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7 Smart Tips To Increase Your Credit Card Limit

credit-card-limit-blog

Credit cards make life so much easier until you have used up the limit. The good news is - you have an option to increase the credit card limit. You can either do it before or after you apply for a credit card.

Here are seven smart ways to raise the limit on your credit cards:

Make a direct request

Your bank can increase the credit limit of your existing card if you make a request. This will depend on various factors such as your credit history and income. If you own multiple cards, select the card for which you would want to increase your limit.

Boost your credit score

Your credit card limit greatly depends on your creditworthiness, which is dependent on your credit score. If you have never defaulted on paying your monthly instalments, it can help maintain a higher credit score. You can improve your score by using and managing your credit cards well. Pay your monthly bills on time to show the credit card bureau that you use your card often and you need a higher limit.

If you want to know how to increase your credit score, get in touch with us.

Update your information

Sometimes banks may not be aware of any change in your financial status which could make you eligible for a higher credit card limit. You would have received a substantial pay hike in the past few months, but you might be still using your old credit card with a pre-set limit. In such cases, you can inform your bank and ask them to increase your limit on your new card or issue a new card with a higher limit.

You should also consolidate your accounts to give the bank a better financial picture. Instead of having several bank accounts with small sums in each, put all your money in one account. This will offer a better picture of your finances.

Repay dues on time

It is important that you first pay off the dues on your credit cards. Clear any pending dues from the previous month that is carried forward. Next, pay off the future bills in full before the due date. Making the repayments on time will help you showcase your capability to manage your credit cards.

Set a limit

Asking for too much of an increase can be seen as a red flag, and your request can be denied. You would then have to wait for a few more months to apply. Set a reasonable expectation and ask for the same during your application.

Justify your request well

Avoid calling the credit issuer with stories of an emergency, expecting them to empathise with your situation and increase your credit card limit. Instead of telling them why you need it, tell them why you deserve it. Here are some good reasons why:

  • You’ve been a loyal customer for a certain period and have never missed a payment
  • You’ve been a customer for at least 6 months before asking for an increase
  • Your income has recently increased
  • You pay your balance in full every month
  • Your payments are always on time
  • You’re using 30% or less of your current limit

Speak kindly to the person on the other end of the phone. Being rude will be unlikely to help your case and could reduce the chances of getting a credit limit increase.

Avoid asking for recommendations

Don’t ask the representative how much you should request. Credit card companies may prohibit their employees from offering this advice to you. The percentage of increase will be different for every customer. The better your profile, the more you can expect.

Now that you know how to increase the limit on credit cards, be responsible and stay within the credit limit to be free of debt and penalties.

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

 

 

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