Depending on how financially sound you are, availing a higher a higher credit limit on your online credit card can either be good or bad for you!
If you see no issues with clearing your credit card bills each month in full, it could be a good idea. Yes, it will then give you more flexibility and also help improve your CIBIL or Credit Scores by lowering credit utilization ratio.
On the other hand, if you are not a responsible credit card manager and if you often overspend, your Credit Score will worsen by a higher credit limit.
In the same context, let’s help you with some easy methods that will help you get a higher limit on your best credit card!
Easy options for availing a higher credit limit
- Go and request it online
Majority of online credit card issuers let their cardholders to ask or apply for a higher limit online! You can sign into your account, and look for an option if any to submit it. You may have to update your income information if you have recently got a raise. Having a higher credit limit is an indication of having good financial security, a crucial element that lender evaluates while approving or rejecting your request.
- Give a buzz to your card issuer
You can also call the customer service wing of your credit card company and inquire if you are eligible for a raise or not yet! You may also place a request for which you may be given a reference number! You can get in touch with them after a while or some days to know the status of your request.
- Keep your eyes open for an automatic increase
Some of the leading banks and non-banking finance companies (NBFCs) also give their cardholders an automatic increase if they have been using it responsibly. Thus, keep checking your credit limit to know if you got an increase or not!
- Apply for a new card
Even if your existing credit card company is not increasing your credit limit despite having managed a good repayment history, you can always apply for a new card with a higher limit. Yes, sometimes, your overall credit card limit may not be allowed owing to some technical issues, applying for a new credit card is not a bad idea. Why? Even if you could not get a higher credit limit, your overall credit limit will at least improve!
How a higher credit card limit may benefit you
If you have managed your credit card payments well in the past and always pay the bills on time in full by the due date, it could boost your Credit Score by keeping the utilization low. Having a low credit utilization is a positive sign that you are living within your means. On the other hand, high utilization means the opposite.
The Bottom Line
Availing a higher credit limit is not all a bad idea if you have a good repayment history as you know that you can easily handle it. Now that you are well aware of the methods to grab a higher online credit card limit, it would be good to apply it online or as per the discussed methods.
However, one thing that even the prudent of the cardholders do not do is – asking themselves – do they really need a higher credit limit or is it just for the sake of it? Think it over, and then only apply! All the best!