Before you apply for an increase in your credit limit, first ask yourself why you want a boost in your credit. If it is to feed your thirst for shopping or purchase luxuries you don’t need, then you should not pursue it. You will need to justify the bank and yourself that you know how to manage finances before they approve your request.
This means you have an excellent record of credit payments for at least half a year. If your credit cards are maxed out, this only proves that you are always late in paying your balances. This usually leads to lenders rejecting your application. With these in mind, here are some ways your credit limit will be allowed to increase your credit limit.
Avail New Credit Card With Higher Limit
Usually, the best option for getting a higher credit limit is to get a credit card because every card has its own credit limit depending on its demographic. You have the option on which credit card organization to apply or you can always opt for your existing credit lender.
Once you are approved, distribute parts of your new credit card to the one you initially needed to be boosted. Yes, this is possible as long as you already have a credit score that is above average.
Choose A Card To Request An Increase
Pick a credit card you already have that you want the limit to be increased. Never assume that asking all your credit card providers will approve of your request. Upon asking for a credit increase, the lender will assess your credit score to determine if you are worthy of the increase your credit limit.
The inquiry will be reflected on your credit report and will slightly decrease your FICO score. If multiple lenders are doing a hard inquiry on your credit report, it will significantly decrease your score. It will also allow the lenders to see the other issuers who are assessing you as well. This will tell them that you are desperate to have money. This is a red flag to the views of lending companies and can easily get you rejected. Always remember that banks like to lend people who are not desperate for money.
Don’t Be Desperate
If you frequently call and beg your lender that you really need money and think that they will sympathize with you, then you are wrong. Never tell them that you really need the money, instead tell them why you need that increase your credit limit. Tell them that you have been a consistent client and have always paid your debts on time. You could also reason with them that you always pay more than the required balance every month.
If you recently had an increase, inform them. Lastly, always remember to show them that you are a kind person both upfront and on the phone. Lenders are just doing their work, so never show them that you are frustrated or desperate. Yelling or cursing at them will never help your application.
Tease Them With A Balance Transfer
All banks love having balance transfers. A balance transfer simply means you are passing some of your balances to another credit card. Balance transfers are a great deal since most lenders today provide 0% interest rates on transfers that last for a year or longer.
This is a wise move when you are managing your financial stability and can save you thousands of money. If you tell your current lender that you will need to increase your credit limit to do a balance transfer, they will typically approve your application since the will assume that you are trustworthy in making the payments.