How do I increase the credit limit on my credit card?

The increased credit limit on a credit card is immensely beneficial for card users. If you can do so, you will have more availability of credit to work with. Your card issuer can give you higher credit limit than you may know. This can have a great impact on your credit score as you may lower ratio of credit utilisation. Higher credit card limit can also increase your spending power from the card. To finance your purchases, you need more line of credit. In this blog, here are some tips that can help you increase the credit limit on your credit card.

1. Reduce the debt balance

Reducing your debt balance is an outstanding way of increasing your credit limit. Your debt is also one of the major reasons behind the low credit limit. If the debt is lower, the bank will consider increasing your credit line as it loves to pay those who do not need it. Make sure you do not use up your credit line if you wish to increase your credit limit. Pay off your debts and outstanding balance to boost your credit score. Any of the unpaid balance with any other bank must be paid off to improve the credit report. Lower balances will be updated in the least possible time to improve your credit score. Pay the credit card bill timely to demonstrate reliability. Once you have cleared all your bills, it will take a few months to increase credit card limit.

2. Directly request your card issuer for an increase

After you have paid all your debts, it is time to ask the credit card issuer to increase your credit card’s limit. Call your representative directly rather than contacting him online or better, meet him personally. To convince your representative to increase the credit limit, you may state reasons such as your household expenses have increased in the past few months. But, be ready for a tough enquiry as any request for an increase in credit line will give lenders to make a tough enquiry on the credit history.

3. Transfer your credit line from card to card

Some of the card issuers can also allow you to transfer the credit line from one particular card to another. By doing so, you get more spending power and can use that card which features a good reward. At times it happens that you are unable to utilise good reward credit card simply because the credit line is not enough. Credit line transfer can help you a lot if you want to use airline credit card, for instance, for your business travel expenses.

4. Apply for a new card

If your card issuer is unwilling to increase the line of credit, you may apply for a credit card from another issuer. As a result, you will get a line of credit at the beginning and receive a sign-up bonus at the same time. But, if you want to increase the line of credit on your existing card, you must pay all your outstanding balances. After doing so, wait for some time and then apply for new credit.Click on this link: https://www.paisabazaar.com/credit-card/

5. Use charge card

The difference between a charge and credit card is that there is no spending limit as such on a charge card but there is spending limit on a credit card. In charge card, your credit worthiness remains higher, and so the line of credit can be increased.

6. Spend less from your credit card

The fact that you have more spending power from the card does not mean you will exhaust your credit card. If you spend less from your credit card, your credit score will improve. So, the higher your credit, the better will be your chances of increasing your credit limit on your credit card.Test your credit score: https://www.cibil.com/creditscore/

7. Be patient and wait for an automatic increment

Waiting for the credit line to increase all by itself is the easiest way to increase the credit limit. The issuers assess the credit cards to find if the line of credit can be increased. If you have healthy spending habits, your credit limit will automatically increase.

You may adopt any of the 4-5 ways mentioned on the top to enhance your credit limit on the credit card. Among all, transferring card limits is an ideal way of boosting your card’s credit limit.