How to Get Out of Credit Card Debt | Real Simple

A credit card with a low credit limit can be very constricting and, in a way, defeats the whole point of having one. The entire purpose of different types of credit cards is to give you financial freedom. So, if your card isn’t allowing you to fulfill your purchase aspirations, it might be time to learn how to increase your credit card limit.

Here are five expert tips on how to get your limit enhanced.

1.   Improve Your Credit Score

Your credit card benefits are dependent on your credit score. The higher the score, the more the benefits. This is because a good credit history helps banks perceive you as a low-risk customer. There are some easy ways to improve your credit score. Make sure you pay all your credit card bills and other loan repayments on time. Maintain the minimum balance required in your bank account. Basically, make sure you don’t default on any payments.

2.   Make Regular Transactions and Pay Back on Time

Using your card on a more regular basis makes you a much more valued customer to the issuer. Besides, making timely repayments helps inspire confidence in your commitment to not default. Once you gain your financer’s trust, the chances of getting your credit card limit increased become higher.

3.   Request for an Increase in Your Credit Limit

Another way to go about it is to put in a personal request to your card issuer, asking for a credit limit enhancement. Sometimes, the financier’s algorithm might fail to suggest an automatic limit increase. In such cases, you can put in a direct request with the bank manager and get your limit boosted.

4.   Apply for a New Card

You can also consider applying for a new card if you are facing trouble getting your limit increased on your current card. Besides, it is advisable to look for a card that is most suited to your needs, so check the different types of credit cards by doing a comparison between them. However, before you go ahead with applying for a new card, make sure that your credit score is in the healthy zone.

5.   Keep Your Credit Utilisation Ratio Low

Sometimes, to get a higher credit limit, you may have to keep your card utilisation low. Credit utilisation is the amount of credit that you use out of your total limit. If you maintain a low credit utilisation ratio, it tells your financier that you aren’t credit hungry and thus, can be trusted with a higher limit.

Having a card with the right credit limit is very important to achieving your financial goals. A credit card with a higher limit becomes even more important since it enables you to avail of benefits like greater financial freedom, higher rewards, travel insurance, etc. Therefore, check your credit limit and ensure that it meets your requirements.

By Richard