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How to Request a Credit Limit for a Credit Card

One of the very first things to do when applying for a credit card with your bank (or when you accept prequalified offers from a credit card issuer) is to establish the credit limit of your card. In most cases, it is at the sole discretion of the credit card issuer to decide how much he will lend you. Fortunately, you can ask for an increase in your credit card limit after the first year or so, provided you don’t have any late or foregone payments. Alternatively, your credit card company may reward you with a higher limit on your credit card if you are a diligent payer. Here is a simple six step guide on how to get a higher credit card limit.

Step 1 – Look at Your Credit Score

The limit on your credit card depends on your credit score. It is only natural that credit card companies are willing to lend more money to people with good credit history. By the same token, if your credit score is rather low, it will be more difficult to get a high limit credit card. Citizens of the United States and Canada may obtain information about their credit scores from one of the major credit reporting agencies: TransUnion, Equifax or Experian.

Step 2 – Boost Your Chances for Getting Higher Limit

Even if your credit score isn’t very good and the credit limit on the card you were issued is in the range of 300 - 500 dollars, you may still apply for a higher limit. You will have a better chance if you use your card more often over a certain period of time. At the same time, make only reasonable purchases (you don’t need new designer shoes each month). Make sure you do not have any late or foregone payments.

Step 3 – Avoid Shopping Sprees

Keep your credit card spending in balance. If you are prone to reckless shopping sprees, you’d better leave your credit card at home. Use it for more important purchases that could be bought on equal monthly instalments with no interest. You have to show to your card issuer that you use your credit card in a responsible manner. Obviously, you don’t want to accumulate debt. In addition, some credit card issuers may charge you a penalty fee for using up all the credit on your card. Remember that debt is easy to build and very difficult to get out of.

Step 4 – Consider the Costs of Higher Limit

The application process is fairly simple and straightforward. In most cases, you will have to fill in a paper or online application form when you request a higher limit on your credit card. However, a higher credit card limit usually goes with higher annual subscription fee, shorter grace period, and higher cash withdrawal charges. The minimum monthly payments are also higher.

Step 5 – Providing Details about Your Income

Whenever you apply for a credit card, the issuer will inquire about the amount of money you earn per month. Individuals with high monthly income and good credit score are more likely to get a credit card with a high credit limit. Provide accurate information about your salary and other income that you have.

Step 6 – Consider Other Options

If you cannot obtain a credit card with higher limit, you may try to get several credit cards with low limits and affordable membership fees that will serve you just as well. Whatever the credit limit on your card is, you have use it wisely and responsibly or else you may find yourself in a serious credit trouble.