Many cardholders yearn for a higher credit limit, especially when it comes to items they want to buy but can’t afford. If your reasons for wanting a higher credit limit are good and wise, here are some tips to help.
The credit limit is the maximum amount you can use on your credit card. This total includes all expenses such as purchases, balance transfers, cash advances, handling charges and financial expenses. This limit is set in advance when the card is opened. And if the total charge exceeds this amount, you may have to pay a penalty fee. But if you raise your credit limit, you can spend more money without penalty.
Understand the policies of card issuers
First, you need to know your card issuer’s policy on applying for higher limits. For companies that can provide information in writing, you can ask them to send it to you. By reading the literature carefully, you can assess whether you can meet the increased requirements.
Bill paying habit
Second, how well you’ve paid your bills so far largely determines whether you’ll get a higher limit. If you have a bad credit history, such as not paying past bills in time, the credit card company may think you can’t pay a higher amount.
Card opening time
Another thing you need to be aware of is timing. If you only received the card a few months ago and have already reached your maximum limit, your bank or card issuer may not agree to your higher limit for a while.
Full repayment on time
When you’ve reached your credit limit, it’s best to make sure you make prompt payments on time for at least six months (or more). Try not to pay late. When you ask for a higher credit limit, credit card issuers will definitely look at how often you are late with your payments. And often late will work against you.
So if you need to increase a card’s credit limit, use that card regularly and pay on time. This will show the company that you are using the card and that you are trustworthy.
Also, overpay the outstanding balance on your card whenever possible. This shows the bank or issuer that you are financially sound. Try to avoid paying only the minimum payment. As this may cause the company to doubt your ability to pay the higher payment.
So the best way to get a higher limit is to use your current card wisely and pay on time. You might not think about it, but it’s really important for publishers.
But if you’re already stuck in credit card debt, getting a higher credit limit can be very detrimental to your financial future. Many people think they can get out of debt if they just borrow more money. Unfortunately, for the most part, that doesn’t work. Don’t dream of paying your debts with debts. Be realistic and reduce your debt before you ask for a higher credit limit.
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