Boosting your credit limit ? Things you need to know

Posted on April 29, 2010
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All credit cards come with different credit limits, how large they are depends on the specific service provider and varies in relation to your own personal credit rating and spending history. If you have been a cautious consumer then you probably hold one or two accounts with pretty high limits. In the current world economic climate, getting a new credit card with a high credit limit is a little tricky; if you've already got your hands on a card with a decent limit, then it's wise to keep a tight grip on it.
The advantage of having one of these accounts is that they keep your feeling financially secure, knowing that if you were to fall into hard times, you'd always have something to keep you afloat. The downside is that some people find it difficult to control their urges to buy the latest products and services, which inevitably pull them down into debt.
So how do you go about getting your present credit card provider to increase your credit limit? There are a few tried and tested ways that satisfy the people who have been placed in charge of setting individual credit limits. The idea is to go through this list of actions and then visit your bank to make a formal request for a credit limit rise; if you're refused the first time don't worry, it doesn't mean you've been turned down for life. Continue trying to raise your credit score and try gain in about 6 months, too many requests will work against you in the end so be patient.
1.Be prompt and punctual with your payments – It sounds obvious, but how many times have you let this slip your mind and then been fined as a result? Showing the credit card provider that you are responsible enough to make your payments on time will look good and definitely raise your total credit score.
For those with hectic schedules, trying to juggle so many pay dates can be frustrating, so why not sign up for online banking. Paperless banking is the way of the future and once you have sent off the payment it will instantly be cleared and you won't have to worry about losing it in the post.

2.Payoff more than the minimum each month – This is not always a possibility for all of us, but paying significantly more than the minimum will again look good for you and increase the chance of you being accepted for a high credit limit.

3.Use your card regularly – This may sound like a bad idea, but you can actually save a lot of money by shopping online with your credit card. The point is that credit providers prefer people that use their card more often, these people become preferred and loyal customers. Try and establish a good purchase record that can be used to sway the decision of a higher credit limit in your favor.

4.Keep it below the limit – Keep an eye on what your current spending limit is and don't go over this. There are usually fees connected to breaking your credit limit and these will become marks on your overall record.

Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.

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