How to Increase Credit Limit on Credit Card?
A credit card brings unbelievable comfort to our lives, eliminating the anxious wait of payday. With it, you can make any payments, including on the Internet, you can forget about the many months of saving money on vacation, just buy all the necessary things now, and pay later! All that limits you in this situation is the limit provided for your loan. If you received the card for the first time, the limit on it is probably quite small, so you should think about how to increase it…
Factors contributing to the increase in credit limit
Salary increase: If you provide the lender with a certificate confirming this fact, you may well expect an increase in the limit.
Transfer to another job: If you have moved to a higher, for example, managerial position, this can also make a positive impression on the lender.
Real estate: The presence of real estate property always makes the right impression.
However, all of the above is only proof of your solvency, and solvency is not a guarantee that you will be a responsible payer. Therefore, more important factors that can help you with an increase in credit limit are:
- Positive credit history
- No delinquency
- Timely repayment of previous loans
Some people think that the lack of loans is a positive characteristic, but it is from loan payments that the credit history is formed, and when it is absent, it is no better than the history of debts and delinquencies, so try to shape your image of a responsible borrower in advance.
How to raise the credit limit?
The bank can independently increase your credit limit, this happens quite rarely, however, if the lender understands that you are a responsible payer and have been working with him for quite a long time, and he may well decide to raise the limit as an incentive for a client. The same is true of increasing your income because a larger credit limit allows you to spend more money.
If you want to increase your own credit limit on the card, you still have to contact the lender with the help of a statement in which you express your desire and its main reason. Such statements are considered within thirty days, after which the bank will notify you of its decision.
What will happen to the card after changing the conditions?
Most often, when the credit limit on the card changes, the card itself does not change, but it all depends on the particular bank. Many banks, along with changes in credit criteria, change the card to show a particular situation of the customer, but sometimes the re-payment is due to changes in the terms of the loan contract that previously resulted between the lender and the debtor.
The most popular method, which has already been mentioned above, is the establishment of a limit based on the assessment of the borrower’s parameters, such as financial position, the ability to service the assumed obligations, the stability of the client and the availability of collateral.