A lot has changed in the last few years. This statement holds good in the case of items of daily use. Of late. credit cards have emerged as a very important part of the lives of a large section of the global population. An individual credit card user’s purchasing power is limited to his bank balance, income, and last but not the least, the credit limit of his or her credit card. Although there is a strict credit limit on a credit card, yet there are ways you can increase the credit limit of your credit card.
1: Boost Your Credit Score
Your credit card limit depends on your credit score in a major way. Consequently, increasing your credit score is key to increasing your credit card limit. Your credit is very similar to being a yardstick of your performance as a credit card user. Your creditworthiness increases greatly if you have paid all your monthly installments on time and have never been a defaulter. Therefore, you plan on improving your credit score by making use of your credit card to pay the bills which you receive on a monthly basis. This will signify to your concerned credit card bureau that you are a very regular card user who uses his or her credit card to pay his or her monthly recurring bills and that you need a higher limit.
2: Repay dues on time
It is of vital importance that you maintain perfect punctuality in paying off your dues. This will show the credit bureau that you do not delay repayments and act as a message to the credit bureau to increase your credit limit. In case you have any pending dues from the past, ensure that you clear them on a priority basis. Secondly, you can plan meticulously to pay off your current dues before their stipulated due date.
3: Be careful about the Credit Utilization Ratio
The Credit Utilization Ratio is the percentage of the available credit limit you are using out of the total credit limit made available to you by the credit bureau. According to financial experts, you should plan to keep your credit utilization ratio at 30%.