American Express India paused most credit limit increase requests after the Covid-19 outbreak and remained cautious for nearly a year. Previously, Amex had been generous with limit increases and is now taking a more conservative approach to manage risk in the post-pandemic environment.
From 18th January 2021, Amex resumed accepting credit limit enhancement requests. However, the process has changed: instead of getting an instant increase over the phone by simply stating an updated income, cardholders must now submit their updated financial documents by email for review.
How to Request an Increase in Credit Limit?
Amex customer chat confirms this updated process. After you submit the requested financials, the review typically takes up to around seven days to complete.
The Issue
A drawback of this method is that you won’t know the exact increase amount before you accept it. In some cases, the offered increase may be minimal — for example, a recent cardholder was offered an increase of just Rs. 1,000. Once the limit is adjusted, you generally must wait another six months before requesting an increase again.
Best Practices
Avoid requesting a limit increase if your card spending is low. Issuers typically consider both your recent spending patterns and your income tax return (ITR) when deciding a new credit limit. Ensuring steady and meaningful card usage alongside up-to-date income documentation improves your chances of a useful increase.
Final Thoughts
Requiring FY 2019-20 financials for review feels counterintuitive, since that period largely predates the pandemic’s full impact. Nonetheless, the new submission requirement may be intended to slow the volume of requests and limit the issuer’s exposure to risk. It’s notable that some banks, such as HDFC, continued to approve aggressive limit increases even during the pandemic.
Overall, this reinstated process is better than having no option at all. If you try an Amex limit increase under the new procedure, share your experience—individual outcomes will help others understand how these requests are being handled. I’ll update with my own experience in about a week.