These Three Things Qualify You for High Credit Card Limit
It is actually beneficial to have a high credit card limit. It will not only serve as a line of credit to use, you will be able to make large purchases. But unfortunately, it is not everyone that can be granted high credit card on their card even though they request for it. In fact, if you qualify for high credit card limit, you don’t need to beg your card issuer for it. It will just come to you with ease. So, if you have been asking your card issuer to increase your credit limit and you are denied, it may be that there are certain things you have not gotten right. It is not that your credit card provider just chose to prefer others to you. There is no sentiment in it at all.
I will not like to bore you with too much information. Therefore, let me quickly go to the three things that will help you get your desired high credit card limit.
High Credit Score: If you have a poor credit score, it may be practically impossible to get high credit card limit. Your credit score is used to measure your creditworthiness. So, when a credit card company grants you a particular level of credit limit, it means that it believes that you will be able to pay back the amount if it happens that you utilize all the credit. Credit limit means the highest amount of balance you are allowed to carry on your credit card. Once you have reached your credit limit, you may not be able to use the card to make any transaction unless you pay back part or all the card balance. So, your credit card limit is the reflection of the extent of confidence that your card issuer have in you when it comes to credit matters. Since your credit score is used to gauge your creditworthiness, it behooves that you should improve your credit score if you want to enjoy high credit card limit. There are many things that goes into how your credit score is calculated. Or let me put in in another way, there are factors that determine your credit score. These include your credit history, credit utilization, new credit and credit types among others. When you mind these factors, you will soon see your credit score improving.
Read Also: How to Build Credit Score Without Going into Debt
High Income: High credit score is not enough to enjoy high credit card limit. Even though you have excellent credit score and you don’t earn enough income that justifies the amount of credit limit you are asking for, you will still not be granted. For an example, somebody who earns just $3,000 cannot be asking for $5,000 credit card limit even though he has excellent credit score. It will be easier for somebody that earns $10,000 monthly to get $5,000 credit limit. So, if you have reached the highest credit limit that your income can support, the only thing you may need to do in order to increase your credit limit is to increase your income first.
Low Debt to Income Ratio: This point is closely related to the point just mentioned above. High income is not also a guaranty that you will get high credit card limit. If your income is high but the loans and credit card balances you are carrying are already putting too much pressure on your finance, it will be difficult for you to get high credit card limit. If your debt to income ratio is already high, you may need to pay down your debt first before seeking for high credit card limit.
Read Also: Significance of Debt to Equity Ratio
In conclusion, all the three points mentioned in this article are very important. None of them can work in isolation of the others. If you have an excellent credit score while your income is low, you will still not be able to get high credit card limit. On the other hand, if you have a very high income but your credit score is poor or you have a very high debt to income ratio, you will still not be able to get high credit card limit either. However, if you are able to get the three points right, you may not have problem getting high credit card limit.