Are you tired of maximizing your credit limit each month? Yeah, me too. Don’t worry though. In today’s blog, we are going to remove that fear of maximizing your credit card by talking about ways you can increase your credit limit. Before we get into how to increase your credit limit, here are some benefits of having a higher credit limit.
1). More purchasing power
The more you have, the more you can do with what you have. This holds true for your credit balance. When you have a higher credit limit, you’re able to make bigger or more frequent purchases that you wouldn’t otherwise be able to make with a lower credit limit. Keep in mind that your credit utilization ratio is still a factor.
2). More future capital
Having a higher credit limit is basically the banks lending you more money. When you have more money and prove to the banks that you’re able to manage more money, they won’t see it as a liability to give you more capital. This builds trustworthiness between the two participants (you and the bank).
Now, let’s get into how you can increase your credit limit.
1). Build a reputation
I am basically piggybacking off the above paragraph titled “More future capital”. When you first apply for a credit card, the banks will not automatically start you off with a huge lump sum of $50,000 as your credit limit (maybe in your dreams). They’re going to lend you a couple hundred to see how you manage your money. This is where you must build a good reputation, showing the banks that you can manage your expenses and pay them back conveniently. You must start small. If you can’t manage a $500 credit limit, you surely won’t be able to manage a $50,000 credit limit.
2). Simply request a credit limit
After you’ve proved to the banks you can manage expenses and have built rapport, you’re now able to increase your credit limit. You can do this by simply requesting a credit limit increase. Simple right? don’t overthink the process. If the banks can trust you, they won’t mind lending you more money. Therefore, if you haven’t worked through the first step of this process, you’ll more than likely get denied an increase of capital. You can simply submit a request to your bank to increase your credit limit either online or in person.
We hope this blog served you well. Apluscredituniversity is excited to be able to serve you in some way. If you have any questions don’t be afraid to contact us!