India recently witnessed an increase in cashless transactions by up to 55% as compared to last year. An increasing digital platform penetration has also led to a boost in credit card usage in the country, which continues to grow at a rate of 27%. The circulation of credit card has already exceeded 48.9 million according to data published by the Reserve Bank of India.
The rising usage of credit card must also be attributed to the easy availability of a suitable credit limit with a growing income. A higher limit is likely to increase your spending power and help you deal with your financial restrictions regarding needful expenses. Simultaneously, you can also handle emergencies in a convenient manner.
Most credit card issuers offer a higher limit to the customers based on their credibility and a decent credit score representing their creditworthiness. As a result, it is important to know how to increase credit card limit so that you can make the most out of your card while utilising it to other ends as well.
Tips to improve your credit card’s limit
The credit rating directly impacts the credibility of a customer. Also, a financial institution will be more willing to issue you a credit card if you hold a higher income and a decent credit score. Likewise, lenders can increase your credit card limit allowing you to make higher spends based on specific parameters. Utiise the following tips to ensure an easy availability of a higher credit limit on your card.
- Make timely bill and EMI payments
If you have an existing loan or credit card, make sure you pay the bills and EMIs in time before the due date. You can plan a budget for your monthly expenses, which will help you in keeping a balance between both.
As a result, you can pay out your credit card bills conveniently without putting a pressure on your regular finances. It will not only improve your credit score but also help you avail a higher limit on your card.
With this useful method of how to increase credit card limit, the following delves into restricting your debt quantum.
- Avoid too much debt at once
Too many outstanding balances can limits your repayment capacity. Make sure that you do not take too much debt at a time as it will not only be difficult to clear the dues in time but also restrict your capacity to avail any more debt if needed, such as increasing the credi card limit.
- Document any increase in income with your card issuer
An increase in income always fares well when looking forward to increase your crad’s credit limit as it enhances your repayment capacity. Thus, with such an increase, make sure to submit the required documents when requesting to increase your credit card limit.
Alongside, it is also essential that you choose the right credit card for yourself which offers other customised saving opportunities along with the required credit limit to help make your purchases exciting.
- Opt for a longer tenure on loans availed
You may also opt for a longer tenor when you avail a loan. It will reduce the monthly EMIs that you need to repay, and therefore, will let you pay the amount easily without ay defaults. Hence, timely payment will ultimately boost your credit score. This will, in turn, help increase your credit card limit.
Additionally, it is also important that you select a credit card that offers multiple payment options for easy repayment of the utilised credit.
For instance, the Bajaj Finserv RBL Bank SuperCard is a unique card that offers easy EMI conversion of the purchases made. The concerned card issuer also brings you pre-approved offers to make financing quick and hassle-free.
These offers are also available on other financial products such as personal loans, business loans, etc. You can take a look at your pre-approved offer by providing your name and contact number.
As individuals look for ways regarding how to increase credit card limit, these could be some of the effective solutions to do the same. If your income increases at any point, you are likely to get access to a higher limit on your credit card as it would represent an increased capability to repay the amount in time.