Raising Your Credit Card Limit
This moment, I mean at this stage of life we all live in, it doesn’t matter if you are an American, European or even African, there are some moment when the need for credit will knock your door, even top billionaire in the world also experience this at some point in their life.
A normal credit card limit is the maximum amount of credit that a card issuer will extend to a cardholder. And there are a number of factors that go into determining credit limits, including credit scores, credit history, income, and debt levels.
Be noted that card issuers will also consider the type of credit card being applied for, as well as the applicant’s stated purpose for using the credit card. In general, credit card limits range from a few hundred dollars to several thousand dollars.
And of course, some cards may have higher or lower limits depending on the issuing bank’s policies. Credit card limits are not set in stone. If you have a good credit score and history with your credit card issuer, you may be able to request a credit limit increase.
What exactly is a credit limit?
To make it simple and straight, this is the maximum amount you can spend up to on a credit card or an authorised overdraft.
What is Credit cards
Normally, whenever you apply for a credit card, you won’t initailly know what the credit limit will be, although you might be told what the maximum limit is for new customers, but not common.
In addition, you surely of course might only be told what your credit limit is when your application is successful.
And in some case, this can be a real problem. This is because you might only find out your credit limit when a full search has been carried out, which leaves a mark on your credit file.
Let’s take for instance, if you want to transfer an existing balance to take advantage of a 0% deal but your new credit limit is too small to do so, you might be disappointed.
Just incase, the credit limit matters to you, ask the card provider what it will be before you apply and before you sign the credit agreement.
Then the card provider should be able to give you an idea of how much you’re likely to be offered. But they might need to do a credit check before they can confirm the exact amount.
Now, are you shopping around for a credit card and not yet ready to apply? Then make this clear and ask the lender for a ‘quotation search’ or ‘soft search credit check’, so a mark isn’t left on your credit file. But not all lenders will provide this service.
Here’s How:
1. First of all, take out a home improvement loan. Most people don’t know that home improvement loans can actually be used to raise your credit card limit. Here’s how it works: home improvement loans are usually unsecured, which means they’re not backed by any collateral.
Then as a result, home improvement lenders are often willing to lend more money than other types of lenders. And since home improvement loans are typically used for home repairs or renovations, they tend to have lower interest rates than other types of loans. So if you’re looking to raise your credit card limit, a home improvement loan may be the way to go. Just make sure you shop around for the best rates and terms before you apply.
2. Secondly try to call your credit card issuer’s customer service number and ask to speak with someone about increasing your credit limit.
3. Then explain why you feel you deserve an increased credit limit. Some reasons may include having a low credit utilization ratio, making all of your payments on time, or having a history of responsible credit use.
4. Also be prepared to provide information about your income and employment status, as well as your current credit situation.
5. If approved, your new credit limit should take effect within a few days.
Conclusion
We have lot of ways you can raise your credit card limit. One way is to contact your credit card company and ask for a credit limit increase. You may be asked to provide information about your income and expenses, and you may need to undergo a credit check. If you have a good credit history, you should be able to get a credit limit increase without much difficulty.
And other way to raise your credit card limit is to use your credit card more frequently. If you consistently make on-time payments and keep your balance low, your credit card company may be willing to raise your credit limit. Finally, you can also open new credit accounts to increase your overall credit limit.
We are sure that with you taking these steps, you should be able to raise your credit card limit and enjoy the benefits of having more available credit.
Other fact is that any credit limits can also go down for a number of reasons. If you frequently carry a balance on your credit card, your credit issuer may lower your credit limit in order to reduce the amount of risk they are exposed to.
To add to the above facts, incase you make a late payment or your credit score drops for any reason, your credit limit may be lowered as well. So, incase you think your credit limit has been lowered unfairly, you can always contact your credit issuer and ask for an explanation. In most cases, they will be happy to provide one and it’s going to help.
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