Increase Your Credit Limit on Your Credit Card

All credit cards come with a credit limit. This is often pegged to your credit worthiness as well as your monthly pay. A higher credit limit will allow you to purchase that expensive toy/ring that you have been eyeing. However beware of the temptation to over-spend, as the interest rates on the credit card is always waiting for you. With great power comes great responsibility..

Tips for Raising Credit Limit

In order to up your credit limit, the first thing to do is to increase your credit worthiness. Basically you must be able to prove to the banks that you are a trustworthy borrower and that they do not have to worry about non-payments from you. This is one of the key things that banks or lenders look out for when they check out your credit report.

You can let the banks know that you are a responsible credit card user by informing them when you are making a very large purchase, which is beyond your usual credit limit. You can request for a temporary credit limit increase and after purchasing the item, you would want to be able to pay for it by month's end. This will demonstrate to the banks that you need a higher credit limit and that you are able to pay for it easily.

Once you prove to the bank or credit card company that you can be trusted to borrow money, they may raise your line of credit. This strategy is useful but you are likely to have to call them a number of times before they will realize that you have a need for higher limit. A good way to let them know is by telling them that you would like to have a higher limit and ask the customer service officer to check your history. They will likely accede to your request if you have been paying off those purchases on time.

Another great way to get that credit limit increase is to use your credit card at every chance possible. This will show the bank that you are a loyal customer to the bank and you can even inform the customer service officer that you use their credit card exclusively. The credit card that you use for this purpose should be a low interest credit card, otherwise you may face compounding interest in a very fast manner.

Paying on time and paying the entire amount is always desired. You want to show that you can afford the type of large purchases that the banks liked in their credit card customers. If you follow the above tips, you will get your credit limit raised higher. Once you have the higher credit limit, you must be careful about over-spending as the temptation and ability to buy the latest gadget have grown stronger. Just remember the credit card interest rate has not gone down.