Ok, so how can you increase your limit? Below are some ideas on how to get a higher limit:
Now why would you want to do that? Most people want to do that because a higher credit limit on your credit card will enable you to purchase more consumer items than a lower one, thus more leverage and buying power.
Consumers need to remember that to get a higher credit card limit, they must abide by the terms and conditions of the bank, aka FOLLOW THE RULES. If you don’t follow the rules, your interest rate can go up, you will end up paying high fees, and you will ruin your credit.
Try following these rules:
First prove to the bank that you are credit worthy. Unfortunately, when it comes to credit, you are guilty until proven innocent. Another words, the Banks simply do not trust you. Well sometimes they do. They trust you once you build a positive, responsible credit history. So used your credit card responsibly, pay your bill on time, don’t over utilize your credit limit, and you will be on your way to being innocent rather than guilty.
Never make charges with will go above the credit limit after charges and interested. There is a limit for a reason. Show the bank you are capable of controlling your expenses. The bank will keep track of your credit history, so they will be watching!
Never make late payments. Not only will your increase payment increase, but you may also have to pay an additional fine for not clearing bills on time. If you pay late, this will lessen the chance of you increasing your credit limit as the bank will not have confidence that you can handle it.
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 pay-back behavior. 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 as it will show the bank that you have good income and you are responsible in paying off your debt.
On the flip side, some people speculate that you have to give a little once in a while. We personally have not seen a need for it, but the theory is by paying finance charges once in a while rather than paying off the card every month with no interest fees, is good to do as it give the bank a taste of revenue, and they love revenue. So, let the bank wet their beak once in a while and finance some of the balance without getting into too much debt!
Ask for the credit line increase! FINALLY, once you have shown the bank you are a responsible credit worthy candidate for a credit line increase, you have one last step. ASK FOR THE CREDIT LINE INCREAE. If you don’t ask you don’t get sometimes in live! So call up your bank and ask them!
Please note: some banks will give you an automatic, minimal credit line increase with no credit inquiry! So don’t forget to ask about that. But, if you want a larger amount, you may have to agree to them doing a hard inquiry on your credit reports.
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