Know how to Increase Credit Limit

Tips for getting a credit limit increase without having to apply:

• Pay your bill on time
• If possible, pay the full amount of your account
• Use only part of your credit limit
• Keep your income up to date with the credit card company
• Keep your account open for at least six months

It feels great to get a credit limit increase, it almost feels like getting a promotion or raise at work.

Whether you’re new to having a credit card or are in the process of rebuilding your credit, an increase in your available credit is a turning point in your credit history. This shows that you are a responsible and trustworthy customer.

In addition, a higher credit limit can greatly improve your purchasing power in addition to several other advantages that come with a positive impact on your credit score, while maintaining a healthy credit utilization rate.

One important fact you should know about your credit card is that thirty percent of your credit score from the three major credit bureaus is calculated based on your level of debt.

In other words, your credit usage or the amount of credit available is a big part of your credit score. high.

Requesting for a credit limit increase can damage my score?

Yes, sometimes when you apply for an increase in your line of credit it will negatively affect your credit score.

Just like when you apply for a credit card, when you ask for an increase in your credit you will have your score analyzed and damaged depending on the type of consultation.

How to get an automatic credit limit increase

Your credit limit may also be automatically increased by some credit card issuers. This increase will be facilitated if you achieve benchmarks that indicate that you are a trusted customer. You can indicate this by keeping a low credit utilization rate and making your monthly payments consistently.

Many banks review their customers’ accounts periodically and grant an automatic limit increase as their goal is to help you build credit and help you qualify for better options. Strong credit is good for both the credit card issuer and the customer.

So, it might be better not to ask for a raise but to wait for an automatic review.

Ask your credit card issuer directly

On the other hand, some credit card issuers only increase your credit limit if you ask for it.

There are two ways to do this:

• Calling your credit card issuer: Begin the inquiry process by calling the toll-free number provided by your credit card issuer. They will usually provide instructions for you to increase your credit during the call, if not just wait and speak to a human representative and ask for an increase.

• Request online: Many issuers let you apply for a credit limit increase online. Just log into your account and look for the option related to credit limit increase.

You will be asked for additional information, such as the amount of credit limit increase you want and why you want it, and monthly income.