One of the vital aspects of a credit card is its credit limit. Credit limit is the maximum amount you may spend using your credit card without being charged a fee or penalty. Credit limit varies depending on the type of credit card you are using and a multitude of factors such as your annual income, employment status, and credit history. However, the credit limit on your card is not fixed and can be raised, allowing you to use your card to better suit your needs and wants. Here are seven smart tips on raising your credit card limit:
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1. Improve your Credit Score
Since your credit limit heavily depends on your credit score, you must focus on enhancing it by managing your existing credit card. Make sure you never default on monthly installments, pay bills on time, and clear outstanding debt, if any.
2. Make Timely Payments
In order to convince the credit card issuing authority to raise your credit limit, it is crucial to clear your credit dues on time. If possible, try to clear future bills in full before the due date. Doing this will help you showcase your trustworthiness and ability to manage your credit cards well.
3. Use the Card Regularly
By using your card on a regular basis – even for everyday expenses like groceries and dining out – you become a better, more valued customer to the credit card issuer, prompting it to automatically increase the credit limit on your card.
4. Furnish Proof of Additional Income
Your credit limit is largely determined by your earning potential and by implication, ability to repay your dues. If your salary has increased or you have found an alternative source of income – a freelance project, a part-time job, an investment that is giving high returns – submit proof of the same to the bank to convince them you are capable of making larger repayments comfortably.
5. Raise a Direct Request
You could directly approach your bank or credit issuing authority with a request to increase the credit limit on your current card. Most banks will grant such a request, provided it is supported by facts and figures such as a history of regular, timely repayments and a low credit utilization ratio. Avoid sharing stories of your financial woes with bank authorities, expecting them to empathize and increase your credit card limit.
Increasing the credit limit on your card comes with several benefits such as access to a wider host of benefits and a lower credit utilization ratio. When you get a credit card, it is important to get one that is right for your profile and needs. Indus Easy Credit credit cards by IndusInd Bank are based on your individual profile to optimize your savings and maximize your rewards. Besides, this instant credit card has an online application procedure, making it easy for you to apply anytime, anywhere. Get easy credit from IndusInd Bank today!
