Follow these Tips to Increase Your Credit Card Limit
A credit card is a convenient tool and comes in your everyday use. Indeed, you can shop now and pay later, but credit cards have a usage limit that prevents you from spending money beyond your monthly credit. The credit limit is for safety, but if you have the potential to pay more bills, you can increase your limit.
When someone overspends their credit card, they tend to default often. In addition, such a large amount charges enormous interest, which causes more trouble. However, if this is not the case with you, you can increase your credit limit since you have plenty of options to follow.
6 Ways to Increase Your Credit Card Limit
As the name explains, the credit card limit is capped by the bank or company that issued your credit card. In particular, you can spend only your maximum monthly limit. So, for example, when you apply for a credit card and the bank grants you an INR 30,000 limit per month, you cannot spend or make transactions more than that.
Therefore, increase your credit limit if you want to spend more. Once you have a good credit score, you’ll get various credit card options and can even increase your credit limit. also you can check high risk merchant services provider.
- Pay Off Your Dues On Time
You must pay off all your credit dues on the road to increasing your credit limit. So check if you have any pending dues related to the previous month, and clear them ASAP. Plus, if you pay your dues on time or in advance, the credit department might increase your credit limit by checking up on your maintained credit profile.
- Showcase Your Increase Income Proof
Monthly earnings and repayment potential is one of the major factors in credit card. It also determines your credit limit. So if your monthly income has increased since you received your credit card, you can clarify or verify it with the bank.
You must submit your new salary slip and income proof to boost your credit limit. Or, if you have any additional income source, you can also use it as evidence to increase your credit card limit.
- Maintain Low Credit Utilisation Ratio
The credit utilisation ratio depicts the use against your credit card’s monthly limit. You should maintain a ratio below 30% to get a better credit limit on your card. So when you pay your bills on time, it will reflect on your credit history report and boost your credit limit.
- Apply For a New Card
Another great way to increase your credit card limit is by applying for a new card. When you apply for a credit card in a new bank, the chances are higher you’ll get a better credit limit. The banks or financial companies will check your history and payment discipline before allocating you a new credit card.
- Eliminate or Reduce Your Liabilities
When you apply for a credit card or credit limit increase, the bank first checks if you have any existing liability. If you’re already in debt, the chances of getting your credit limit increased turn very low. So if you need to increase your credit limit, you are advised to get rid of the current dues first.
- Make Credit Score Healthier
Your complete credit history depends on your credit score. If you have a healthy credit score, banks will ask you to borrow more money, and vice versa if you have a low credit score. The credit score increases by paying bills on time. So if your sole purpose is boosting your credit limit, you should focus on paying on time or in advance.
The facility of cashless goods and services through credit cards is excellent. You buy anything that comes under the credit card limit and can get more based on your credit score. But whatever amount you spend through your credit card, you must pay on the due date to keep your credit score healthy and avail more rewards.