There is a specified credit limit available on a credit card for a person. This limit is the amount till which a bank will allow an individual to spend on his/her card. The cardholder will have to ensure that the total amount of use on the card does not exceed this figure. There are also times when one would like to see the available credit limit increased so that higher spends are possible. Here is the manner in which this can be achieved depending upon the situation.
Natural increase
Credit card issuing banks continuously monitor the extent of the use of a credit card along with the payment habit of the cardholder. One of the ways in which a good record is built up is by ensuring that the various dealings with respect to the card are handled properly. A responsible behaviour which means making regular payments along with the regular use of the card that is near the overall limit will be one factor that will be monitored. Once there is an adequate record the bank is likely to offer a higher credit limit to the cardholder. The rise might not be very high as compared to the previous limit but just enough to ensure that there is a higher amount available for the cardholder to spend on his/her card.
Supporting documents
Often there is a situation where the individual has had a significant rise in the salary or there might even be a shift of jobs, which results in a higher pay coming in. This will also require a higher use of the credit card for which a higher limit is required. A way in which a higher limit can then be availed from the issuing bank is by supplying it with the necessary details. This will enable the bank to evaluate the existing position of the cardholder and after seeing a rise in the level of the income the lender is likely to give a higher credit limit on the card. This will help one in using the card better and will also suit the changed conditions that are now applicable.
Change card
There are times when the existing limit on a credit card remains very low. This could be because the card was issued long ago or that a particular bank is assigning a low credit amount for the person. In such a situation, there might not be any significant rise in the limit even though there are efforts to convince the existing bank. Here, there is a better alternative available for you. This would consist of changing the credit card or even the bank issuing the card. This will involve applying for a new credit card with the necessary details to the bank. This will ensure that the new card is then taken on the basis of the latest information, which will also mean that the limit is likely to be higher for this card while the older card with the other bank can be cancelled and given back. Another route is to upgrade the card that is held by you. This will mean moving from a gold card to a platinum card and this is possible when you fulfill the required conditions. Both these steps will also ensure that there is no rise in the number of credit cards that are carried around but at the same time there is an effective use made of the limit and this has been revised upwards.
back to Credit Card Finance Charges
back to Credit Card Finance Charges
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