How to Improve Your Credit Card Limit?

Posted on Monday, April 24th, 2023 | By Indusind Bank

Your credit card limit is the maximum amount of credit extended to you by the issuing bank. It’s important to have a credit card limit that meets your financial needs, as it determines how much you can spend on your card. If you’re looking to improve your credit card limit, here are some tips to consider: 

1. Maintain a good credit score 

Determining your creditworthiness is largely dependent on your credit score. A higher credit score indicates that you are a responsible borrower who pays their bills on time and uses credit responsibly. Banks and credit cards issuers prefer customers with good credit scores as they are considered low-risk borrowers. 

If you have a good credit score, you are more likely to be offered a higher credit limit. On the other hand, if you have a poor credit score, you may struggle to get a higher credit limit, and your existing limit may even be lowered. To maintain a good credit score, it’s imperative to pay your bills on time, minimize credit utilization, and steer clear of avoidable debts. 

2. Request a credit limit increase 

If you’ve been using your credit card responsibly for some time, you can request a credit limit increase from your card issuer. Most card issuers have an online portal or a customer service hotline where you can request a credit limit increase. Before you request a limit increase, make sure you’ve been using your card regularly and paying your bills on time. 

When you request a credit limit increase, your card issuer will review your credit score, income, and payment history to determine if you qualify for an increase. If you meet the criteria, your credit limit may be increased immediately. However, if your request is denied, you can try again in a few months or consider other options. 
 

3. Increase your income 

If you have a low credit limit, one way to improve it is by increasing your income. This could mean getting a new job or starting a side hustle. By increasing your income, you can demonstrate to your card issuer that you have the financial capacity to handle a higher credit limit. 

When you apply for a credit limit increase, your income will be a crucial factor in determining whether you qualify. Therefore, if you’re planning to request a credit limit increase, make sure you can provide proof of your income. 

4. Use your card responsibly 

Using your credit cards responsibly is essential to maintain a good credit score and improve your credit limit. This means paying your bills on time, keeping your credit utilization low, and avoiding unnecessary debt. If you’re using your card frequently but making timely payments and avoiding overspending, your card issuer is more likely to consider increasing your credit limit. 

On the other hand, if you’re regularly maxing out your card or missing payments, your card issuer may view you as a high-risk borrower and lower your credit limit. Therefore, it’s important to use your card responsibly and avoid unnecessary debt. 

5. Consider a balance transfer 

If you’re struggling to keep up with your credit card payments, a balance transfer can help you consolidate your debts and improve your credit limit. A balance transfer involves moving your credit card balance to a new card with a lower interest rate and better terms. 

When you transfer your balance, you can reduce your interest charges and pay off your debts faster. This can help you improve your credit score and qualify for a higher credit limit in the future. 

In conclusion, improving your credit card limit requires responsible credit card usage, maintaining a good credit score, and demonstrating financial stability. If you’re looking to increase your credit limit, consider requesting a limit increase, increasing your income, using your card responsibly, and consolidating your debts with a balance transfer. Incorporating these tips can aid in boosting your credit card limit. 

If you’re looking for a credit card that encompasses all the benefits and rewards to match your lifestyle, check our offerings and you’ll definitely find your ideal pick. IndusInd Bank offers a range of lifetime free credit cards that enable you to enjoy exquisite privileges and help save more with reward points that never expire.   

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.