HDFC Bank is one of the most popular banks in India. It offers variety of products by keeping in mind the needs and requirements of the customer. Amongst all the products offered by HDFC bank, credit card is the most popular one. HDFC credit cards offer various features that are designed by keeping in mind various needs of the customer. The popularity of HDFC credit card is proved by the fact that around 3 lakh new customers per month are opting for HDFC Credit cards and as per the official reports presented by times of India, HDFC Bank has hit the 1 crore mark of credit cards by the end of year 2017.
Why are HDFC Credit Cards so popular?
HDFC credit cards are very popular as compared to other banks for 3 main reasons:
- HDFC bank offers the best customer service
- HDFC Bank focuses on cross selling and internal customers rather than tapping on the new customers, and
- HDFC Bank offers credit cards that have unique features and are simple to understandWhen we talk about credit cards one thing that is very important is credit limit. Credit limit is closely associated with credit cards and a customer will always look for a higher credit limit while opting for credit card. Let us understand more about credit limit and about HDFC credit card limit in particular.
What is Credit Limit?
Credit Limit is the maximum spending limit given on credit cards. A credit card issuing bank or company sets a predefined limit on the credit card issued beyond which the card holder cannot spend money. This credit card limit is defined by the issuing bank by considering various factors of the client namely income, liabilities, spending profile of the customer, etc. The credit limit that is set on the credit card is usually defined in money. For example, if your credit card has a credit limit of ₹ 25,000 then you can spend and use only ₹ 25,000 and nothing beyond that value.
How does HDFC bank determine credit card limit?
HDFC Bank undertakes certain factors to determine the credit card limit of their customers. Following is a general procedure that is undertaken to determine HDFC credit card limit for a particular customer.
- When a customer applies for HDFC credit card, the bank asks for various documents.
- After collecting various required documents the banks does the scrutiny of the documents and collects all the details related to your income and liabilities. It collects salary slips and income tax returns to understand your income status and looks into bank details to understand your monthly liabilities and spending habits.
- Then HDFC bank looks into your credit profile, credit usage habits and its repayment history.
- Once all the information regarding your income and liabilities is collected, the HDFC bank depending on their bank’s credit policies terms and condition set the credit limit on your credit card.
- Credit limit is determined by first multiplying your gross income 2.5 or 3 times then subtracting from it the amount you require to satisfy your monthly needs and amount of EMIs. Then dividing the EMIs by gross monthly income which gives a debt burden ratio. Thus credit limit is a part of the debt burden ratio.
- Higher the EMIs lower is the credit limit and vice-versa.
Thus above is the procedure of HDFC bank for determining the credit limit for their credit cards.
Can HDFC credit card limit be changed at a later date?
Yes of course if you feel that your current credit limit is not sufficient then you can ask HDFC bank to increase your credit limit. You can increase your credit limit in two ways:
Automatic credit limit enhancement: As the name suggest the enhancement is done automatically from the bank. Banks often review the usage of your credit card account and if they are of the opinion that you are a trustworthy customer then the bank offers you credit limit enhancement by sending an SMS or you might receive a call from the bank asking the same. By replying to the SMS or call the bank shall process your request and increase the credit limit.
• Credit limit enhancement on request: Another way to increase the credit limit is when customer requests the bank for increasing the credit limit. In this process you have to call the bank and raise a request for increasing the credit limit. The difference between both the ways is that in automatic credit limit enhancement bank takes initiative to call their customer while in other case the customer has to call the bank and has to request for increase in the credit limit.
Thus if your credit history and repayment of dues is on time then your credit limit will be enhanced without any hassle. Kindly note revising your credit limit automatically or honoring your request of increase in credit limit is solely at bank’s discretion.
Which credit cards of HDFC bank should be opted?
HDFC offers variety of credit cards to its customers but following is a list of a few of the most popular HDFC Credit cards in various categories:
HDFC credit cards for beginners and Premium HDFC credit cards:
- HDFC Moneyback Credit Card
- JetPrivilege HDFC Bank World Credit Card
- HDFC Regalia Credit Card
- HDFC Diners Club Rewardz credit card
- HDFC Diners Club Premium Credit Card
Business Credit Cards:
- HDFC Business Platinum Credit Card
- HDFC Business Moneyback Credit Card
- HDFC Business Regalia Credit Card
Utra Premium Credit Cards:
- HDFC Infinia Credit Card
- HDFC Diners Club Black Credit Card
- JetPrivilege HDFC Diners Club Credit Card