While applying for a credit card, one of the important eligibility criteria is income level. Every credit card has a different bracket of income level specified based on the benefits and offers of the credit card. Hence, salary is a very important factor while credit limit is decided. 

An applicant with a higher salary will be eligible for a credit card with better features, discounts, and offers. However, salary is just one of the factors that decide the credit limit of an individual.

Can an applicant have a lower credit limit despite a higher salary?

Surprisingly, that is very much possible. As stated above, salary is just one of the factors in deciding your credit limit. Your credit score plays a bigger and more important role in deciding the credit limit. If you have a low credit score, how much your salary is, your credit limit is going to be low. A lower credit score with a higher salary means poor financial discipline on part of the applicant and hence the lender will not be comfortable setting a high credit limit. 

How can you make sure you get a higher credit limit with your existing salary?

  1. Use your salary well to pay bills/dues on time. Reminders help a lot to pay bills on time and hence maintain financial discipline and your credit score.
  2. Do not spend more than you can pay. Stay within your salary limits and assess your expenses regularly.
  3. Remember to update the bank of your salary raise. Make sure you let your bank know about your new salary which might make you eligible for a card with a higher credit limit.