Recent data showed that the total active credit card users in India stands at 52 million and is expected to grow more than 25% by 2025. Due to various convenient features like reward programs, payment flexibility, and more, individuals are availing credit cards to fulfill their regular financial needs. A credit card thus comes as an ideal solution during an urgent liquidity crisis and serves as a helpful tool when one needs to make cashless transactions.
Further, to obtain funds during emergencies, it is essential to be aware of your credit card’s limit so that you can utilize it accordingly. Although it totally depends on the financial institution and your eligibility criteria, individuals should still know how to increase credit card limits to enjoy flexible utility, such as online transactions or cash withdrawal.
Know about your credit card’s limit
During a credit card application procedure, financial institutions ascertain details like income and repayment capacity of an applicant based on which they approve a credit limit to a customer. Other factors that contribute to its determination are age, existing debt, employment status, etc.
While looking for how to increase credit card limits, you should also be aware of two other important factors, which are your credit history and credit score. Holding a poor credit score will reduce your chances of receiving approval for your card’s required credit limit. Contrarily, if you meet all these set criteria, you can expect to easily maximize fund availability that can be used with your card.
How to increase the credit card limit?
Once the credit card gets issued, individuals mainly focus on the ways it can be utilized. However, knowing how to use a credit card wisely should rather be prioritized from the very beginning. It saves you from reckless spending, helps you manage your expenses better, and even allows you to prepare for a credit card loan in the future. An increased credit limit only allows you to fulfill these requirements easily.
Following are some ways you can increase your credit card’s limit:
- Submit income documents to the financial institution: Every care issuer has certain eligibility criteria where the income proof has to be provided for the desired credit limit. Therefore, if your salary or any other income has increased, you can let them know about it with documented proof so that your card’s limit gets extended.
- Keep using your card: Even though it is important to keep a check on your expenditure, using your credit card adequately explains that you are able to maintain the monthly payments, which further builds good credit history.
- Pay bills in time: As a responsible cardholder, paying your credit card bills in time is necessary. It not only helps in extending your card’s limit but also helps improve your credit score. It can be one of the effective solutions for how to increase credit card limits with a suitable payment record.
- Request a credit limit extension: You can also request the card provider to increase your card’s credit limit and submit the required documents to provide them with a suitable reason for such extension. You can thus directly visit the issuer’s branch to discuss your requirements.
Getting an extension on your credit card limit may not be that easy since there are so many parameters customers need to meet for that. It totally depends on how efficiently a cardholder maintains the payment tool along with his/her repayment capacity.
Further, various card providers also extend a range of cards to help customers pick a suitable one that matches their needs. For instance, the Bajaj Finserv RBL Bank SuperCard ensures that customers get to benefit from its reward programs, robust security features, and multiple other user-friendly facilities.
The card provider also extends pre-approved offers to make financing convenient and less time-consuming. These offers are available on various financial products like credit cards, personal loans, business loans, etc. You can easily check your pre-approved offer by submitting essential contact details.
From looking for ways to increase the credit limit to tips for paying down credit card debt, individuals often find themselves juggling for a balance between these two. Therefore, it is advisable to research beforehand and choose the appropriate card option that suits your financial needs while keeping the bills within your repayment capacity.
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