Top 5 Ideas To Improve Your Credit Card Limit
Having a low CIBIL score reduces the chances of availing advances. Thus, you should maintain a good credit score to secure faster approvals of such credits. One of the essential ways to increase your CIBIL score is to use your credit card within the credit limit.
A credit card limit is the maximum line of credit offered to you by the credit card issuer.
Consider using a credit card app to keep track of your purchases and limits.
You can also make use of the below-mentioned steps to increase your credit card limit if required.
- Consider your income
If you have a considerable salary, your credit card lender may issue a card with a higher limit. Besides, it will also depend on your repayment capabilities, CIBIL score, and credit history.
- Maintain a good credit score
As mentioned, if you use your card within the credit card limit, it will have a positive impact on your CIBIL score.
With a higher credit score, the chances of extending your credit card limit increases.
Hence, you should maintain a CIBIL score of 750 or above to get a higher credit usage limit.
- Make timely payments
Make sure you pay your credit card bill within the grace period to avoid the accumulation of debt.
Timely payments will also have an impact on your credit history, depending on which the chances of availing a credit card with a higher limit will increase.
Use the online loan app for a credit card to keep track of your bill payment due date and grace period.
Also, make sure you use your credit card frequently with a habit of paying your bills on time.
With frequent uses and timely repayments, you become a trusted consumer, which increases the chances of availing a card with higher limits.
You can use the credit card reward points earned for specific transactions.
With these reward points, you can avail discounts and offers on your next purchase that will help in lowering your bill and help to make timely payments.
You can use your credit card app to check your reward points and use them as and when needed.
- Know your debt-to-income ratio
Having a low debt-to-income suggests that you are capable enough to repay your monthly debts smoothly.
While you issue a credit card, your debt-to-income rate will have an impact on your chances of availing a card with a higher limit.
Financial institutions and NBFCs prefer applicants who have maintained the 40% debt-to-income ratio.
- Maintain the card utilization ratio
Consider using your credit card till 50% of the available limit. Doing so will not only reduce the strain on your pocket and but will also help you avoid further charges.
You can make use of the credit card app developed by your lender to keep track of your transactions.
There are several financial institutions and NBFCs that offer such apps to help the customers; Bajaj Finserv is one of them.
This NBFC provides the Experia app to track your transactions, payments, lodge complaints or raise requests, etc.
They also offer online account access, instant approval, personal loan apps, prolonged tenor, and other lucrative benefits.
Bajaj Finserv also brings pre-approved offers on credit cards as well as on numerous other financial products and services such as home loans, personal loans, business loans, etc.
You can take a look at your pre-approved offer by sharing your name and contact number.
You can download Bajaj Finserv App directly from either Play Store or the App Store and keep track of all your credits.
With such apps, you also get a reminder before your payment due date arrives so that you never fail to repay on time.
In addition to the above, you can avail of a new credit card with higher limits.
However, the issuing of such cards will depend on your credit history, income, and repayment capability.
Category: Credit Card
