Do you want to boost your credit limit? Go ahead! The best way to be eligible for a higher limit is to maintain a high credit score. Issuers usually review credit card accounts every 6 months. If you’re already keeping a good score and credit behaviour, your card issuer may naturally increase your credit card limit.
If you haven’t received a periodic increase, here are the top 5 ways to get a credit limit hike in 2021.
#1 – Use your credit card consistently
Once you apply for a credit card, ensure to keep using it to facilitate all kinds of transactions.
This can help increase your credit card limit in the following ways:
· Your account won’t be closed which would else affect your credit score. Only a good score can get you an increased credit limit.
· As long as you use your card, pay all your dues in full on time to establish good credit behaviour. Use this tip if you were also wondering how to increase your credit score. As a result, your card issuer can trust you with a higher credit limit.
#2 – Provide your income statement
Suppose your income has recently increased. On the other hand, you’re still using the old credit card.
Then you can do the following to boost your credit limit:
· Approach the card issuer with your latest salary slips.
· Request for a card upgrade with an increase in the credit card limit.
#3 – Request to increase the limit on an existing credit card
You can make a decent request to your credit card issuer to raise the limit on an existing card.
To show that you deserve a higher credit limit, see if you can back your request with good reasons like:
· You’ve been a loyal customer for more than 6 months.
· You pay your dues in full or pay more than the minimum balance every month.
· You have a reliable loan repayment history.
· You’ve built a high credit score.
· Your income has just increased.
You can also tell your card issuer that you need an increase in your credit card limit for a balance transfer. Your request will likely be granted if you satisfy the above conditions.
#4 – Increase your security deposit
Have you been using a secured credit card? Then here is how you can readily increase the credit card limit:
· Try to pay more towards your security deposit.
· If you can pay so, call the card issuer and take the steps you’re asked to follow.
#5 – Apply for a new credit card with a higher limit
Consider applying for a new card with a higher credit limit than that of your current card.
You’ll likely get approved for the new card if:
· You have a decent credit history.
· You have a high credit score.
· Your income has recently increased.
If you have a lot of accumulated dues, wait to clear them before requesting a credit line increase. Then your credit score would improve and even a hard inquiry into your credit report won’t impact the score much.