Smart tips for enhancement of credit limit on your credit card

One goes crazy with the credit card by splurge around movie & travel tickets, dining at expensive restaurants, etc. With your spending habits stay unabated and the credit limit is on the verge of getting fully utilised, you start worrying about the continuation of your credit card journey and so the fun that it brings. After reviewing your repayment track record and your average spending amount in a month, bank can up your credit limit. This is called automatic enhancement of the credit limit. But, there are some tips that you can apply to enhance the credit limit of your credit card with minimum 6 months in use.

Provide details of increased income

If you are earning a higher salary for few months in the wake of promotion and job switch, then you can send your salary slip of last three months or Income Tax Returns (ITR) to the bank. The lender will review your salary and the spending pattern. Based on that, you can get a reasonable hike in credit limit.

Show reduced liabilities

During the time of applying for the credit card, you might have been paying equated monthly installment (EMI) on personal loan/home loan/car loan. And if you have closed any of the loans mentioned above, send the loan closure papers to the lender and request it to enhance the credit limit of your credit card.

Request for card upgrade

You can ask the bank to know your eligibility regarding the next level of credit cards. If the bank answers in affirmative, then you can request to enhance the limit of your credit card as well as its upgrade. However, do ask about the annual fees that you will have to pay.

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Shop more and pay dues on or before time

You can spend more than what you did on your credit card and pay the dues resulting thereof on time to make a strong case for rise in credit limit. And if you manage to pay off all the dues on or before time in addition to the payment of loan EMIs, then it will give a positive picture of your credit worthiness.

Demonstrate better limits on other cards

You can show better credit limits on other cards, if any, to increase the limit on the card that you want. For instance-If you have a credit card of X Bank with a credit limit of say Rs 50,000 and a credit card of Y Bank with a limit of Rs 1,00,000, then you can request the bank X to provide credit limit at par with the Y.

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