Increasing your credit limit is not impossible, but just because it’s possible doesn’t mean you get to buy whatever you want, especially things that you can’t usually afford without a credit card. Yes, your credit card issuer can boost your credit limit, which can increase your buying power, lower your credit utilization, and aid your credit scores, but you need to watch yourself.
Before you can even think about asking for an increase in your credit loan, you’ll need to convince your lenders that you can be responsible for the loan they give you. However, depending on your financial situation, increasing your credit limit could either be helpful or harmful.
At times, your creditor will increase your credit limit automatically. But if they don’t do that, then you can ask them to increase your credit limit, although it could come with a hard inquiry. Whatever the case may be, this article will show you how to get a credit limit increase.
When You Should Ask For A Boost In Credit Limit
Asking for an increase in your credit limit requires the proper timing for it. Here are some of the best times when to ask for credit limit increase:
When You Have a Good Credit Score
One of the best ways to ask for a credit limit increase is by maintaining a positive credit score, which informs your creditor that you’re responsible for the money you were loaned. Hence, you’re more inclined to pay the bills on time and understand the limitations of how much you’re able to charge every month.
You can use personal finance websites or apps to monitor your credit score. But a good credit score isn’t necessarily an indication that your financial health is positive. However, your card issuers might assume that both are with you, so do your best to give them that impression going forward.
To learn how to avoid getting a bad credit score in Ontario, Canada, simply visit Loans Geeks.
When You’ve Gotten A Raise
When your boss has given you a raise, This could be an excellent opportunity for you to update the income that’s shown on your credit card account, which could lead to an automatic increase in credit line after a couple of months. You can even request for an increase while also entering your new income. This gives your creditor the confidence that you can afford more expenses.
Maintain An Excellent Payment Record
The more you pay your bills on time without maxing out your card, the better your chances will be to get approval for a credit limit increase. But if your credit utilization rate is high and you’re making late payments, this means that you’re having trouble with money. Your chances of getting an increase will be even better if you maintain one account with your creditor between six months to a year.
When You Change Your Spending Habits
Your credit score can take a hit in case of major events like starting your own family, buying a house, or going to the hospital to treat a serious illness. Besides that, you might incur even more expenses such as buying a new refrigerator or doing some grocery shopping for your family that requires a bigger credit limit.
Now with that out of the way, here are some of the best ways on how to get your credit limit increase:
Best Ways To Increase Your Credit Limit
Make Sure Your Payments Are Done On Time
By far, the best way to give your credit limit a boost is to pay your credit card bills on time. Credit card companies will review your credit report every six months or so to determine whether your limit should be higher depending on how you handle your money. If you maintain a positively attractive credit score and pay the balance off every month, your creditors will be convinced to increase your credit limit.
Apply For A New Card With A Higher Credit Limit
There may come a time where you’ll just need to apply for a new card in order to get a raise in your credit limit. Sometimes, this may be the best option considering every card has its own credit limit cap depending on the target audience.
You simply select whatever card company you want your new card from, get it and then you’re good. Or you can just get a new one from your existing creditor and as soon as it gets approved, you can have some of your new credit line relocated to the original one.
Make A Request Online
For this, you need to login to your credit card company’s website, open up the main menu from your account and then search for the option that asks for a higher credit limit. Then you’ll need to answer a couple of questions about your desired credit limit, expenses and income before submitting the request.
Call Up Your Card Issuer
A simpler way to get a pre-approved credit limit increase is to give your credit card company a direct call via the number that’s given at the back of your card. Ask the customer service department whether you’re eligible for an increase in your credit limit. They may ask you for a reason, even ask if your income has recently gone up.
More Credit Advice:
Do You Have To Have Good Credit To Apply For A Mortgage?
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Tips to Improve Your Credit Score Before You Buy a House