How to Increase your Credit Card Limit? Useful Tips and Tricks

Thinking about how to increase credit card limit? Don’t worry, I am here to help you with these useful tips to increase your credit card spending limit right here in this post.

What is a Credit Card Limit?

The credit limit is the maximum limit on credit cards in terms of money that an individual can spend. If your bank gives you a card with a limit of Rs.30,000, that’s the maximum you can pay.

But the limit depends on the type of card and the customer’s eligibility. There are many ways to increase your credit limit. Let’s look at the easiest ones.

How to increase Credit Card Limit?

Boost the Credit Score

As the credit limit depends highly on your credit score, you must be aware of its importance.

A credit score is the only key to raising the credit card limit. Its also known as the CIBIL score in India.

This score is the performance review for your credit card usage and determines the credit value. If you have always been disciplined about your monthly installments, getting a higher credit limit should be effortless. 

So, try to use a credit card to improve your credit score. For instance, you can pay your monthly bills using the card and present it to the credit card bureau, saying that you use it often to pay the bills, and that’s why you require a higher limit.

Repay dues within deadlines

If you want the credit bureau to believe your story and actually improve your credit limit, first of all, you need to pay off the credit dues.

Clear all the pending dues from the past months first. Then try to clear all the future bills before the due date hits. Repaying on time represents that you can handle debts. 

Maintain the Credit Utilisation Ratio.

It is the ratio of your credit limit and the maximum limit you get over credit cards. According to the experts, it is best to keep this ratio below 30%.

A high credit utilization ratio would mean that you are unable to manage your expenses wisely. That’s a bad impression for a credit card company.

Maintaining this ratio below 30 percent will boost the credit score and help you reach a higher credit limit.

Show proof of increase in income

The most powerful factor a credit card company considers is paying dues on time or earning potential.

If you have recently got a hike in your salary or have multiple ways to increase your income, make sure you submit it to the credit company. It will also help in improving your credit limit. 

There could be a case where you get a sudden rise in the salary, but you are stuck with your old credit card. Then you should visit the bank and show them your latest payslip.

You can use it to request a credit card upgrade and a rise in credit limit.

Eliminate any financial obligations over you

Whenever you ask for a hike in your credit card limit, the bank will check out any possible debt over you. This includes personal loans, home loans, EMI, etc. First, you should get rid of fixed deuce and then ask for a hike in credit limit.

Apply for a new card

The most effortless way to increase credit card limits is to apply for a new card with a higher credit limit.

If you have a good record of making the payments on time in the past, you should get the card quickly. 

Conclusion

A higher credit limit is required if you are unable to fulfill your needs within the present limit. An improved limit is easier to get loans, great for international travels for emergencies, and also helps improve the score in the long run.

So definitely try one of the above-mentioned steps to increase your credit limit.

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Also See: What’s the difference between Debit Card and Credit Card? Which is Better and Why?

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