7 Simple Ways to Increase Your Credit Card Limit
Many credit card holders aspire for a higher credit card limit. The obvious reason for this is that
a higher credit card limit enables the purchase of otherwise unaffordable merchandise.
First and foremost, credit card holders need to remember that to get a higher credit card limit, they must abide by the terms and conditions of the credit card company or bank.
Below are 7 other ways to get a higher credit card limit.
• The most important thing to do for getting a higher credit card limit is to prove your credit worthiness. This is the first thing that banks and companies look for when giving a higher credit limit.
• Attract positive attention from the credit card company or bank by paying finance charges once in a while. Obviously, this is not advisable on a repeating basis and should only be used as a last resort to increase your chances of getting a higher credit limit.
Proving to credit card companies and banks that you are good “borrower” can be a convincing way to get a higher credit limit. But be careful because this strategy also means that you will be paying finance charges which can accumulate in a hurry.
And always remember, a higher credit card limit means greater purchasing power, but it also increases the risk of your having to pay greater interest charges and other processing and late fees.
• Always spend within your credit card limit because doing so means that you are capable of controlling your expenses.
• Use your credit cards regularly. Don’t keep your cards for emergency use only. If you use your credit cards sparingly, banks and credit card companies will be unable to understand your spending and pay-back behavior. Under these circumstances, most banks and credit card companies will be reluctant to give you a higher credit card limit.
• Never make minimum payments. Instead, try to pay for the entire outstanding amount. This will usually give you a better chance of getting a higher credit card limit.
• Avoid late payments as much as possible. Not only will your increase payment increase, but you may also have to pay an additional fine for not clearing bills on time. This will also dim your chances of getting a higher credit card limit.
• The best and simplest strategy for getting a higher credit card limit is to use your credit card wisely. Always keep in mind that credit card companies keep a record of your transactions and payment patterns, so always pay on-time.
The bottom line is that your performance in the records of banks and credit card companies will determine whether you’ll get a higher credit card limit or not.
Getting A Higher Limit On Your Credit Card
Nearly everyone who has a credit card always has the goal of a higher line of credit. A higher credit card limit will enable you to make much higher purchases, normally purchases that you are unable to get with your current line of credit.
There are ways that you can get a higher credit limit. Below, are some tips that will help you raise the limit of your credit.
The most important thing to do when improving your credit limit is to improve your overall level of credit worthiness.
This tells banks and lenders that you can be trusted with credit, and that you are little to no risk for them. When lenders and banks look at your credit report, this is the first thing that they look for.
You can attract a lot of positive attention with a credit card company or bank with your finance purchases. You should pay them every once in a while, although you shouldn’t go out of your way to make a habit of it.
Normally, this should be done as a last resort when all else fails to increase your overall chances of raising your line of credit.
Once you prove to a bank or credit card company that you can be trusted to borrow money, they may raise your line of credit. You should be careful with this strategy however, as this could only apply to your bank or current credit card company.
Having a higher credit line may allow you to have more purchasing power, although it can also leave you with more fees and even an increase in your current interest and APR charges.
Another great way to increase your credit limit is to use your credit card every chance you get. When you have a credit card, don’t use it just for emergency purposes. If you save your credit card for emergency purposes only, you’ll rarely use it.
When this happens, your company will begin to wonder about your spending behavior and ability to pay it back, therefore they will start to think twice about giving you a higher line of credit.
When you send in your payment, always try to pay more than just the minimum amount. If you can afford to, you should try to pay the whole outstanding amount.
Doing so shows credit card companies and banks that you are striving for better credit. This way, you’ll show them that you deserve to have a higher line of credit.
If you follow the above tips, you’ll get your credit limit higher in no time at all. Once you get your limit raised, you should protect it at all costs. If you continue to strive for perfection – you’ll get a higher line of credit than you ever thought possible.
Things To Do To Increase Your Credit Card Limit
Who wouldn’t like a higher credit limit on their credit card? This is because almost everyone I know loves shopping, and a higher credit limit means you can do more shopping.
This especially true for those higher priced items you can’t normally afford on your own.
However a higher credit limit also calls for a higher sense of responsibility, because you can bring bigger debt on yourself.
It doesn’t mean just because you have a higher credit limit you should spend your credit on everything you see. If you are the type of person who can handle the responsibility of a higher credit limit there are some steps you can take to get one.
A good way to increase the credit limit of your credit card is to ensure that you always follow the terms and conditions of the institution which issued your credit card.
This will ensure that you have a good credit rating and will come in handy when you want to raise your limit.
If you can show the issuer of your credit card that you are a responsible person when it comes to money they will find it hard to refuse you. They also know that if they treat you well you may bring other potential clients their way.
And as we all know, birds of a feather flock together. So when you are responsible, your friends are likely to be responsible too. This in turn means that your credit card company would be eager to please you, if you do your part.
Here is one other thing to remember. It is a great thing to have a higher credit limit, but the higher limit may come with higher interest rate payments as well as other fees that may be added.
So although your credit card limit may have been raised, you may now have to pay more, which may mean that you may be left with a little less.
But that’s a choice you’ll have to make for yourself. If you think a higher limit is what you need and you can be responsible with this higher spending power, then, by all means go for it.
How To Increase Your Credit Card Limit
If you have a credit card but are fed up because you have a low limit, then now is the time to start getting your limit increased.
It might seem tricky to get your limit increased, but if you follow a few simple steps then your credit limit will gradually increase to the level that you want.
Prove your creditworthiness
The most important step to getting a higher credit limit is to prove to the lender that you are worthy of a higher limit. This involves showing that you are financially stable and that you can make the payments back on what you borrow.
