Credit Card: You too should increase your credit card limit during the festive sales! Learn how to do it..

The festive season has begun, and with it, bumper deals and festive sales! Shopping lists have grown long, and you're tempted to buy that favorite gadget or home appliance this time. If your credit card limit is running low, it's understandable. Credit cards have become an integral part of our lives. They not only serve as short-term loans in case of emergencies, but also offer great offers, discounts, and reward points on shopping.

Every credit card has a fixed limit, which depends on the cardholder's income, credit score, the card chosen, and the bank's criteria. You can't spend beyond this limit. But the good news is that you have the option to increase your credit card limit. If you're looking to increase your credit card limit, here are some easy and effective ways to do so.

5 Easiest and Most Effective Ways to Increase Your Credit Card Limit
Increasing your credit card limit isn't difficult. You just need to keep a few things in mind and approach it correctly.

1. Apply for a New or Upgraded Card
This is the most straightforward way to increase your credit card limit. If you feel your current card isn't meeting your needs, you can apply for a new or upgraded credit card. Upgraded cards often offer higher limits, as well as additional benefits and reward points. This can offer better benefits than your current card.

2. Request a Limit Increase Directly from Your Bank
You can also increase your existing credit card limit. You'll need to request it directly from your bank. Most banks allow customers to request this through their online banking portal, mobile app, or customer care. However, the bank will carefully consider factors like your credit history, credit score, and income before approving your request. If you have multiple cards, select the card whose limit you want to increase.

3. Provide information about your improved financial situation
Sometimes your income increases or your financial situation improves, but the bank is unaware of this. For example, your salary may have increased in the last few months, but you are still using your old credit card with the existing limit. In such a case, you can inform the bank about your new financial status by email or by visiting a bank branch. You can request the bank to increase your card limit by attaching documents like your salary slip, income tax return, or bank statement.

4. Take advantage of annual increments
If you consistently pay your credit card bills on time and use your credit card responsibly, most banks offer annual credit limit increments. This increment is often automatic, but if you haven't received it, you can inquire with your bank. Sometimes, banks automatically increase your limit with special rewards and offers. Even if you don't need it immediately, increasing your annual credit limit can be helpful as it strengthens your credit history.

5. Improve your credit score
Since banks prioritize credit scores when determining credit card limits, it's crucial to maintain a high credit score.

Timely payments: Always pay all your loan and credit card bills on the due date. Even a single missed payment can severely impact your credit score.

Keep credit utilization low: Use only a small portion of your total credit limit. Experts recommend using no more than 30% of your total credit limit. For example, if your credit limit is ₹1 lakh, try not to spend more than ₹30,000.

Don't close old accounts: Keeping old credit card accounts open gives you a longer credit history, which is good for your credit score.

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