The credit card limit is the maximum amount that one can use. When one begins the credit card apply process, steps can be taken to increase the credit card limit. To know more about the options available, you can check the link https://www.sc.com/in/credit-cards/.
Below we also list some of the key ways to increase the credit card limit. Check these out and benefit from the same.
1. Use the Card Responsibly
When the credit card apply process is initiated, one should bear in mind that the card should be used responsibly. The credit card issuing company keeps a tab on the usage of the card and people who use it responsibly are often rewarded with an increase in the credit limits. Whenever any amount is borrowed on the card, the user should ensure that the same is repaid timely. The files of new credit card users are often reviewed every six months. People who have flawed on making the payments in time will see that using a credit card often gets difficult for time with time. Thus, using the credit card responsibly is a viable way of ensuring an increase in credit limits.
2. Reduce the Debt to Credit Ratio
The credit utilization ratio also depends upon the debt that the card shows. The credit card apply process also entails that one should keep the debt to credit ratio in check. People who are big spenders with some high debt to credit ratio will often find the credit score nose-diving all the time. Such people are often considered risky proponents by the banks and financial institutions. Such people often find that their credit card limit rarely increases beyond a point. The golden rule here is to cut down on the debt to credit ratio and keep it in check to be a good customer and get some viable credit card limit increase. The thumb rule is to keep this debt to credit ratio below 30%. This will definitely increase the credit score.
Intelligent planning also helps in increasing credit card limits. Source: financebuzz.com
3. Request for a Higher Limit
After six months of credit card apply process has been put in place and the card is operational, a formal request can be made to raise the credit limit to the bank. If this request for raising the credit limit is made before six months of the card getting operational, the request is likely to be rejected. While pitching in the application, convincing the bank is also important. The customer can point that he or she will be associated with the bank for long and thus should be put on the priority list. The aspect of good credit score and little personal liabilities can also be taken into account and shared with the bank. The idea is to convince the bank that the user is a responsible customer. In all likelihood, on being convinced the bank is likely to raise the credit limit.
4. Transferring of Limits between the Cards
To propel the credit card limit, the users can also apply for a new card and move the credit line from one card to the other. However, both these cards should be from the same bank. However, managing multiple cards could be an issue but if one is a responsible user, the bank will have little concern in raising the credit card limit.
Before one seeks to obtain a higher credit limit, it should be carefully thought about and the priorities should be put in place. In case, the bank finds that the customer fulfills all the conditions, it will have little doubt in increasing the credit card limits.