How To Raise Your Credit Card Limit

When you first got your credit card, your credit limit may have been fairly low. This means that you may only charge a certain amount on your card, including fees, balance transfers from other cards, and cash advances, as well as the purchases you make. A low credit limit may restrict the kinds of purchases you can make, and you may want to raise this limit. Here are some ways you can accomplish this goal.

Improve Your Credit Worthiness
You need to work on improving your perceived worthiness to borrow money from your bank. Your credit score shows lenders what kind of credit risk you are for them, and tells banks whether or not you are trustworthy and able to handle credit responsibly.
The easiest way to build your credit worthiness, and thus raise the amount of your line of credit, is to put everything you buy on your credit card. Don't save your card for emergencies. Your credit card company wants to see that you have the ability to spend wisely and to pay back the amount you credit to your card. If you rarely use the card, the company will wonder why you would need a higher credit limit.
Make Timely Payments on the Balance Due
The second best way to improve your credit limit is to pay as much as possible on your outstanding balance every month and pay them on time. If you can, make every attempt to pay the entire amount; in any case, always pay more than the minimum required. By doing this, you will demonstrate to the credit card company that you are striving to improve your credit rating. You'll be showing them that you do deserve a higher credit level.

Provide Proof of Income
Some credit cards may require proof of income before they will grant you a higher credit limit. With others, you may find their website has an online feature with which you can request a raise in credit limit. If you use this feature judiciously, not more often than every four or five months, you may be able to increase your line of credit. Other companies will automatically extend your credit limit if they see you are spending up to your current limit - and paying it back regularly. That last phrase is most important!

Benefits of an Increased Credit Limit
If your credit card company does raise the limit on your credit, it means that you have shown them they can trust you as a borrower of their money. You should realize, however, that a higher credit level may incur more fees, as well as increased interest charges. Be very careful as you begin to operate within a higher limit, to make sure interest rates don't spiral out of your comfort zone.

There are plenty of websites on the Internet that offer tips on using your credit wisely and carefully. You may wish to look at some of these to increase your understanding of how credit works, and how you can protect your own credit rating. Keep in mind that granting you increased credit is the way your bank expresses its confidence in you as a borrower -- and be sure you are worthy of that confidence.

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