Simple Tips to Increase your Credit Card Limit

Posted by Arwind Sharma on September 5th, 2018

Your credit card company sets a credit limit on your card for maximum utilisation. You can’t use it for any further transaction if you have already utilised that limit. Hence, a higher credit limit is always beneficial for you.

Financial companies usually give you a low credit limit when you first apply for a credit card. However, you can increase your credit limit with proper usage of the card and on-time payments of the outstanding bills.

Ways to increase credit limit:

You can follow these steps for raising your credit card limit.

Repay existing loans

Your card issuing company checks for any financial liability that you may have before increasing the card limit. Try to repay any loans you have in the upcoming months. Show the papers to your card issuer once you’re done repaying your loans completely. These are liabilities that you cut down, and it helps you to increase your credit limit.

Present your increased salary slip

Lending institutions look actively for cardholders who have an increased income. You can present your current salary slip if it has improved considerably since your last IT returns filing. You can request the company to offer you a surge in credit limit on this basis.

Use your credit card while travelling abroad

Credit card companies prefer that you use the card more often when you go abroad. If you travel frequently, you can request them to increase your credit limit. There are many companies which offer exciting proposals on travelling and gives huge bonuses on travel bookings. Some cards also offer free lounge services in many airports. Availing this service will help save your money to a large extent.

Use the other credit card with a higher credit limit

If you have another credit card that has a higher limit, use it. It becomes your leverage to elevate the credit limit of this card.

Imbibe a financial discipline

Paying credit dues timely reflects your fiscal discipline. Hence, your card issuer may consider increasing the credit limit once they see that you are committed to paying your dues on time.

Perks of higher credit limit

Low credit limit utilisation

If your card has a high credit limit, the limit’s utilisation lowers automatically even after meeting all regular expenditures. The best credit card companies prefer a low credit limit utilisation ratio, preferably standing at 30-60%.

Improves credit score

A low credit limit utilisation implies that you have a desirable credit utilisation ratio. Hence, your CIBIL score automatically increases when you play by the rules. This, in turn, helps you to avail loans easily in the future.

Don’t need multiple cards

Once you are able to increase your credit limit, you can purchase many products and avail multiple services from one card. Also, you are relieved of the hassle to meet the credit card eligibility criteria for different cards.

More reward points

A credit card having a high credit limit comes with greater reward points, cashbacks, and more exciting offers and discounts.

Hence, go for the best credit card if you want to reap the maximum benefits of a higher credit limit. It’ll help you save money and avail financial products like loans more comfortably in the long run.

You can also avail pre-approved offers for credit cards, home loans, business loans, personal loans along with other financial products and services. Check the pre-approved offers by giving some of your basic details. It is a simplified process of availing a loan that saves your time considerably.