If you want to increase the credit card limit, then try these 4 easy steps, know what the experts say
Jitendra Solanki, SEBI Certified Investment Advisor, says that if a user spends more than his credit card, then his card limit is more likely to increase. This shows that the user needs more money because his expense ratio is higher.
Taking a credit card is a great way for the user to manage his day-to-day expenses and enjoy the benefits of reward points, cashback. However, every card has a limit. Due to the increase in the cost over time, many times the limit has to be increased. Customers can request their bank to increase the credit limit, which is done after taking into account a number of factors such as the profile of the individual, credit track record and CIBIL rating. So let's know how the credit card limit can be increased.
Jitendra Solanki, a SEBI certified investment advisor, says, “If a user spends more than his credit card, then his card limit is more likely to increase. This shows that the user needs more money as his expense ratio is higher.
Pay dues on time
The credit card limit can be increased through a better and good track record, says Solanki. The card issuer assesses the risk appetite of the user by assessing the cardholder's ability to pay. Therefore, the user should try to clear all the dues on time.
Investment advisor Jitendra Solanki says to maintain a good credit score. However, card limit limits vary, even from card to card. He said that credit score is important because timely payment of dues, consistency in bill payments and mode of credit can be analyzed by the bank. Hence being financially responsible and maintaining a healthy credit score can help in increasing the credit card limit.
Jitendra Solanki, SEBI Certified Investment Advisor says that the easiest way to increase the limit is to get a new credit card, which gives a higher credit limit. It increases the credit limit till the users default and the dues are not paid on time.