Davos-2022
Davos-2022
Davos-2022
Davos-2022
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5 ways to increase your credit card limit

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A credit card can be a great financial instrument for users to manage day-to-day expenses and receive multiple benefits in the form of rewards and cashback.

5 ways to increase your credit card limit
A credit card can be a great financial instrument for users to manage day-to-day expenses and receive multiple benefits in the form of rewards and cashback. However, every card comes with a usage limit. Users may find themselves in a tight spot as their expenses ramp up over time.
In such a case, they can consider increasing the credit card limit. The credit limit is basically the maximum amount users can spend using their credit cards. Customers can request their bank to increase the credit limit, which can be approved based on multiple factors like profile of the person, credit track record and CIBIL rating.
Here are the steps to follow to get the request approved:
Pay most of the expenses using credit card
According to Anuj Kacker, CO- founder, MoneyTap, users can boost their chances of approval by paying most of the expenses through their credit card. This acts as proof that reflects the importance of credit cards in managing most of the daily expenses.
Repay dues on time
Credit card limits can be enhanced through an efficient and good track record. According to S Ravi, Former Chairman of BSE, Managing Partner of Ravi Rajan & Co, the card issuer evaluates the risk appetite of the user by assessing the ability of the cardholder to pay. Users should, hence, make it a practice to repay all the dues on time.
Maintain a good credit score
Credit card limits vary person to person and even card to card, depending on multiple factors.
According to CRED, credit score is important as the successful use of the card by timely repayment of dues, consistency in bill payments and healthy utilization of credit might be analyzed by the bank. Hence being financially responsible and maintaining a healthy credit score can aid in increasing the credit card limit.
Update the lender about improvements in financial status
The earning potential is one of the most important factor that the banks consider while determining the credit limit. So, customers should keep the banks updated in case of an increase in income.
“For instance, users may have been promoted to a senior position with a salary uptick. In such cases, users should let banks know their eligibility for a hike in the credit limit,” suggests Kacker.
Get a new credit card
The easiest way of increasing the limit is by getting a new credit card that offers a higher credit limit. It enhances the credit limit unless users haven't defaulted and repaid dues on time.
Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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