Do You Need A Higher Limit On Your Credit Card

By Linda Tanner

Nearly everyone who has a credit card has the goal of a higher line of credit. A higher credit card limit will enable you to make much higher purchases, normally purchases that you are unable to get with your current line of credit. Another reason you may want to increase the limit on your credit card is because increasing your limit could raise your credit score, which could make you eligible for better interest rates on future loans.

That may be surprising to hear, but it is very true. If you have a credit limit on your card and are close to the maximum limit on that card, it sends a danger signal to prospective lenders that you are entering into a danger zone. It is seen as a sign of future financial trouble. As far as your credit score is concerned your debt to limit ratio is a key factor. In other words, if you owe $1000 on a card with a limit of $5000, your credit score will be higher than if you owed that same $1000 on a card with a limit of $2000.

The most important thing to do when improving your credit limit is to improve your overall level of credit worthiness. This tells banks and lenders that you can be trusted with credit, and that you are little to no risk for them. When lenders and banks look at your credit report, this is the first thing that they look for.

Once you prove to a bank or credit card company that you can be trusted to borrow money, they may raise your line of credit. You should be careful with this strategy however, as this could only apply to your bank or current credit card company. Having a higher credit line may allow you to have more purchasing power, although it can also leave you with more fees and even an increase in your current interest and APR charges.

Another great way to increase your credit limit is to use your credit card every chance you get. When you have a credit card, don't use it just for emergency purposes. If you save your credit card for emergency purposes only, you'll rarely use it, which is a good thing if you are wanting to get out of debt, but in this case we are talking about increasing your credit score. When this happens, your company will begin to wonder about your spending behavior and ability to pay it back, therefore they will start to think twice about giving you a higher line of credit.

When you send in your payment, always try to pay more than just the minimum amount. If you can afford to, you should try to pay the whole outstanding amount. Doing so shows credit card companies and banks that you are striving for better credit. This way, you'll show them that you deserve to have a higher line of credit.

If you follow the above tips, you'll get your credit limit higher in no time at all. Once you get your limit raised, you should protect it at all costs. If you continue to strive for perfection--you will get a higher line of credit than you ever thought possible.

Linda Tanner researches and writes about debt relief and repairing your credit. If you would like to receive a free 43 page mini-ebook on improving your credit and learn more about the use of credit cards, loans, repairing your credit or getting out of debt check out www.restoreurcredit.com

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