Credit Card Tips: When should you increase your credit card limit, what is the right way?


In the last few years, the trend of credit cards has increased rapidly. This plastic card provides a lot of convenience in things like shopping to paying bills. But, sometimes there is a problem with the limit while using a credit card. Let us know when the credit card limit should be increased and what are its advantages and disadvantages.


When should the limit be increased?
It completely depends on your needs. If you have to run around a lot in connection with work, then increasing the credit card limit can be a good decision. This will reduce your dependence on cash. If you do things like shopping, bill payments, airline tickets, and hotel bookings through a credit card, then you can also think about increasing the limit. However, while increasing the limit, you should take special care of the ratio of your income and expenditure.

Keep these things in mind
Whenever you think of increasing the credit card limit or you get such an offer, then definitely pay attention to what is the existing limit and how much increase is being offered in it. If the existing limit is low and the offer to increase it is good, then you can take advantage of it. For example, if the limit is Rs 2 lakh and there is an offer to increase it to Rs 2.5 lakh, then this is a good increase.

If you increase the limit to more than Rs 5 lakh, then you will not need to keep more credit cards. However, in this, you will have to see your convenience whether you want to keep only one card or more than one.

How to increase the limit?
Many times banks allow increasing the credit card limit without additional information and income proof. However, for this, your record of paying credit card bills should be good. Many times banks also look at other things like the ratio of your expenses and income.

At the same time, if you are trying to increase the credit card limit on your own, then the bank can ask you for details like income proof. In such a situation, try to get maximum benefit from the limit.

Keep the cost in mind
While increasing the credit card limit, you should also think about the cost. Usually, banks do not charge extra for higher credit limits. This is also done based on your income and repayment history. But, if the bank is charging for an additional limit, then you should check whether it is right according to the cost or not.


Make your decision like this
Before increasing the credit card limit, you should think well whether you need it or not. It should always be kept in mind that the money on the credit card is a loan, which has to be returned. Many people wastefully use credit cards and get trapped in the debt trap.

In such a situation, before increasing the credit card limit, all aspects like need, income, and expenditure should be considered. If you spend more by increasing the limit and are unable to repay it on time, then your credit score will also be affected.

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