Credit card limit: Credit cards have made both people’s lives and expenses easier. Companies and banks offer you to increase the limit continuously, but when should the credit limit be increased?
In this rapidly changing lifestyle, credit cards have become more than just pieces of plastic. Credit card has emerged as a big ally in emergency. There is often a confusion among credit card users whether they should keep their credit limit fixed or increase the limit from time to time to meet their increasing expenses. If it should be increased, what would be the best time for it? Let us answer these questions.
Income and Credit Score
If you have recently received a salary increase or are expecting a salary increase soon, you may want to consider increasing your credit limit. This is the right time to increase the credit card limit. More income often means more spending, and a higher credit limit can help keep things in balance. Therefore, think of increasing your credit limit only when your salary or income increases.
The limit is being crossed again and again
If you find that you are regularly exceeding your credit card limit, you may want to consider increasing the limit. You can request your credit card issuing company to increase the limit. The company will decide on increasing the credit limit considering your transaction history, credit score and income.
Decide carefully
Increasing your credit card limit is a big step that should be considered carefully and thoughtfully. By understanding your financial situation, you can increase the limit on your credit card relationship while remaining financially savvy.
Benefits of increasing credit card limit
- Reduces your credit utilization.
- Helps in obtaining loans and additional credit.
- Helps in emergency situations.
- Helps you get more reward points.
- You are able to make big purchases easily.
- Meets the need of money in times of crisis.
