How to Increase Credit Card Limit: 4 Easy Ways

First things first!

The phenomenon of opting for a credit card limit increase is not at all about getting the extra spending power. It comes with many long-term benefits.

The first thing that you can note is that it may have a positive effect on your Credit Score. It can also lead to a reduction in the overall credit utilization ratio.

It also denotes that more credit options will open for you at a lower rate of interest. What’s more, having an extra credit card limit will also help you manage any urgent cash crunch with elan.

Hence, if you are willing to apply for a new credit card, you should instead try to get the credit card limit increased from your existing lender. It is largely because the CIBIL Score may get affected by having newer credit accounts.

You can get your credit card limit increased by following some simple tips. Let’s explore more as you read on!

Simple tips to get your credit card limit increased

• Ask for a credit card limit increase

The most basic thing is asking and sometimes, asking the right thing can give you results. It is also true in the case of asking for a credit card limit increase. As a result, you can ask your existing credit card lender to simply enhance the credit card limit. Customers who have been able to maintain good spending and repayment history can ask for a credit card limit increase. The lender may oblige by looking at your track record that you will find no issues in repaying the extra allotted amount. However, the trick is not asking for it too early, say when your credit card is 6 months old. It may show that you are a credit hungry person and the company may not approve the request. Instead, you should wait for at least a year, build good credit and then ask for the credit card limit increase.

• Use your credit card limit frequently and responsibly

Before you can begin asking for a credit limit increase, you would first need to build a solid base for it. To do that, you would need to maintain a robust spending and repayment record. You can do that by spending a considerable amount per month and pay the payment in full, before the due date. Also, make it a point not to pay the minimum amount due at all. Doing these will show your lender that you are a responsible credit card user. Hence, you may be allotted a higher limit. Try to hold your cash usages and flash out your credit card to make even a small payment.

• Choose the credit card on which you wish to increase the limit

The credit card on which you are willing to get an increase in the limit should be the one on which you get the best of the reward points. It will help you make the most of the deals and discounts upon the increase in the limit. You should also limit the number of credit card you wish to ask for a higher limit. It is because every time you will ask for a credit increase, a lender will pull your CIBIL Score. Hence, too much hard enquiries will also reduce your Credit Score. Thus, target only one card that works best for your needs, and ask for a credit card limit increase on it only.

Bajaj Finserv RBL Bank SuperCard can give you 20,000 reward points on joining as a welcome gift. You can use it later to get exclusive deals and discounts on future transactions.

• Negotiate better

It is now the time to use all your negotiation skills at work. You may start by informing the lender that you both go a long time in partnership and you are a loyal customer. You can tell them how good you have maintained your credit limits and repaid the bills in full before the due date. You can also them that promotion and a salary hike are due in some time. It would mean more income will be enough for you to manage the new limit. But, if you are sure to change a job, don’t inform the lender about it. Job switching is considered a risk by a lender even if you are getting a 30% increase in the salary.

Some of the steps that will help to get a credit card limit increase are now discussed. If you are yet to apply for a credit card, lenders such as Bajaj Finserv offers pre-approved offers on credit cards, EMI finance, personal loans, home loans and more.

It is created to simplify the loan procedures and make it less time-consuming. All that you have to do is share basic credentials to check out your pre-approved loan offers.