To show your lender that you are worthy to get a higher limit, you need to borrow wisely. If you use your card wisely and show that you can handle debt and pay back what you owe, then the lender will feel safe in lending you more.
Use you card regularly
If you want a higher credit card limit then you need to use your card on a regular basis. Keeping your card for emergency use will make it hard for the lender to understand your financial stability and payment history.
If you use your card regularly then you establish a buying history and the lender is more likely to increase your limit.
Keep up with payments
Obviously, to prove yourself a good borrower you need to keep up with your payments.
Make sure that you always pay on time, because paying late costs you money and will affect your chances of getting a higher limit. Also, make sure you always remain within your limit and that you pay more than the minimum each month.
Using your card regularly and paying off the balance each month shows you are a good borrower and financially stable. This is the quickest way to improve your credit limit.
Advantages of an increased limit
Increasing your credit limit, even if you don’t want to use the credit, can be a good idea. With an improved limit you have increased buying power, and have the knowledge that you can afford purchases in an emergency situation.
Also, having a higher limit can improve your credit rating, especially if you don’t spend the limit. It shows other lenders you are a trusted borrower but that you can control your spending.
Extra isn’t always best
Remember, although getting a higher credit limit can improve your buying power, unless you can afford to pay the money back it can be dangerous. The best way to use your credit cards is to get a limit that suits your needs and that you can afford to pay back easily.
However, if your limit is too low for you right now, then simply keep paying on time and show you can handle a bigger limit. If you do this then you will quickly improve your credit limit to the level you need.
How Can I Change My Credit Limit?
Many people ask this question and for different reasons. Some of the reasons for wanting a higher credit limit are good and sensible reasons.
Others are not. Let’s look at some of the issues involved with changing your credit limit.
Your credit limit is the maximum total amount that you may use on your credit card. This total amount includes everything including purchases, balance transfers, cash advances, fees, and finance charges.
This is a pre-set limit and if you go over this amount you may have to pay a penalty fee. When you increase your credit limit you are able to purchase more without incurring penalties. It is that simple.
Here are some tips to help you get a higher credit limit on your credit card.
First, you should ask your card issuer to send you any literature that they may have concerning their policy on requesting a higher limit.
Some companies do not have this in writing, but many do. When you read the literature you can assess whether or not you can meet the added requirements.
Second, you should understand that much of the decision on whether or not you will get the higher limit will be based on how well you have paid your bills so far.
If you have not been prompt on your past bills, the card company may assume that you will not be prompt with the higher level.
Another issue that you should examine is timing. If you only received the card a few months ago and have already maxed it out chances are the bank or card issuer will want to wait before allowing you greater limits on your credit line.
When you have a card that is already maxed out, it is a good idea to make sure that you make prompt payments for at least six months (or longer) before asking for more credit on the same card.
If you know in advance that you will want to increase the credit limit on a particular card, use that card regularly and make your payments on time. This shows the company that you are using the card and that you are credit worthy.
The size of your payments will make a difference as well. Whenever possible, pay the outstanding balance on your card a few times.
This shows the bank or issuer that you are on top of your finances. Try to avoid only making the minimum payments as this may cause the company to wonder if you can make higher payments with a higher limit.
Try to never have to make late payments. The card issuer will certainly look at how often you make late payments and this will not help your case when asking for a higher credit limit.
Perhaps the best way to get a higher limit is to simply use your current card wisely and to make your payments on time. This means more to the issuer than you can imagine.
Keep in mind that if you are already struggling with credit card debt, having more access to credit may be very harmful to your financial future.
Many people believe that if they can only borrow more, they can get out of debt trouble. For the most part, this does not work.
If you truly need and can afford a higher credit limit, then ask for it. With a good history of past payments you will probably get it.
Credit Card Facts
FEES TO BE PAID
Under any circumstances, the following are charged by most credit card companies:
Annual fee Paid for being a user of the card
Cash advance fee. Paid when the card is utilized for making a cash advance; usually a flat fee or a percentage of the amount advanced
Balance-transfer fee. Paid when a balance from another credit card is transferred to the other card. Checks are usually sent to pay-off the card. Balance transfer happens when the check is used to settle the amount due on the other card.
Late-payment fee. Paid if payment was done after the date due
Over-the-credit–limit fee. Paid for payments exceeding the credit limit
Credit–limit-increase fee. Paid for a credit limit increase request
Set-up fee. Paid for opening a new credit card account
Return-item fee. Paid for returned checks when bill payments by check was done for insufficiency of funds (meaning, the check bounced)
Payments made for over the phone settlements, cost coverage for credit bureau reporting, account review, provision of other customer services. Other fees and charges are information which may be found on the credit card agreement.
The credit limit is the maximum cost – for making purchases, cash advances, transferring balance, finance charges- which may be charged on the credit card. An over-the-credit–limit fee will be paid for exceeding the credit limit.
FEATURES AND INCENTIVES
Incentives and special features are offered by many credit card companies for using the card :
Rebates money discounted on purchases
Regular flier miles or minutes for telephone-conversations
Additional warranty coverage for purchased items
Insurance for car rental
Insurance for accidents incurred while in travel
Credit card registration, in case wallet is lost or stolen and a report of missing credit cards had been made
For a certain amount, credit cards may also offer,
Insurance coverage on credit card balance payments for card holders who become jobless or disabled or suddenly dies.
Premiums are usually paid monthly, allowing payment cancellation if payments are more than what the desired payment amount is or if the insurance is no longer needed.
Insurance coverage for the first $50 of charges in case card is lost or stolen. Charges over $50 are protected under federal law.
Prior to availing of these special features, carefully decide whether these features are useful. Never pay for a feature which is not needed or is not useful.
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