Credit Card limit is the amount granted by the credit card provider to the credit card holder for their expenditure. It indicates the amount that the credit card holder can borrow. Whatever ‘credit’ is available subtracting the outstanding amount will be the ‘Credit limit’. The maximum credit limit provided differs from each person and is decided based on several factors including the previous history of an individual with credit cards. Though every credit card comes with a fixed credit limit, the banks increase the credit limit on the customer’s credit card based on how they manage their account. A good credit limit will reflect very well on your credit history and in turn increase your credit score.
There are several ways through which one can increase the credit limit on their credit card. Listed below are some of the most common and easiest methods.
- Don’t be greedy-
When you approach the bank to request for a credit limit, ensure that you don’t ask for too much. A request for an increase in credit limit within the first few months of availing a credit card will also reflect badly on your credit history. It is safe to stick to an increment of 10% to 20% on your existing credit limit. Being reasonable with the request will better your chances of getting a higher credit limit.
- Have patience-
Every bank will automatically increase your credit limit on your credit card after a certain period of time. Waiting for the bank to increase the limit on your credit card automatically means that you don’t have to send a request. One of the best ways to get a credit limit increase is to ensure that you already have a low limit.
- Don’t lock your credit card away-
Using your credit cards wisely doesn’t mean to use them sparingly. By using your credit card frequently and making payments on time, you will assure your credit card provider that you are an eligible candidate for a credit limit increase.
- Don’t get greedy again!-
Don’t request for a credit limit on all your credit cards, this might do more bad than good. Every time you ask for a credit limit, the bank send out a request for your credit report which will have a negative impact on your credit score. It is best to stick to one credit card and request a credit limit increase on that particular card.
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