Credit cards have become an essential part of daily transactions as it extends an individual’s spending capacity. However, they come with a predetermined limit known as the credit which the cardholder cannot exceed.
Nonetheless, if you cannot afford something on your current credit limit, you can always extend it by contacting your card issuer. Your limit will be raised once you meet all the eligibility requirements set by the financial provider.
Here are a few other ways to know how to get a credit card limit increase and raising your credit score in the process.
Know how to get a credit card limit increase with reduced liabilities
Having a high fixed obligation to income ratio (FOIR) may prevent you from spending much on your credit card. Paying off existing loans decreases your FOIR. Lower FOIR refers to lower loan liability.
You can then approach your card issuer with the closure documents and request a higher credit limit. Your higher spending capacity should make you eligible for a higher credit limit on your credit card.
By showing proof of increased income
If you have received a promotion or a raise, then update the necessary documents indicating such an increase to your financial organization. After due consideration, the card issuer may raise your credit card limit automatically over time.
Request for an increased limit
If you have been wise with your credit card usage and have been doing so for a few years, you can ask your financial organization to grant you a higher credit limit. You can either opt for a new card with a higher credit limit or ask them to raise the credit on your existing card.
Timely bill payment
Timely bill payments reflect positively on your credit score. It shows your card issuer that you are a responsible customer. In such cases, they can offer you a higher credit limit. In case they do not, you can approach them with your card statements and negotiate for higher credit.
Wait for the issuer to naturally raise your credit limit
Card issuers are more likely to increase your credit limit if they see you as an active customer who frequently uses their card for transactions. At the same time, you must not utilize the full limit on your card as it can negatively reflect on your credit score and represent you as an individual with excessive dependence on borrowings.
Not leaving a credit card unused for extended periods
Some financial institutions can increase your credit limit if you use it regularly. Availing a card and leaving it unused for long periods can affect your chances to get a higher limit on it.
On the contrary, you can become eligible for a higher limit by showing yourself as a responsible cardholder, who makes good use of their available credit.
Avail a new card
You can always choose to avail of a new credit card with a higher credit limit. If required, you can also opt to avail of a new card variant from the same card issuer altogether.
You should know when and how to pay the credit to your card issuers. It is recommended that you remain mindful of your payment due date so that you can repay your credit card debt without incurring any fines.
While opting for the Bajaj Finserv RBL Bank SuperCard. you can also avail of various additional benefits offered by some of the top financial institutions.
A higher credit limit is usually accompanied by additional benefits that can save you substantially over a year. While searching ways on how to get a credit card limit increase, it is advised that you also consider associated benefits offered by the card.