I have been offered many times to increase my credit line, but I have not accepted and I have not had the need. It happens that there are people who want to increase it, but do not have the same fate.
This may be due to many factors, such as poor payment behavior. In this note I show you how you can meet all the requirements to increase your credit card line.
Before you request the increase, be sure to read: The interest depends on the line of credit cards.
Let’s define some terms
To start, you need to be clear about the definition of credit line. A line of credit is the maximum amount you have available on your credit cards. The line of credit runs out as you consume the balance they give you. This is reset when you pay on time.
The amount that a bank gives you to dispose in your credit cards varies according to each person. That is why it is not strange that you and your friend take out your cards at the same bank and she has an S / 2,000 card while you have an S / 500 card.
The factors that matter for a bank to give you more or less credit
Following the previous example, so that your friend has more credit than you have had to: have a verifiable income, a good credit history, etc.
Banks also take into account the amount of debts you have registered at the time you request your cards; In the same way they consider the credit behavior that you have accumulated.
How to get my limit raised
First of all you should know that you are not an immediate candidate for an increase in your credit. You must be patient and accumulate good payment behavior and a good credit history to achieve it. Usually you must have at least one year with your cards.
Additionally, as banks should know your credit history you should try to use them frequently (be careful while being responsible!). It will also be important to be a good payer (not those who always pay the minimum amount) and have a clean record (no arrears, without being registered in Infocorp, etc.).
Greater credit greater responsibility
It seems great to have not S / 500 but S / 5,000 credit right? And it is if you know how to handle it. Before requesting the increase of the line you should know that just as your line also increases the minimum amount of your monthly payments. So you must be ready to increase the payment of your minimum amount.
A great benefit of increasing your credit line, if you are a good payer, is that you will become more attractive to the credit bureau so that later you will be a good candidate for larger loans.