How do I increase my credit limit? When you apply and get approved for your credit card, the insurer will give you a credit limit based on your credit score, income, and other important financial obligations. Most credit card issuers will assign you a high credit limit once you create a good relationship with them, while some will not. It means you may have to request a credit limit once you need it.
However, you need to know that increasing your credit limit can be harmful or helpful to your credit score. And this solely depends on your financial stability. In other words, if you can make payments on time, getting an increase in your credit limit will help your credit score and give you flexibility.
But if you have a bad overspending habit, an increase in card limit can worsen your situation worse. Nevertheless, keep in mind that increasing your limit will help to keep your credit utilization rate very lower. And also give your more spending power and make up a large part of your credit score.
Why Should I Increase Credit Limit?
If you manage your card well and do not spend more than your budget, an increase in credit limit can be a very good option. Having a high credit Limit is a better way of increasing your spending power. Having your credit available at hand means you can purchase large quantities or numerous small ones. Also, increasing it makes it easy to qualify for a new card. Since you will be using one account, you will be able to manage and maintain it.
What are the benefits of Increasing Credit Card limits?
When it comes to increasing your credit limit, there are lots of benefits that come with it. However, below are some of the important benefits;
- This helps you Improve your credit score
- It helps to Improve credit utilization
- You will be able to make large purchases (Spending power)
- improve borrowing terms in the future
You can enjoy the above benefits if you increase your credit limit. If you know it is a good choice for you, you can increase it today and enjoy more advanced benefits,
What to Consider if you want to Increase Your Credit Limit
Although increasing the credit line is a very tempting choice, there are some things you have to consider. So that, you won’t harm your credit score in the end.
- Be sure that you can make payments on time and afford the credit fees
- Make up your mind for the consequences and disadvantages that come with it
- Timing is important
- The process can initiate a hard inquiry on your credit report and knock off your score.
Once you have considered these important factors that can impact your credit score, then you can choose to incase the limit or not. Consider everything so that it won’t affect your credit score negatively in the process.
How to Increase Credit Limit
Just like I have said above, you can easily request a credit card increase because there are many ways to go about it. However, below are some of the easiest and fastest ways to increase your credit limit
Request a credit or bank account
Most credit card companies allow people to request a limit increase online. You can just log in to your credit card account online and check out the option with a credit limit or credit line increase. This will require you to provide certain income details which will be used to check if the increase is a good option for you. Also, you are required to share certain updated info about your income and housing expenses.
Contact your credit card issuer’s customer support
You can contact the card customer service using the number on your credit card. Ask the customer support representative if you are qualified for a credit limit increase. And just like the online process, you will be required to put down certain information about your financial life.
Search and Find Automatic Increases
Some card insurers give people automatic credit card limit increase if they have been using the card for a long period. Or if they use it responsibly.
You can apply for a new card if your credit is a better shape and don’t want to make use of the above process. Even though the credit limit is higher than the current card, it will still help increase your available credit in total.