Ways to increase the credit card limit
The limit of every credit card is decided by the bank, depending on the information provided by the individual such as age, gender, occupation, monthly income etc. It is important to maintain the set limit of your Credit Card, decided by the bank which is fruitful in establishing a good credit score and keeping the debts at bay. If you don’t have good CIBIL Score, you may get an apply for personal loan online, but it will come at a higher interest rate.
The limit on your credit card gives you the liberty of spending it responsibly. If you use a credit card wisely and make all the payments on time responsibly, the limit on the credit card can be increased.
Below are a few ways to increase the credit card limit:
1. Improving the credit score – This is the very first and significant factor, which the bank takes into consideration while determining the credit card limit. Therefore, it is essential to clear all your dues and debts on time. It will improve the CIBIL score, and can get you a higher credit limit on your credit card.
Another crucial factor to bear in mind is to avoid getting into unnecessary debts by spending the credit card wisely. Usually, less than 30% is considered to be a good credit utilization ratio, which implies you’re using less than 30% of the credit score available to you.
2. Updating your increment to the bank – An increment in the income should be intimidated to the bank, for a higher credit card limit. The bank may increase your limit on the existing credit card or issue a different credit card with upgraded rewards. The bank will offer an increase in the limit, matching your current financial status.
3. Requesting the bank for increasing the limit – If the dues are cleared timely by the applicant, usually the banks offer an increase in the credit limit annually. Rewards and bonus points are also offered by banks on the increase, boosting the spending limit of the credit card. In acute need of money, these limit on the credit card can be utilized to meet the urgency.
4. Request to increase the credit card limit –Some credit card issuer raises the limit of the credit card, on the borrower’s request. You can apply for the increase in the limit on the credit card, by visiting the bank’s website or by visiting the bank branch personally. This can also be done by calling the customer care executive of the respective bank and requesting for an increase in the limit of the credit card
5. Waiting patiently for some time – You can wait for at least six months, before requesting the increase in the limit of your credit card.
To be utilized during times of emergency, the credit card limit comes in handy and can be utilized to its full potential. Hence, it is crucial to keep a tab on its usage and should be restricted to the minimum.
Read more:-
How to Improve Your CIBIL Score?
Are you self-employed and wondering whether you can avail of a Personal Loan?
Why you should apply online for an HDFC Personal loan?
