Increasing your Credit Card limit: Quick tips and benefits 

The heart always wants more, and with so many desirable products and services in the market, the want is justified too. A credit card can be your saviour when your heart is set on something you want or need, but your bank balance does not support you The credit card can enable you to go beyond your spending capacity and pay back the amount in easy and convenient repayment options.

However, every card comes with a cap on the amount of money you can spend through it. This is known as the credit card limit. This limit can differ for different people based on factors like age, income, credit score, and more. However, there are some ways to increase your credit limit if you feel yours is low. 

Let’s take a look at the tips and benefits of increasing the credit limit, so you can go about enjoying the things you deserve. Here are tips you can try:

Request for an increase in the credit limit

One of the simplest ways to increase your credit limit is simply asking for it. This can be ideal if you have a pressing financial need and require a higher limit immediately. Most credit card providers are quick to enhance the credit limit without any issues. As long as you have a steady income and have been diligent in paying your due in the past, the card issuer should not have a problem considering your request. The only thing that could not work in your favour is if you have a low credit score and have been inconsistent with your debt settlements in the past. You can take a look at your credit history and approach the bank for a higher limit accordingly. 

Use your card often

The more you use your card, the more opportunities you have to show the bank how responsible you are with money. Making regular payments through your credit card and making sure to clear your bill on time sets a good example in front of the credit card provider. This helps you in two ways. Firstly, the bank is willing to increase your credit limit as they can identify you as a reliable customer. In fact, many banks may automatically increase your limit if you have given consent for the same at the time of application. Secondly, the more you use your card, the more you can benefit from cashback, rewards, and more. For instance, Metra Trust’s Credit Cards offer several privileges on transactions made through the cards, including buy-one-get-one offers on movie tickets, up to 20% discount at over 1500+ restaurants, fuel surcharge waiver of 1%, and more. Thus, using the card can help you save money and eventually get you a better limit.

Improve your credit score and be consistent with your payments

A credit score is a three-digit number calculated out of 900 that determines your capacity and ability to pay back debt. The higher the score, the better it is. It is crucial to monitor your credit score regularly when you use a credit card or have a pending loan to your name. Your score will likely go down if you fail to pay your bills on time or often end up missing deadlines. Moreover, if you have multiple credit cards and loans at the same time, they will negatively reflect on your score. 

It helps to keep an eye on your credit score and find ways to maintain a favourable figure. You can do this by limiting your debt. If you already have loans, make sure you settle them in time as per the planned EMI (Equated Monthly Instalment) schedule. This will help you build your case and create a good impression for all lenders in the future, making it easier to get a higher limit. 

Do not max out your credit card limit

This may sound confusing. Using your credit card as much as you can is good as it gives you a chance to create a good credit score and show your trustworthiness. However, maxing it can go against you. If you max out your monthly limit, the bank will note that you have a high credit utilisation ratio. In other words, this echoes your dependability on your credit card and that you are unable to cover your expenses with your income alone. Having a high credit utilisation ratio makes you an unfavourable candidate for a card with a higher credit limit.

Instead, use your credit limit up to 30% to 50% of its capacity. Some months may be challenging, and you may need to use more of your card. Sometimes, unexpected expenses can crop up, and you may have more expenditures than anticipated. However, if that happens, try to balance it out over the next few months.

Share your income proof

If you have received a salary hike, you can share your new income statement with the credit card provider. A higher income indicates more liquidity and instils better confidence in the lender. They are more likely to increase your credit limit once they know you are doing well financially. 

Benefits of increasing your credit card limit

Here are some benefits of increasing the credit card limit,

1. Better loans

Increasing your credit limit improves your credit score. The bank is much more likely to offer you loans with a high credit score. This lets you manage your expenditure better in the long run and helps you get good deals on consumer, home, car, personal, or student loans at a later time in your life. 

2. Increased liquidity

The higher the limit, the more money you have access to. This way, you can plan major expenses like electronics, furniture, travel, and more with your credit card. A higher credit card limit means you never have to postpone your purchases. It enables you to live life to the fullest and enjoy the things you want. 

3. Peace of mind

Irrespective of whether you use your credit card or not, the knowledge of a higher credit limit can offer you peace of mind. When you have a high limit credit card, you can be confident to deal with an emergency like a medical expense, car or home repairs, and more. This cuts out unwanted stress from your life. 

4. Better perks

A high credit limit can also get access to a higher variant of credit card in some banks. And an upgrade in credit card can be accompanied by luxurious perks like airport lounge access, railway lounge access, spa and golf discounts, and more. For instance, the Metra Trust’s Wealth Credit Card offers two complimentary golf rounds every month. 

These tips and benefits can help you unlock the full potential of using a credit card. They can also help you be financially prepared for an emergency and go through life making the most of it. A high credit card limit can be essential in many situations. Moreover, it can also be a sign of success. Above all, it makes you financially secure and helps you build a good credit score that can be beneficial in many ways. So, do not hold yourself back and try these ways to up your credit card limit.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.