Have you ever wanted to buy something on Amazon.in but realized that you don’t have enough money in your account? Or maybe you have a credit card but don’t want to pay the high interest rates or fees? If so, you might have heard of Amazon Pay Later, a feature that lets you shop now and pay later with instant credit.

But what if you want to buy something more expensive than your credit limit allows? Is there a way to increase your credit limit of Amazon Pay Later? The answer is yes, and we will show you how in this article.

What is Amazon Pay Later?

Amazon Pay Later is a feature that allows you to buy products on Amazon.in and pay for them later in easy monthly installments (EMIs) or in a single payment next month. It is a convenient and hassle-free way to get instant credit without any credit card details or processing fees. You can use Amazon Pay Later for purchases ranging from ₹0 to ₹60,000, depending on your eligibility and credit limit.

How Amazon Decides Your Credit Limit

According to Amazon, your credit limit is determined by various factors, such as your credit history, income, spending habits, and other information available with Amazon and your credit bureau. Amazon also partners with third-party lending partners, such as axio or IDFC FIRST Bank, who may also check your eligibility and creditworthiness before approving your credit limit.

So, if you want to increase your credit limit on Amazon Pay Later, you need to improve your credit profile and show Amazon and its lending partners that you are a responsible and reliable borrower.

Tips to Increase Your Amazon Pay Later Credit Limit

Here are some tips that can help you increase your credit limit of Amazon Pay Later:

#Tip 1: Pay your bills on time

One of the most important factors that affect your credit limit is your payment history. If you pay your Amazon Pay Later bills on time and in full every month, you will demonstrate your repayment ability and build a good credit score. This will increase your chances of getting a higher credit limit on your Amazon Pay Later.

#Tip 2: Use only a portion of your credit limit

Another factor that affects your credit limit is your credit utilization ratio, which is the percentage of your available credit that you use. For example, if your credit limit is ₹10,000 and you use ₹5,000, your credit utilization ratio is 50%. Ideally, you should keep your credit utilization ratio below 30%, as this shows that you are not dependent on credit and can manage your finances well. If you use too much of your credit limit, it may indicate that you are overburdened with debt and may have difficulty paying it back.

#Tip 3: Update your income with Amazon

Your income is another factor that influences your credit limit, as it reflects your ability to repay your debt. If your income has increased since you applied for Amazon Pay Later, you should update it with Amazon. This may help you get a higher credit limit based on your current income level.

#Tip 4: Request a credit limit increase

 If you have been using Amazon Pay Later for at least six months and have a good payment history and low credit utilization ratio, you may be eligible to request a credit limit increase. You can do this by going to Your Account > Manage Amazon Pay Later > Request Limit Increase. If this option is not visible to you then you can call Amazon customer Care and request them for a credit increase. You will have to provide some information, such as your PAN card number, address proof, and income proof, and submit your request. Amazon will review your request and inform you of the decision within a few days.

Also Read: How To Increase Flipkart Pay Later Credit Limit?

#Tip 5: Wait for an automatic credit limit increase

Sometimes, Amazon may increase your credit limit automatically without you requesting it. This may happen if Amazon notices that you have been using Amazon Pay Later regularly and responsibly for a long time. You will receive an email or SMS notification from Amazon if this happens.

Want To get more credit limits to shop Online? Signup for Flipkart Pay Later

Benefits of increasing your credit limit

By increasing your credit limit of Amazon Pay Later, you can enjoy the following benefits:

• Buy more products: With a higher credit limit, you can buy more products on Amazon.in without worrying about running out of funds. You can also buy more expensive products that may not fit in your current credit limit.
• Save on interest: With a higher credit limit, you can choose longer EMI plans that may have lower interest rates than shorter ones. This way, you can save on interest costs and pay less overall.
• Improve your credit score: With a higher credit limit, you can lower your credit utilization ratio and improve your payment history. This can boost your credit score and make you eligible for better offers from other lenders in the future.

Drawbacks of a Higher Credit Limit

Getting a higher credit limit on your credit card may sound like a good idea. After all, who doesn’t want more spending power and flexibility? But before you hit that request button, you should be aware of the potential pitfalls that come with a higher credit limit. Here are some of the cons of asking for a higher credit limit that you should consider:

• You may end up spending more than you can afford: A higher credit limit can be a double-edged sword. On one hand, it can help you in case of emergencies or big purchases. On the other hand, it can also tempt you to splurge on things you don’t really need or want. While a higher credit limit doesn’t make you overspend, it does make it easier to do so. And if you end up carrying a high balance on your credit card, you may have trouble paying it off and incur interest charges and fees.
• You may hurt your credit score with too many inquiries: When you request a credit limit increase, your credit card issuer may run a hard inquiry on your credit report. A hard inquiry is when a lender checks your credit history to evaluate your creditworthiness. A hard inquiry can lower your credit score by a few points, and it stays on your credit report for two years. Although the impact is minor and temporary, it’s a good idea to limit the number of hard inquiries on your credit report. This is especially true if you’re planning to apply for a major loan, such as a mortgage, in the near future. Too many hard inquiries can make you look like a risky borrower and affect your chances of getting approved or getting a good interest rate.

Conclusion

Amazon Pay Later is a great feature that lets you shop now and pay later on Amazon.in. It offers instant credit without any hassle or fees. However, if you want to increase your credit limit on Amazon Pay Later, you need to follow some tips and tricks that can improve your credit profile and impress Amazon and its lending partners.

So, what are you waiting for? If you haven’t already, sign up for Amazon Pay Later today and enjoy the benefits of shopping now and paying later. And if you want to increase your credit limit on Amazon Pay Later, follow the tips we have shared in this article and see the difference for yourself. If you have any questions or feedback, please let us know in the comments below. And don’t forget to share this article with your friends who use Amazon Pay Later. Happy shopping! 😊

Kuldeep Kumar

Hey there! I’m Kuldeep Kumar, and tech is my jam. From the mind-blowing world of AI to the thrilling battlegrounds of cybersecurity, I love exploring every corner of this amazing world. Gadgets? I geek out over them. Hidden software tricks? Bring ’em on! I explain it all in clear, bite-sized chunks, laced with a touch of humor to keep things sparky. So, join me on this tech adventure, and let’s demystify the wonders of technology, one blog post at a time.