Today credit card is an important plastic currency that comes up with several amazing features and advantages. Using a credit card is beneficial over the hard cash or debit card. When you hold a credit card, you can easily make purchases and avail services and pay the expenditures later. In order to enjoy the use of the credit card, it is necessary that your card provides enough credit facility. If the limit is low, it is necessary to know how to increase your credit card limit. Along with this, it is necessary to know when you should apply for the limit.
We know that every bank or non-banking financial company provide a limit of credit on the credit card. This limit is based on certain factors and you should know before applying for the limit enhancement. Some of the important factors include – credit score, applicant’s income and current financial obligations. Here is a guide on how to increase your credit card limit.
Automatic credit limit enhancement: Most of the time, banks and NBFCs increase the credit limit when reviewing the profile of the cardholder every 6 to 12 months.
Ask for credit limit increase: You can send a written application to the credit card issuer to increase the limit.
Increase usages: When you frequently use the credit card to make purchases, financial institute are more likely to increase the limit. For this, ensure that you make timely payments.
Maximise credit score: When you have a good credit score, a credit card provider increases the limit with time.
