Tips to Increase Your Credit Limit

Tips to Increase Your Credit Limit

Credit limit increases are beneficial to you in more ways than one. Not only do you have more available credit to work with, but raises in your credit limit can also improve your credit score by lowering your credit utilization ratio. Follow these Tips to Increase Your Credit Limit. Pay your bill on time for at least 6 months. Of course, you should always pay your credit card bills on time, as late payments could result in credit limit (and credit score) decreases. Six months is simply the minimum amount of time you will have to make timely payments on your account before creditors will even consider raising your credit card limit.

Lower your credit utilization. Your credit utilization is pretty much how much money you have on your credit card compared to your overall limit.For example, if you have $4,900 worth of debt on a card that has a $5,000 limit, your credit utilization is extremely high. If, on the other hand, you have $300 worth of debt on a card that has a limit of $5,000, your credit utilization is extremely low. A low credit utilization is what you want.

If you have multiple credit cards, don’t be hesitant to move debt from one card to another in order to massage your credit utilization. If one card has a higher limit, for example, move debt onto that card and off the card with the lower limit. Do this so that both credit utilization ratios more or less balance out.

Shoot for a credit utilization rate (debt to limit ratio) of about 10%. A 10% credit utilization rate is ideal, however, so if you happen to have a rate of 20%, or even 30%, that’s okay. Your credit utilization is 30% of your credit score, which itself is a factor in getting a limit increase. Read More

Tips to Increase Your Credit Limit

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If you aren’t happy with your credit limit, you can request a higher limit from the credit card provider.
However, it is a good idea to wait for several months first so that the lender can see that you are a sensible customer.

Of course, if you exceed the limit on your card or miss any payments, the credit card company or bank won’t agree. Not only that, but you’ll damage your credit rating, which may stop you getting a better credit deal elsewhere.

Equifax Credit Check – Get Your Credit Check Now – equifax.co.uk‎


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