The credit card market in India is anticipated to maintain a healthy compounded annual growth rate of 25% between 2020 and 2025. Such growth estimation can be tracked down to the growing popularity of such cards, along with increased credit consciousness among Indians.
However, a limiting factor when spending through credit
cards is that they come with a pre-sanctioned amount of credit decided as per
the individual’s repayment capacity. Credit card users cannot cross this credit
limit when using such cards. Assessing how to increase credit card limits can help users adjust the initially approved spending
limit as per their needs.
Improving credit
card limit – Useful tips to follow
Credit card issuers reserve total discretion when it comes
to increasing customers’ card limits. When you will pay your credit card
payment on time its automatically increase the limit. Nevertheless, you can
encourage an increase by following some of the tips mentioned below –
● Take
measures that help build your credit rating
Financiers are always looking for creditworthy customers
to lend either via credit cards or through any other form of credit. If your
credit score has improved significantly after opting for the credit card in
question, the issuer may take note and approve of higher credit limits. The
basics of knowing how to
increase your credit card limits are to understand that your credit
score is intermingled with all of the terms on this card.
Keep in mind that you can use the credit card to improve
your credit score, while unplanned usage can also leave a dent in your credit
profile. Always try to understand your payment due date and statement generate
date so it can help you to pay your amount on time. All you need to do to
ensure a positive impact is service the card bills in time and in full. Also,
ensure that you clear EMIs from other loans in a timely manner.
● Keep
the credit utilization ratio in check
It can be tempting to use the entire available credit
limit while shopping, traveling, or making other purchases. However, doing so
can leave long-standing repercussions. Firstly, using up a majority of the
limit can hamper your credit score by indicating an excessive credit
dependency.
Additionally, it can reduce your chances of acquiring an
increased limit from the financier by reducing your repayment capacity.
Learning how to use a credit card wisely is thus the first step towards
ensuring increased availability of credit.
● Provide
proof of an increase in income
When looking for how to increase your credit card limit, among the best bets is to
show a significant increase in your monthly earnings. Financial institutions
consider the earning capacity of credit card users before determining the dues
they can afford to repay conveniently. Thus, if your monthly income has
increased since applying for the card, you can apply to increase the credit
limit with the new income documents.
● Reduce
your other liabilities
Individuals who apply for credit cards while they are
servicing additional loans may end up acquiring cards with limited spending
capabilities. Nevertheless, if your repayment requirements and all other fixed
dues are serviced, you can ask the card issuer to re-evaluate the limit. An
increased disposable income can help one avail an increased pre-sanctioned
limit on the card.
Keep in mind that access to a higher credit limit also
means access to increased amounts of emergency cash, which one can withdraw
from ATMs. Cards such as the Bajaj Finserv RBL Bank SuperCard provide up to 50
days of interest-free period for cash withdrawals to help meet such urgent
needs affordably. Additionally, this RBL credit card also
offers accelerated savings, with attractive reward points, and cashback.
read more: What Is CIBIL Score And Why Is It Important?
The issuer of the card also provides pre-approved offers
to reduce credit card application hassle and time-consumption. These offers are
available on a range of financial products, including personal loans and
business loans. You can check your pre-approved offer by submitting your full
name and phone number.
● Submit
an official request for a credit limit increase
Perhaps the simplest answer on how to increase credit card limit is to
actually apply for such an increase with your card issuer. Cardholders can
request the financial institution for higher sanctioned credit on their cards
after using that particular card for a year or two. Depending on your usage and
record of bill payment at that time, the card issuer will decide whether you
can handle an increased limit and respond to the request accordingly.
Fulfilling these requirements not only helps you spend
more using a credit card but also increases your overall creditworthiness and
it helps you to how you can use your credit card wisely. Thus, following some
of such measures can also be highly beneficial when you are opting for a new
credit card in the future.