Top Ways To Increase Your Credit Limit
After reading the post by mymoneyblog on How to increase your credit limit with a citibank card, I decided to find the top ways to increase your credit limit with most of the other banks. What I came up with is the top seven ways to increase your credit 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 credit cards 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 payback behaviour.
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. It never hurts to ask the banks either. The worst they can do is say no!