The desire to buy branded goods is hindered because of a mediocre salary? Do not worry, now you can realize these desires only with a credit card. Now you can get your dream item in one swipe. Easy, practical, and fun, right? But transactions can only be processed if the credit card limit is sufficient.
If that isn’t enough, you should look for a replacement item option that is cheaper than the item you wanted at the beginning. Things like this will not happen again if you manage to increase the credit card limit. Interested? Here are some tips you can do.
1. Increase the use of credit cards Increase the use of credit cards
The more often credit cards are used, the greater the bills that must be paid every month. Even so, this method will only make it easier when you limit your credit card limit. Because, the transaction that you do indirectly benefits the issuing bank. When you want to increase the limit, it means that the number of your transactions will also increase so that the benefits of the bank will also increase. To increase the intensity of using credit cards, use credit cards more often than usual.
Use it to shop, pay monthly bills, buy credit, or pay lodging costs when traveling, so the number of credit card usage increases from time to time.
2. Have additional income
Before agreeing to increase the credit card limit, the bank will see your total income every month. Your salary will be used as a benchmark when paying credit card installments. Requests to increase credit card limits will be approved if the amount of income is sufficient or meets the criteria set by the bank. If not, don’t be hurt if your request is refused by the bank.
If your income does not meet the criteria, you can find a side job to supplement your monthly income. Save additional income in a savings account, so that the bank can make it into consideration when applying for re-raising the credit card limit in the coming years.
3. Make sure the credit card age above 1 year
Your loyalty as a customer can be measured by how long your credit card is used. If the age of using a credit card is more than 1 year, that means you are a loyal customer. Banks will find it easier to approve requests to increase credit card limits because you have been using these credit cards for quite a long time.
If the usage age is still less than 1 year, it’s better to undo your intention to increase the credit card limit. Most likely your request will be declined by the bank.
4. Pay bills before they are due
If you are interested in hoisting the credit card limit, make sure payment of bills is never late. Because, the request to increase the limit will be more difficult to be approved if the bank finds a history of bad credit.
Therefore, pay credit card bills before they are due. If necessary, pay bills earlier than usual to enhance your credit history. Early payments are also effective at reducing debt, so you can focus on paying other debts if you have them.
5. Fish with a new credit card
Do not be discouraged if the request to add a credit card limit is not approved by the bank, you can still apply for a new credit card at another issuing bank whose mechanism is much easier than adding a limit at the bank that issued the first credit card.
Even without being asked, the new issuing bank wants to add a credit card limit if you already have a previous credit card. If the limit given by the new issuing bank remains the same, it is better to find another issuing bank that may grant the request to increase the limit. There are still many banks that you can try, so don’t give up easily.
6. There are assets that can be used as collateral
To ensure that the credit status is not detrimental, the bank will ensure that you have valuable assets that can be used as collateral. If at any time you are unable to pay credit, at least the bank can take some of the assets you have to pay off the remaining debt.
Of course, banks will adjust asset prices with total credit card limits. If it turns out to be appropriate, then the bank must approve the application for adding the limit.
Understand the Negative Impact When the Limit Is Too Big
Before raising a credit card limit, first consider the negative impact on your financial condition. Do not let because you want to buy a lot of goods, you are actually wrapped in large piles of debt.
The limit is too big will also ‘tease you’ to keep shopping and swipe. So, whether you want big or small limits, it’s still wise to use a credit card.