A lot of users complain about credit scores is one of the main points is credit limit is too low. They have no idea to get their credit limit high. So, this article gives you some important tips that would help to boost your credit card limit.
What is Credit Card Limit?
The credit card limit is the transaction limit of our card. It is usually set by a credit card company. Every credit card has a specific credit card limit or transaction limit. Beyond that limit, users cannot spend money. For example, if the user has a 50000 credit card limit then he/she can do a transaction of 50000. The credit limit varies depending on the type of Credit Card you use and your eligibility.
Tips for Increasing the Credit Card Limit:
- Boost your credit score:
It depends on a user’s credit card performance. You must pay from time to time monthly installments of a credit card. It is the only way to boost the credit score of any type of credit card. It would be easier to get a high credit limit for a credit card. You can use the card to pay your monthly bills and show the Credit Card bureau that you use your card often to pay the bills and that you need a higher limit.
- Repay dues on time:
It is one of the most important ways to get your credit score increase. For increasing the credit card limit, you have to convince the credit card bureau to increase your limit. You must have to pay first the previous month’s dues. If you have any pending dues from the previous month that is carried forward, it will badly affect your credit score and it will be hard for you to increase your credit card limit. So, firstly make sure to pay previous dues. Next, try to pay off the future bills in full before the due date. By making the repayments on time, you can show the company that you can deal sensibly with your Credit Card Company.
- Be careful about the credit utilization ratio:
It is the most effective factor to get a high credit limit for your credit card. This helps to boost your credit score. The Credit Utilisation Ratio is the measure of the credit limit you are using against the maximum limit granted to you. Experts suggest that, if you have to boost your credit score and also increase the credit card limit you must keep this ratio below 30%. This would help you get maximum Credit Card limit in one of the most important ways i.e., low credit utilization ratio suggests to the Credit Card company that you do not avail too much to manage your expenses. A low credit utilization ratio will boost your credit score and indirectly help you get a higher credit limit.
- Show proof of increase in income to the company:
If you want to increase the credit card limit this way, you have to show them some proof of increased earnings to the company. You have to make some ways to increase your income. The earning potential and the ability to repay the dues on time is the most important factor that Credit Card companies consider while determining the credit limit. In this way, you have to show the same proof to the company and it would be easy to get increase the credit card limit.
- Apply for a new card:
The easiest way to increase the Credit Card limit is to apply for a new card that has a higher credit limit than your existing card. If you have been disciplined with your payments, you would easily get a card with a higher credit limit.
Increasing the credit card limit is easier than it sounds, especially if your card is in good standing or you recently received a raise. Since it can affect your credit score either positively or negatively (or in some cases both), requests for an increase in your credit limit should be seriously considered, especially if you’ve had bad credit in the past.