How is a credit card limit decided?

A credit card limit is primarily decided by the issuer based on your income, credit score, and repayment history. Banks evaluate your debt-to-income ratio to ensure you can comfortably repay borrowed amounts. A higher credit score and stable income typically lead to a higher limit. Additionally, your existing credit card limits and overall credit utilization are considered. Issuers may also review and adjust this limit periodically based on your transaction behavior and financial standing.