By default, your credit limit is set by the credit card company. The rate that is set actually determines how much money you can borrow. As a matter of fact, getting a credit limit increase makes you feel like you have won some lottery. This is because a higher credit limit means you can afford to buy more things without hurting your credit history. However, an increase in credit limit doesn’t just happen; you have to be creative to make it happen. Keep in mind that there are so many people that file for an increment, only for their petitions to be declined. Here is a list of creative ways of increasing your credit limit like a boss even when you are not yet one.
- Get a Credit Report
The surest way of knowing your credit status is by checking your credit report. The report is usually issued at least once per year by the credit reference bureau. However, you should be patient after requesting your report because it’s not printed instantly as you would expect. It takes about 20 days for it to be delivered into your mailbox and inbox. Getting your credit report helps you in knowing the debts that are yet to be cleared. Once you receive the report, you should review it thoroughly to confirm whether all the details are correct. In case you find some errors in the report, it’s advisable you communicate with the credit bureau immediately. The credit bureau will then ask for clarifications and evidence from the creditors that got you listed. If your creditors fail to submit the required information, the credit bureau will have no choice but to remove you from their list.
- Pay your Bills and Debts on Time
Paying your bills and debts on time has proved to be one of the surest ways of how to improve your credit score. This is because failing to pay your debts causes your credit score to decline. In case you didn’t know, the majority of credit card companies refer to your credit score when adjusting your credit limit. Even creditors will decline your loan requests when you have a poor credit score. By paying your debts before the deadline, you will create an impression that you can’ default in paying your loans because you are a responsible person. Besides that, you should try your best to exceed the minimum monthly repayment on your debts. This will convince the credit card company that you really deserve a credit limit increase.
- Cut back on your Spending
Most people exhaust their credit limit simply because they spend too much. In other words, they live beyond their means. If you are looking to get a credit limit boost, you should consider slashing your monthly expenses because that’s the only way of keeping tabs on your credit limit. For a start, you should create a budget that determines what you can buy in a week or a month. You can even use an app to track your spending. When the credit card company notices that you are not exceeding your limit, they will find it necessary to give you a higher limit. Lest you forget, they make money when you use your credit card more often so they will raise the limit to encourage you to spend more.
- Wait for Automatic Improvement
According to an article published by The Balance, most credit card companies review the credit limits of their customers every year. Those that are found to be loyal and consistent are usually rewarded with an increase in credit limit. But for you to qualify, you must have been using your credit card consistently for an extended duration of time. They will also consider you for an increment if your income has increased over the years. An increase in earnings gives the credit company the confidence to raise your loan limit because they are sure you will be able to clear your debt.