While a new credit card allows you to make larger purchases, it also tempts you to spend beyond your means. Many consumers have trouble limiting their finances to the credit card line imposed by their banks. This is why so many strive for a higher limit—a reward that banks only bestow on savvy consumers with clean credit histories.
How to Clean Up Your Credit History
Go out of your way to prove that you are responsible. According to Best Credit Card Tips, you can do this by making sure to never overspend and limiting the number of large purchases you make.
Always stay within your credit card limit. If you don’t, your bank may feel that your habits are too profligate to merit an increase. You’ll also accumulate finance charges that make it harder to pay back your debt.
Avoid minimal payments. Try to pay the full amount of your debt when you pay back your bank.
Avoid late payments. These may incur extra fines from your bank, which will sap your finances and convince them that you’re irresponsible.
Follow the terms of your credit card. Check your bank’s website and read up on the terms of your agreement. Banks prefer to reward customers who abide by their rules.
How to Get an Increase
Go to your bank’s website and see if you can request an increase. According to My Card Blog, many banks allow you to ask for one without having to wait for an automatic raise.
Check your credit history to make sure that everything on credit is a current item. According to Credit Card Whiz Kid, your bank is more likely to grant you an increase if your debt is due to recent purchases.
Alternatively, wait for your bank to grant you an automatic increase. Most banks will give you a specific time period after which they automatically raise your limit.
Thomas Beckwith has worked as a reporter and a music critic. While studying for his degree at Wesleyan University, he served as the executive editor and arts editor for the school newspaper. He enjoys writing about contemporary politics and indie rock.