Everyone dreams of having a credit card that has a high credit limit. It’s because it offers excellent benefits and not just more bargaining power. A more upper credit limit can bolster one’s FICO credit score. It thus makes it easy to finance any major purchases, such as buying a home or an automobile at low-interest rates as well as better terms. Are you seeking to get a higher credit limit on your credit card? Here are some simple tips on how you can increase your credit limit.
- Wait for the credit limit increase
Patience is an excellent virtue that you can choose to exercise while owning a credit card. Many credit card lenders generally will have the credit card limit every six to 12 months, depending on their terms of service. All you can do is what takes place in due course.
Nonetheless, to enhance your chances of getting a higher limit, you must establish a positive payment history. If you lack a credible credit history, you can click here to obtain more info on how a credit card can build a credit history.
After that, you can acquire a credit card and begin making timely payments to assure the credit card lender that you are trustworthy. It will also show them that you’ve become responsible and can pay balances even when the credit limit is higher.
- Ask to increase our credit limit
Do you have a credit card in excellent standing, which you use daily? You can make a call to the phone number listed on the back of the card. Get a chance to interact with the customer service desk or pay a visit to the credit card provider’s website to request the credit limit increase.
To consider your credit limit increase plea, the company will have to look at some fundamental factors. First, you will have a look at the overall condition of your credit report.
Second, they will have a look at your total annual income.
Third, they’ll check your most recent credit card spending as well as the overall debt to income ratio.
Lastly, the company will dig deeper into your payment history on the card.
These four factors will determine the fate of your application request. It’s a fast process to get a higher limit.
However, it comes with severe consequences. It might result in a hard inquiry on one’s credit history, which could lower a person’s credit score in the short run.
- Open a new credit card account
Another option worth considering is opening a completely new credit card account. It’s an excellent choice if you are tired waiting around for the credit card issuer to increase your limit. It’s also worth considering if your credit limit request got denied. Only apply for a new credit card if you can handle the extra spending power diligently.
However, opening a new account might temporarily lower your total credit score as the credit card issuer might have a hard inquiry on your credit history. You ought to click here to get more info about opening a new credit card account as you implement the above steps to increase your credit limit.
