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Mastering the Art of Increasing Your Credit Card Limit

by Ellsa
how to increase limit of credit card

In today’s fast-paced world, credit cards have not only become a popular payment option, but they are also a preferred financial tool to manage expenses and maintain a healthy credit score. The credit limit of your card defines the purchasing power. A higher limit not only provides flexibility but also aids in maintaining a lower credit utilization ratio, boosting credit scores.

However, one of the most critical aspects of using a credit card effectively is understanding and managing your credit limit. A higher credit limit not only provides greater purchasing power and flexibility but also plays a significant role in improving your credit score by maintaining a lower credit utilization ratio. This article will guide you on how to increase limit of credit card and optimize your financial management and make the most of your credit card benefits.

What is a Credit Card Limit?

The credit card limit is the maximum amount a bank allows you to borrow against your card at a given time. An increased credit limit will provide more financial freedom, allowing you to make large purchases, handle emergencies, or even consolidate debt.

Increasing Your Credit Card Limit: What it entails

Banks typically evaluate your credit limit based on your credit history, income stability, and repayment track record. If you have a habit of paying your credit card bill payment in full and on time, there are higher chances of getting an increase in your credit limit.

Benefits of a Higher Credit Limit

Your credit utilization ratio, i.e., the percentage of the total credit limit used, also significantly affects your credit score. A high ratio may indicate a high dependency on credit and could negatively impact your score. On the other hand, a low ratio could suggest financial stability and boost your credit score. Increasing your credit limit can lower your credit utilization ratio, provided your spending habits remain the same.

Another benefit of a higher credit limit is that it improves your eligibility for certain loans. Lenders often consider your credit limit while evaluating your loan application. A higher limit is indicative that your bank trusts you with substantial borrowing, implying that you are a reliable borrower.

How to Increase Your Credit Card Limit

There are multiple ways to increase the limit of your credit card. You could request an increase from your bank, or the bank might automatically raise your limit after assessing your credit behavior. Proactively maintaining a good repayment history and a healthy credit score can therefore play a crucial role in enhancing your credit limit.

Co-Branded Credit Cards by Bajaj Finserv

Bajaj Finserv provides two co-branded cards, namely Bajaj Finserv RBL Bank Credit Card and Bajaj Finserv DBS Bank Credit Card, offering lucrative features and benefits, that can substantially enrich your credit card experience.

Bajaj Finserv RBL Bank Credit Card

The Bajaj Finserv RBL Bank Credit Card provides multiple features like reward points on all purchases, fuel surcharge waiver, milestone rewards, and complimentary airport lounge access. It also increases the credit limit based on your spending, repayment behavior, and credit usage.

Bajaj Finserv DBS Bank Credit Card

The Bajaj Finserv DBS Bank Credit Card allows you to enjoy benefit points on everyday expenses, attractive cash-back offers, airport lounge access, and air miles. The cardholders are also eligible for a higher credit limit upon maintaining a good repayment history.

Application Process for Bajaj Finserv Credit Cards

To apply for the Bajaj Finserv RBL Bank Credit Card or Bajaj Finserv DBS Bank Credit Card, you can visit the Bajaj Finserv website, fill in the required details, and submit your application. Once your application is verified and approved, your card will be delivered to your mailing address.

Remember, being diligent with your credit card bill payment, keeping a low credit usage ratio, and maintaining a good credit score are key practices in the art of increasing your card limit. The Bajaj Finserv co-branded cards offer an array of benefits to enable a rewarding financial journey. So leverage these practices and co-branded cards to enhance your credit limit and make the best out of your credit card experience.

Conclusion

To conclude, increasing the limit of your credit card is not a tedious task if managed properly. Master the art of increasing your credit card limit with the right practices and enjoy the benefits it brings. Maximizing the benefit of co-branded credit cards offered by providers like Bajaj Finserv can add significant value to your financial planning and stability.

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