In the world of e-commerce and digital payments, credit cards have become an indispensable tool for consumers. They offer convenience, security, and many benefits that can enhance the shopping experience. One such credit card that has gained significant popularity in India is the Flipkart Axis Bank Credit Card. A product of the collaboration between Flipkart, one of India’s leading e-commerce platforms, and Axis Bank, one of the country’s premier private sector banks, this credit card is tailored to offer maximum rewards and benefits for online shoppers.
This comprehensive guide will walk you through everything you need to know about the Flipkart Axis Bank Credit Card, focusing specifically on how to increase your credit limit and the numerous benefits that come with it. By the end of this guide, you’ll have a thorough understanding of how to maximize the utility of this credit card, making your shopping and financial experience even more rewarding.
Overview of Flipkart Axis Bank Credit Card?
The Flipkart Axis Bank Credit Card is a co-branded credit card offered by Axis Bank in partnership with Flipkart, one of India’s largest e-commerce platforms. This card is designed to enhance the shopping experience on Flipkart by providing lucrative rewards and benefits tailored to frequent shoppers. With features like cashback on purchases, exclusive discounts, and a range of other perks, the Flipkart Axis Bank Credit Card is a popular choice among consumers looking to maximize their savings.
Key Features
- 5% Unlimited Cashback: On Flipkart, Myntra, and 2GUD.
- 4% Cashback: On preferred partners like Swiggy, Uber, PVR, and Cure.fit.
- 1.5% Cashback: On all other spends.
- Welcome Benefits: Worth ₹3300, including Flipkart vouchers.
- No Cost EMI Options: On select products on Flipkart.
- Fuel Surcharge Waiver: 1% on fuel transactions.
- Low Annual Fee: Waived off on spending more than a specified amount annually.
Importance of Credit Limit
A credit limit is the maximum amount of credit that a financial institution extends to a cardholder. It plays a crucial role in determining how much you can spend using your credit card. A higher credit limit can be beneficial for several reasons:
- Increased Purchasing Power: Allows for larger purchases without worrying about maxing out your card.
- Better Credit Utilization Ratio: This helps maintain a low credit utilization ratio, which is good for your credit score.
- Emergency Funds: Provides a financial cushion in case of emergencies.
Understanding how to increase your credit limit and the benefits that come with it can help you make the most out of your Flipkart Axis Bank Credit Card.
Understanding Credit Limits
Definition of Credit Limit
A credit limit is the maximum amount of credit that a bank or financial institution grants to a cardholder. It is essentially the ceiling on how much you can borrow on your credit card at any given time. This limit is determined based on various factors, including your credit history, income, and overall financial health.
Factors Determining Credit Limit
Several factors influence the credit limit assigned to a cardholder, including:
- Credit Score: A high credit score indicates responsible credit behavior, leading to a higher credit limit.
- Income: Higher income levels typically justify a higher credit limit as it indicates the cardholder’s ability to repay.
- Credit History: A long and positive credit history with timely payments and low debt can result in a higher credit limit.
- Existing Debt: Lower existing debt levels can lead to a higher credit limit since it shows the cardholder’s capacity to manage more credit.
- Credit Utilization Ratio: Maintaining a low credit utilization ratio (total credit used vs. total credit available) can positively impact your credit limit.
Initial Credit Limit on Flipkart Axis Bank Credit Card
When you first receive your Flipkart Axis Bank Credit Card, the initial credit limit is determined by Axis Bank based on the factors mentioned above. This limit can vary from one cardholder to another. It’s important to understand your initial credit limit and how you can work towards increasing it over time.
Benefits of Flipkart Axis Bank Credit Card
The Flipkart Axis Bank Credit Card offers a plethora of benefits, making it a valuable addition to your wallet. Here’s a detailed look at the key benefits:
Cashback and Rewards
- Unlimited Cashback: Earn 5% unlimited cashback on Flipkart, Myntra, and 2GUD purchases.
- Partner Discounts: Get 4% cashback on preferred partners like Swiggy, Uber, PVR, and Curefit.
- Other Purchases: Enjoy 1.5% cashback on all other spends with no upper limit.
Discounts on Flipkart and Partner Merchants
- Exclusive Offers: Access exclusive discounts and offers on Flipkart, enhancing your shopping experience.
- Partner Merchants: Enjoy additional discounts and deals on various partner merchants, ranging from food delivery to entertainment.
Fuel Surcharge Waiver
- Fuel Benefits: Get a 1% fuel surcharge waiver across all fuel stations in India, making your fuel purchases more economical.
EMI Options
- Easy EMIs: Convert your high-value purchases into easy monthly installments, making it easier to manage your finances.
Airport Lounge Access
- Lounge Access: Enjoy complimentary access to select airport lounges, adding comfort and luxury to your travel experience.
Other Perks and Features
- Milestone Benefits: Earn milestone rewards for reaching specific spending targets.
- Card Protection: Avail complimentary lost card liability cover, providing financial security in case of card loss.
- Dining Offers: Benefit from exclusive dining offers at partner restaurants.
These benefits make the Flipkart Axis Bank Credit Card an attractive option for those who frequently shop on Flipkart and other partner merchants, offering substantial savings and perks.
Steps to Increase Your Flipkart Axis Bank Credit Card Limit
Increasing your credit limit can offer several advantages, such as improved credit score, higher purchasing power, and better financial flexibility. Here’s a step-by-step guide to help you understand and execute the process effectively.
Assessing Your Current Credit Limit
Before you begin the process of increasing your credit limit, it’s important to know your current limit. You can check this by:
- Reviewing Your Credit Card Statement: Your monthly statement will detail your current credit limit.
- Logging into Your Axis Bank Account: The bank’s online portal or mobile app provides this information under the credit card section.
