There are many things that people need to know about how to increase the credit limit on their credit cards. Some of them make more sense than others. Some of them are more important than others. The key, however, is to be honest about how you use your card and how you manage your credit. If you aren’t completely honest about your use of your cards, you’ll never know if there is a way to increase the limit. Here are some of the best tips on how to increase your credit limit:
Do not carry balances on your credit cards one to four times. Some people make the mistake of only carrying one or two cards at a time. The good news is you can request an increase on your credit limits without negatively affecting your credit reports. Even if you have hard inquiries on your credit cards, there’s still a way to increase the limit. Your limit alone really does not affect your score, but how you use it can.
Increase your credit limits by avoiding late payments. One of the first things that many people think of when trying to increase their credit limits is paying off credit cards promptly. Unfortunately, this is one of the major factors that affects your scores. It’s important to note that even if you have hard inquiries on your reports, lenders still look at your ability to pay promptly. If you have late payments, they will see this as you are irresponsible with money. So, to avoid having difficult situations later on, be sure to make your payments on time.
Increase your credit limits by reducing your total utilization. Whenever you are able, try to reduce your total utilization on all your credit cards. If you carry a balance from one month to the next, also keep track of your percentage utilization so that you’ll know where you are currently at.
Increase your limits by paying your bills in full. This is something that a lot of people have a hard time with. When you pay your bills in full, you eliminate debt that you may have accumulated. This, in turn, will increase your credit score because it shows lenders that you’re someone who can handle credit and doesn’t like to accumulate debt.
Increase your limits by paying off your balances in full. Again, this is something that many people struggle with. If you get into the habit of paying all your bills on time and completely, your payment history will reflect this. You should also aim to pay off your credit cards at the end of each month. By paying off your balances, you are increasing your ability to get loans and other forms of credit.
Increase your limits by requesting an increase. Requesting an increase in credit limits is a little trickier than requesting for a credit card with a hard pull. Basically, you have two options when requesting an increase: you can go through the normal application process, or you can go through a special process where you’re assigned a unique number. This unique number needs to be on your current credit report and it’s important to make sure that you’re not applying for more credit than you have.
Increase your limits by requesting an automatic credit limit increase. While requesting an increase through the normal process might seem like a pain, it will help you increase your FICO score by a significant amount. Basically, an automatic credit limit increase works by checking your credit report every so often (about once a year) to see how much current usage you have. After finding this out, the system will assign a FICO number to you based on your payment history. This system might seem a bit strange, but it has helped many people increase their credit limits.