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8 Reasons to Increase your Credit Card Limit

Transactions using credit cards are a common phenomenon in everyday life. For those who do not have a credit card apply now to access numerous benefits. A credit card has many characteristic features, one of which is the credit limit. Credit limit refers to the maximum amount extended to the credit card cardholder. A higher credit limit may commonly imply to the cardholder that he can spend a substantial amount before paying it back later. However, it is not the case or at least not at all the only side of the scenario. If one realizes the other benefits and advantages of a high credit limit, one would consider keeping it that way.

Reasons for Increasing Credit Card Limit

Against all the common notions, keeping a higher credit limit can be of great advantage to you.

Lowering Credit Utilisation Ratio

Credit Utilisation Ratio refers to the ratio of the total credit used by the cardholder to the total credit amount extended to the cardholder by the lender. It is generally recommended to spend around 30% or even less than that of the credit limit. Doing so will not hamper your credit score. The reason behind this is that if you use a greater percentage of the credit limit, the lender may consider you to be facing difficulty in paying the full amount. If the credit limit is increased and the percentage of it is maintained within 30%, access to a larger sum of money will be possible without hampering the credit score.

One Card for All Credit Expenditure

Higher credit limit allows a user the possibility of maintaining no more than one credit card. You can keep making all your purchases from a single card without the need to keep track of different cards. For exciting and new offers on credit cards apply online now.

Higher credit limit enables a user to access one card over many at once. SOURCE: thisiswhyimbroke.com

Help during Emergency

There may come situations in your life where you will be in need of immediate funds. For such emergency situations, keeping a higher credit limit may turn out to be a boon. You can access the money immediately without struggling to seek different options.

Reward Points

Keeping a higher credit limit allows the possibility of greater reward points. You can use these reward points to pay for travel expenses, medical bills, dining bills at restaurants and other such facilities. To extract reward points in the best possible way, it is recommended that you make payment in full before the deadline. This will not only improve your credit score and credit limit but will also enable you to get more privileges from the bank. If you want to extract this benefit from a credit card apply now.

Better CIBIL Score

Credit Information Bureau India Limited commonly known as CIBIL is a credit information company. Its purpose is to maintain the records of all the credit-related activities of different companies as well as that of the individuals. Maintaining a higher credit limit on the existing is more rewarding than applying for a new one. This is because the credit score is better maintained in the long run. Lenders often look at the credit history to assess the capability of successfully managing the credit by a cardholder. In other words, a higher credit limit will add more to the CIBIL score.

Easier Loans

Banks are very skeptical in terms of offering loans. With a higher credit limit, the possibility of getting additional loans such as a mortgage loan, car loan or even a new credit card increases and becomes easier. With a better-maintained credit card history, banks will be less reserved in dispensing loans to you. If you never had a credit card, start with a new credit card apply now for enjoying the benefits.

Lower Rate of Interests

Even the chances of getting loans at lower interest rates increases as higher credit limit implies better credit score. Therefore, you will be preferred by the lenders for the best offers rather than at the cautionary higher rate of interest.

Protection of the Cardholder

What a cardholder may not be aware that the credit card companies offer many rewards in disguise. Of course, the catch is to have a higher credit limit so as to get more and better privileges. Credit cards provide numerous consumer protection benefits such as price protection, coverage for goods lost, extended warranty on products and so on. If cardholders are using their cards for making large purchases, their card issuer may take measures to help them in troubles regarding the purchase.

A higher credit limit, as it seems, can offer additional boons. One only needs to be aware and careful about his expenses. If you manage to spend in a prudent manner, a higher credit limit is only going to help you in many scenarios. With due consideration, if you have still not applied already for a brand new credit card apply now!