Do you know how to raise the credit card limit for your card? More than providing you with a higher amount of credit, it also improves your credit score, increasing the scope for future borrowings.
However, is there any limit to how many times and how often you can increase the limit for your credit card? Here is the answer to this question.
How Often Can You Increase Your Card Limit?
Depending on how good your credit score is, you can request that the issuer increase your credit limit every 6 to 12 months. This doesn’t apply if you have just opened your credit card account. In this case, it’s best to wait at least a year to see if you can get an annual increase.
Furthermore, if you have multiple credit cards with the same issuer, avoid applying for a higher limit on all cards simultaneously. When you get a raise on your credit card limit, your credit score will take a temporary hit due to hard inquiries. Since it takes some time to increase your credit score, waiting 6 months or more is an ideal timeline to apply for a credit limit increase.
Why Should You Apply for It?
There are various benefits you get to enjoy with a higher credit limit. Considering that, here are some of the best reasons to apply.
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You have access to a higher credit amount, allowing you to manage cash flow seamlessly
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It allows you to handle financial emergencies without the hassle of arranging funds or going through a lengthy loan application process
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It improves your credit score as your credit utilisation ratio decreases
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With a better credit score, you can easily get approval for your future borrowing
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You can manage your regular purchases comfortably, even if you have used to card for big-ticket expenses
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You can earn higher rewards with a higher limit
However, you should avoid applying for a credit limit boost if:
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You have just applied for or received a credit card or a loan
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You have recently missed the due date for credit card bill payment
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You have a history of poor credit management and defaults
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You have used the maximum limit on your credit card
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You got a boost just before 6 months
Why Your Request May Get Declined
Here are some possible reasons why you may not get a higher limit on your credit card.
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You have missed the last date of bill payment in the past 12 months
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You have a high outstanding balance on one or more of your credit cards
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You have recently opened a new credit card account
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You have too many credit card accounts
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You have a low income to meet the eligibility criteria
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You recently got a boost on a credit card
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You have a low credit score
How to Increase Credit Card Limit
Check out these simple tips if you plan to enhance your card limit.
Direct Request
By maintaining a good credit history and an optimal score, you can ask your issuer to increase your credit limit. In most cases, the issuer will boost your limit annually. If you haven’t received it yet, you should contact your issuer personally.
Improve Your Credit Score
Your creditworthiness is a crucial factor in determining your credit limit. Improving your credit score will allow issuers to offer you a higher credit limit. The easiest way to do this is to use your credit card for everyday purchases and pay the bill on time.
Make a Valid Request
When requesting to increase the credit limit, provide the issuer proof of good credit score, high income, low utilisation ratio, etc. You should also be reasonable with your request and not ask for a huge increase. Why? Issuers may see this as a red flag, increasing the odds of rejection.
Get a New Credit Card
If you have reached the maximum limit for your credit card, leverage your good score to get a credit card with a better limit.
By keeping these points in mind, you can leverage the opportunities to increase your credit limit or choose the right alternative. This allows you to enjoy better credit health and gain access to the maximum funds. If you decide to get a credit card instead of opting for a higher limit, consider applying for the One Credit Card.
This is a smart metal credit card equipped with some of the best features and offers maximum perks on transactions. You can get up to 5X reward points every month in your top two spending categories. Simply redeem these reward points anytime without worrying about the expiration date or redemption cost, as there aren’t any.
In addition, you can enjoy great offers, discounts, cashback, and more from partners. No-cost EMI, zero annual and joining fees, and a powerful app to track your expenses are some other benefits that allow you to spend confidently. Apply online to get started on your One Credit Card journey.
