Get More Financial Freedom: Increase Your Credit Limit

Every credit card has a limit that you suppose never to exceed. Even if you apply for a card that is considered to have no credit limit, mind “no limit” is just an ad promise. If you are a holder of American Express or Visa with no limit, credit bureaus take your highest balance as the limit on the card.
You must know, credit limit is not only the highest sum of money you can borrow on your credit card. Credit limit also indicates the ratio of your monthly expenses to the total amount of credit. In turn, this ratio influences your credit score.
The amount of your debt that is over your credit limit determines 30% of your credit points. That means, the more credit cards with the debt very close to the limit you have, the lower your credit score is. And everyone knows that the lower your score is the less chances you have to get a beneficial credit card offer. So, try never to overdraw your credit limit. If you manage to keep within your limits and never exceed your credit line more than by 25%, you are sure to establish strong credit history and reach high credit score.
If your credit limit is too small for you now, try to increase it. Few people take pains to improve the situation when it concerns credit limit. Many consumers believe that they will likely get a refusal in case they ask their credit card companies to increase the credit line. Some of customers have no idea about an opportunity to increase the credit limit. That is why lots of Americans have a credit limit about $300 – 500 that is sure to limit their financial opportunities.
You may say that the credit limit around $500 is quite enough for you now and you do not see any need in increasing your credit line. What for? Well, there is one more reason to ask for a higher credit limit. High credit score. Just think, having increased your credit limit you will raise your credit score. And the higher your credit score is the more chances you have to get best credit cards with cash back or low interest rates, no annual fee credit cards, or a car loan and a mortgage with the most beneficial terms.
So, contact your creditor and ask for a higher credit line. You can say that you do not want your credit score falls down every time you are close to your credit limit. Try to convince the creditor that you are long-term customer who is going to establish good credit history. Explain that you are not going to use the total amount of credit and the increase of credit limit is only technical necessity. You bank are sure to consider your request and you will be approved for a higher credit limit.
So, if you are striving for more financial freedom, take pains to increase your credit limit in order to raise your credit score.