- Customer Service: Calling Axis Bank’s customer service to inquire about your credit limit.
Understanding the Criteria for Credit Limit Increase
Axis Bank evaluates several factors before approving a credit limit increase:
- Credit Score: A higher credit score often leads to a higher credit limit.
- Income Level: Higher income can justify a higher credit limit.
- Payment History: Timely payments demonstrate creditworthiness.
- Credit Utilization Ratio: Lower utilization rates are favorable.
Steps to Increase Credit Limit
Step 1: Improve Your Credit Score
A good credit score is crucial for increasing your credit limit. Here’s how you can improve it:
- Timely Payments: Always pay your credit card bills on time.
- Reduce Outstanding Debt: Pay off any existing debts to lower your credit utilization.
- Check Credit Report: Regularly review your credit report for errors and get them rectified.
Step 2: Increase Your Income
Axis Bank may consider your income when evaluating a credit limit increase request. To improve this aspect:
- Submit Proof of Increased Income: Provide documents like salary slips, IT returns, or bank statements showing higher income.
- Add a Co-Applicant: If you have a spouse or family member with a higher income, consider adding them as a co-applicant.
Step 3: Demonstrate Responsible Credit Usage
Consistent and responsible use of your current credit limit can prove your ability to handle a higher limit. Ensure that:
- You Utilize Your Credit Wisely: Keep your credit utilization ratio low.
- Maintain Old Accounts: The length of your credit history matters, so keep old accounts open.
Step 4: Direct Request to Axis Bank
When you’re ready, request an increase in your credit limit:
- Online Request: Through the Axis Bank online portal or mobile app.
- Customer Service Call: Contact Axis Bank customer service and make a request.
- Written Request: Write a formal letter to Axis Bank requesting a credit limit increase, accompanied by necessary documents.
What to Do If Your Request Is Denied
If your request for a credit limit increase is denied, consider the following steps:
- Understand the Reason: Ask Axis Bank for the specific reason for denial.
- Improve the Relevant Factors: Work on the areas that led to the denial, such as improving your credit score or income level.
- Reapply After Some Time: Once you have made the necessary improvements, wait for a few months before reapplying.
Benefits of Increasing Your Flipkart Axis Bank Credit Card Limit
Enhanced Purchasing Power
A higher credit limit allows you to make larger purchases without worrying about maxing out your card.
Improved Credit Score
A higher credit limit can improve your credit score by lowering your credit utilization ratio, which is a key factor in credit score calculations.
Better Financial Flexibility
With a higher credit limit, you have more financial flexibility to handle emergencies or unexpected expenses.
Access to Better Rewards
Higher spending capabilities can lead to more cashback and rewards, maximizing the benefits of your Flipkart Axis Bank Credit Card.
Increased No Cost EMI Options
A higher credit limit means more flexibility to opt for no-cost EMI options on bigger purchases on Flipkart and other platforms.
Maximizing the Benefits of Your Flipkart Axis Bank Credit Card
Strategic Use of Cashback Offers
To get the most out of your Flipkart Axis Bank Credit Card, use it strategically to maximize cashback:
- Focus on Flipkart and Partners: Make most of your purchases on Flipkart, Myntra, and other partner platforms.
- Track Monthly Expenses: Keep an eye on your monthly spending to ensure you maximize the cashback benefits.
Utilizing Welcome Benefits
Make sure to take full advantage of the welcome benefits offered when you first get the card:
- Use Flipkart Vouchers: Use the vouchers on high-value purchases to get maximum benefit.
- Plan Initial Purchases: Make significant purchases early to benefit from the initial offers and cashback.
Leveraging No Cost EMI Options
When planning large purchases:
- Check Eligibility: Verify which products are eligible for no-cost EMI.
- Calculate Savings: Compare the total cost with and without EMI to ensure maximum savings.
Monitoring Your Transactions
Regularly monitor your transactions and cashback to ensure that:
- Cashback Is Credited: Check that your cashback is credited correctly.
- Fraudulent Transactions: Quickly identify and report any unauthorized transactions.
Flipkart Axis Bank Credit Card Limit Frequently Asked Questions (FAQs)
How Often Can I Request a Credit Limit Increase?
You can request a credit limit increase typically once every six months, but it’s advisable to wait until your financial situation has improved significantly.
Does Requesting a Credit Limit Increase Affect My Credit Score?
A request for a credit limit increase may result in a hard inquiry on your credit report, which can temporarily lower your credit score. However, a higher credit limit can improve your score in the long run by lowering your credit utilization ratio.
What Should I Do If I Cannot Make My Payments on Time?
If you’re unable to make your credit card payments on time, contact Axis Bank immediately to discuss possible options like restructuring your payments or converting your outstanding amount into EMIs.
Can I Decrease My Credit Limit?
Yes, you can request a decrease in your credit limit if you feel that it’s too high. This can be done through the Axis Bank online portal or by contacting customer service.
Are There Any Fees Associated with Increasing My Credit Limit?
There are generally no fees associated with requesting a credit limit increase. However, it’s best to confirm this with Axis Bank at the time of your request.
Conclusion
The Flipkart Axis Bank Credit Card offers a plethora of benefits, especially for those who frequently shop online. By understanding how to increase your credit limit and strategically utilizing the benefits, you can enhance your financial flexibility, improve your credit score, and maximize your rewards. Whether it’s through timely payments, increasing your income, or responsible credit usage, there are several steps you can take to ensure that you get the most out of your Flipkart Axis Bank Credit Card. This comprehensive guide provides you with all the information you need to navigate the process and make informed decisions about your credit card usage.
Increasing your credit limit is not just about having more money to spend; it’s about better financial management and maximizing the benefits available to you. With careful planning and strategic use, the Flipkart Axis Bank Credit Card can be a powerful tool in your financial arsenal.