Everyone wants more from life, and credit cards have emerged as a way to get any item or thing you have set your heart on. Besides, these also come in handy in emergency situations. With the availability of lifetime free credit cards from leading banks like IDFC FIRST Bank, the credit card scenario has become even more attractive. However, most credit cards come with a spending limit, which differs for different people based on a few factors. But did you know that there are ways you can effectively increase your credit card limit? So, if you are searching for how to increase your credit card limit, this article explains six tried and tested methods.
A Few Key Facts To Consider
A higher credit card limit seems great, but it also requires careful consideration. Before delving into the ways to increase credit card limits, have a look at a few basic factors.
- The kind of credit card and the bank that issues it significantly impact the credit limit. IDFC FIRST Bank offers credit cards with low-interest rates like 9% p.a. It also offers a host of other advantages, like reward points that never expire. So do your research when you apply credit card online.
- Recognise the policies of your credit card provider regarding credit limit increases before asking for a greater credit limit. While some issuers demand a formal request, others allow automatic increases.
- Evaluate your present financial status, taking into account your earnings, outlays, and outstanding loans. Make sure you can responsibly handle a greater amount without accruing debt. Ensure that your credit card uses and finances align.
Six Methods to Increase Credit Card Limit
The six tested ways to increase your credit card limit are explained below.
Have a Good Credit Score
Your credit score plays a major role in determining your creditworthiness. Raising credit card limits is essential, so you should prioritise using a credit card to raise your score. If you consistently miss deadlines or don’t pay your payments on time, your score will probably suffer. Additionally, having several credit cards and loans open at the same time will hurt your credit score.
Repay Dues
It is essential that you pay off your credit obligations in order to persuade the credit bureau to raise your credit limit. Make careful to pay off any outstanding balances from the prior month if they are carried over. Next, make an effort to pay any upcoming payments before the due date.
Use Credit Card More Often
By using your card to make regular payments and paying your bill on time, you give the credit card company a positive example.
Credit Utilisation Ratio
The ratio of the credit limit you are utilising to the maximum amount allotted to you is known as the credit utilisation ratio. Experts advise maintaining this ratio below 30%. You might obtain the maximum credit card limit by doing this.
Show Proof of Income
If you have earned a pay increase, you can submit your updated income statement. A greater income suggests greater liquidity and boosts the borrower’s trust in the lender. Once they determine that you are doing well financially, they are more inclined to raise your credit limit.
Make a Request
Asking for a credit limit increase is one of the easiest methods to get one. The card issuer should have no trouble reviewing your request if you have a consistent source of income and have always paid your bills on time.
Bottom Line
These tried-and-true techniques will help you increase your credit card limit and have more financial flexibility. To keep your credit profile in good standing, use your enhanced credit limit sensibly, stay out of debt, and make your payments on time.