There are plenty of benefits to using a credit card. Not only will you have access to funds which can be repaid later, it can also be used to improve your credit score. While the credit score is an important factor in the long run, when using your credit card, your credit limit plays an important role. A higher limit means high expenditures. With a low or free interest period, you can make multiple transactions which can benefit you.
So how can you take measures to increase a higher spending limit? Given below are a few suggestions that can assist you.
Avoid requesting too soon or for too much
Most credit card lenders incorporate a system wherein your credit is reviewed after a fixed period of time. However, if your lenders do no incorporate this system, you will need to contact your lender and request an increase. However, this request must be conservative and must be done at most after six months on receiving your credit card. When you issue a request, your lender will most probably review your expenditures and card usage. Based on their review, they will increase the credit limit at the discretion of the company’s regulation. Be prepared to get an increase of 10 to 12%. By chance of your request gets rejected, you must wait for 3 to 4 months before placing another request again.
Wait for an automatic increase
The best way to get an increase in your credit limit is to wait for your lender to increase it automatically. In this way, you are not required to do anything. As a part of their service, most credit card lenders periodically review customer accounts, to determine if they should get an increase. Once the lender deems your eligibility, you will automatically get a hike. The fastest way to get this automatic increase is to ensure that your account has a relatively low limit. A credit card with a higher limit is less likely to get a hike as compared to a lower limit.
Use your credit card frequently
The best way to grab the attention of your lender when it comes to increasing your credit limit is by using your card on a regular basis. Additionally, you will also need to pay back the funds on a regular basis. One way to do so is by using your card for a single high expenditure, and pay it back for several months in a row. Spending funds in this manner will indicate that you require more funds, wherein which you can handle it. Alternatively, you can limit your cash expenditures whenever possible and use your credit card. You can use the cash to pay off the balance within the billing cycle. In this way, not only will you build your limit, but also your credit score at the same time.