Having an increased limit in your credit card may help you in many ways. Not only you have sufficient cash available with you to spend, it may also improve your credit score by reducing your credit utilization ratio. So, if you know how to you utilize your credit limit wisely and have a habit controlled spending, an increased credit limit can really help you. But, if you have the habit of spending up to the maximum limit of your credit limit, no matter how high the credit limit is, you are going to miss these benefits.
So, how do you increase credit limit in your credit card? Credit limit increase may happen in two ways – either banks or credit card providers offer unsolicited credit to credit card holders or credit cardholder apply for an increased credit limit.
Tips to increase credit limit in your credit card
There are a number of tips that you can really help you increase credit limit in your credit card in Malaysia. Mentioned below are the tips by using which you can have your credit limit increased
- Keep your credit rating good:
- Pay bills on time:
- Lower your credit utilization:
- Avoid requesting for credit limit frequently:
- Avoid asking too much credit:
- Wait for an automatic increase:
- Use your credit card regularly:
It’s always important you keep a track of your credit score and maintain a good credit record by paying all your secured and unsecured debts on time. This will help you improve your credit rating, which will in turn facilitate the process of receiving extra credit. Banks and other credit card provider often consider the credit rating of an individual before increasing his/her credit card limits.
It’s important you pay your credit card bills on time in order to build trust and improve your credit rating. Delaying your bill payments may bring down your credit score and bank would stop trusting you. In that case, even if you apply for an increased credit, you may not receive.
Try to curb or lower your credit utilization. It helps you earn more credits. Besides, if you have multiple credit cards, then transfer debit from one car to another to manage credit utilization. For example, if you have two credit cards- one has higher credit limit and the other has lower limit. In that case, shift debt from the credit card providing lower limit to the one offering higher credit limit. This will help of you balance your credit utilization ratio in both the cards.
Don’t request for increasing credit limit before 6 months of receiving a new credit card. You may be denied credits. Repeated request for increasing credit limit may create an impression that you are overburdened with debt and your credit application may be rejected.
Also, you should avoid asking too much credit at one go. Be a little conservative and request for an amount that you actually deserve. You should not request to double of your existing credit limit.
Another way of increasing your credit limit is to sit idle and wait for an automatic increase by your credit card provider. Usually credit card providers review your credit cards after six months and based on your credit utilization may offer extra credits. You would automatically receive an increase, provided your credit provider thinks you deserve it. Having lower credit limit may help you earn extra credits. But, if you already have a higher limit, the possibility of receiving extra credit is less.
Another easiest way to increase credit limit in your credit card is to use your credit card frequently and pay your bill on time. If you continue to do so, your credit card provider will be convinced that you not only need extra credits, you can also manage it responsibly. So, stop using your cash to paying for things and services. Rather, use your credit cards to pay for them and use the cash to pay for your credit card balance.
Thus, if you follow the above-mentioned tips, the chances are there that your application for credit limit will be accepted by your credit card provider. A well maintained credit card always has better chances of receiving extra credits.