards.

Reduce Existing Liabilities

Lower your debt-to-income ratio to improve your chances of getting a limit increase. You can clear loans, reduce EMIs, and settle card debts in total. This improves your overall financial standing.

Apply for a New Card or Upgrade to a Higher-Tier Card

Premium cards usually offer higher limits. If eligible, upgrading to Platinum, Signature, or Infinite can instantly increase credit card limit. 

If you’re not eligible for a premium card, you can also apply for a new one. In this case, your total credit limit can increase. 

Maintain a Strong Relationship with Your Bank

Keeping multiple accounts or products with the same bank builds trust. Long-term users often receive quicker approvals. This can work well for you if you wish to increase CC limit.

Does Credit Card Limit Increase Impact Your Credit Score in UAE? 

Having understood how to extend credit card limit, let’s see its impact on your credit score.

Generally, card limit increases have a mixed impact on your score. 

✅Lower credit utilisation ratio: If your spends stay the same, a higher limit means lower utilisation ratio. Let’s understand it through an example
Let’s say you had a card with AED 10,000 limit and a spend of AED 5,000. In this case, your utilisation would be (5,000/10,000) x 100 = 50%. However, if your card limit becomes AED 15,000 and the spend remains the same, the utilisation ratio is now (5,000/15,000) x 100 = 33.3%

❌Hard inquiry: When you make a request to raise credit card limit, some banks may make a hard inquiry. This is especially true if you apply for a new card for a higher total limit. This type of inquiry, however, can decrease your score temporarily 

❌Risk of overspending: Let’s be honest — while we’d love to keep our finances in check, an increase in card limit can make it quite tempting to spend more. If done incorrectly, this can bring down your score.

Let’s continue the example above of AED 5,000 spends and AED 10,000 limit. 

Suppose the bank decides to upgrade credit card limit to AED 15,000. You also think, “why not make a spend of AED 5,000 more!” But here’s what happens in this case —

• Outstanding amount — AED 10,000
• Credit limit — AED 15,000
• Utilisation — (10,000/15,000) x 100 = 66.6%

In this case, your utilisation ratio doubled! This can decrease your score.

Bottom Line: If you keep your card usage in check, your score can actually increase over time. However, if you also upgrade your spends with the increased limit, it can negatively impact your score. 

FAQs About Increase Credit Card Limit