2. Sourcing Based on Non-Income

Here, the credit limit is calculated on the basis of the bills that you make. In case you are a shopper at a particular merchant outlet or a frequent flier with particular airlines you will be offered a credit card from the bank which is associated with the merchant outlet which you frequently visit. In such cases, the credit limit is determined by the amount of annual spending you make.

On the other hand, if you have taken the credit card that was offered to you by the co- brand, be aware that your card issuer will take in to account of your spending trends. 

For example, if you are spending 1 lakh annually on that particular merchant outlet, the credit card company will set the credit limit by using a multiplier on your income.

Sanjay Patel, managing director and CEO at Equifax Credit Information Services says that "When an agent approaches you for a credit card while you are standing in the queue of a merchant outlet, he will not ask for your income documents. The credit limit in such a case will be based on your spending pattern”.

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