In the search for more credit options and better conditions, people are accumulating credit cards. According to a survey, 29% have two or more cards.
If you fit this statistic and always create a new one to have more credit, it’s time to learn how to increase your card limit. Thus, it is possible to stay only with the one that offers the best conditions and organize yourself to have a raise available when you need it.
How to increase your credit card limit: 6 practical tips for you!
Before starting with the indications, it is important to understand what a credit card limit means.
In practice, it works like a short-term loan. The financial institution approves an amount and you can use it to make purchases. And when the invoice closes, you pay what you used from this “loan”.
Now that you know what it is, let’s go to the tips to increase your credit card limit:
1. Pay your bills on time
Since the credit card limit is a kind of loan, the institution will assess whether you are a good payer. After all, no one likes to lend to someone who doesn’t pay on time, right?
And, the way you show that you are trustworthy and deserve a higher limit is by paying your bills on time. This habit counts positively for your financial history and increases the CIBIL Score, used as a basis for evaluating your history.
2. Pay the full amount of the invoice and do not pay in installments
Do you know when they say don’t try to hug the world with your legs? This is more or less what you should keep in mind when asking for a credit card limit increase.
If you have an invoice of $2,000 and you only pay $1,000, the institution will understand that you, in fact, cannot have the entire current limit.
So be sure to pay your bill in full. In addition to avoiding paying the revolving interest on the card, one of the highest on the market, you don’t leave the institution with “the flea behind its ear” about its ability to pay for what you buy.
3. Make more credit card purchases
Show the institution that you want more limits because you are going to use them! That is, focus your purchases on your credit card and pay your bills on time. Thus, the institution will trust you and realize that it can give you more credit card limits.
Remember to focus on having a single credit card, which has better conditions, such as free annual fees and exemption from fees.
4. Perform financial transactions
It’s not just with your credit card that you will show your potential. Move the bank account through other features such as transfer, bill payment, etc. Thus, the institution gains confidence.
When choosing a credit card, be sure to evaluate the account that comes with it. Thus, it is possible to centralize your financial transactions and have even more benefits!
5. Update your income
When opening an account, it is normal to enter the monthly income. This amount will serve as a basis for the institution to release a credit limit. Right now, they still don’t know you or your financial life.
If, over time, there is any change in income, such as a salary increase or another source of income, update the information with the bank to show your new potential.
6. Avoid having more than one card
This point seems to repeat itself, doesn’t it? But, it makes sense!
Having multiple cards in your name can light up a red alert of financial disorganization in institutions. Not to mention that it can end up harming you when it comes to financial control.
Here is the tip you should choose a single card and work with it to increase the limit.
Kotak credit card: how to have the limit you want?
At Kotak, you have all the benefits you are looking for in a credit card! But more than that, you can have whatever limit you want! With one of the actions below, your limit automatically increases! After all, how is it? Understand:
Account Balance Reserve:
If you have money in your account, you can book from $300 and the same amount will be “copied” to the card limit. Just save the money and take advantage of the offer. To find out how to get a Kotak credit card, just click here.
Remembering that for those who already have a Kotak credit card, applying or reserving from $10, the amount will be added to the previous limit. That is, you can increase your credit card limit simply and quickly!
With the Kotak credit card, you have a number of advantages, such as no annual fee or extra fees. And, you can still choose the limit you want, just save part of your account balance.
But, of course, the benefits don’t end with the credit card! The Kotak digital account helps you organize finances for free! With it, you have:
- International card (credit, debit, account, or prepaid);
- RD Account: your money multiplies automatically;
- Online loans at cheaper rates.