People for credit cards because for various reasons. However, in many cases, even after opting for a credit card, the borrower feels the need to borrow more. This problem can be solved by increasing the credit limit on one’s credit card. This article discusses 6 important points that you must consider for increasing your credit card’s credit limit and can also help you use your credit card efficiently by enlisting certain practices.

How to use one’s credit card?

You might have opted for a credit card with a very affordable repayment plan and very exciting rewards on offer, like one of IDFC FIRST Bank’s lifetime-free credit cards that do not charge any annual fees from the borrower. However, you can still end up in a debt trap if you are not aware of the credit card’s due date and the total outstanding amount. You must, therefore, always have the repayment plan of your credit card in mind while making any expenses using the credit card. This said, let’s now consider the case where the borrower requires more credit through their credit card. In this case, you must keep these 6 points in mind:

  1. You must use your card regularly

Firstly, you must use your credit card regularly to be able to apply for an increase in credit limit. One of the first things that a bank checks while sanctioning a request for an increase in credit limit is whether the borrower has used their card and has paid their bills on time.

  1. Provide proof of an increased income

If you wish to make a request with your bank for an increase in credit limit, you must provide proof of an increase in your annual income, for example, to prove that your credit repayment capacity has increased over the years.

  1. Request for an increase in credit limit

If after a thorough assessment of your expenses and repayment capabilities, you feel that you can afford to assume additional debt in the form of a credit limit, you must approach the bank and request them for an increase in credit limit. As mentioned in the previous point, you must provide proof of an increase in your repayment capabilities to the bank.

  1. Apply for a new card

Another option that you could consider is opting for a new credit card. Getting a new credit card helps you increase your credit score too if you repay your dues on time.

Teenage girl shopping online with credit card and laptop

  1. Be mindful of the repayment schedule

You must be very mindful of your credit card’s repayment schedule. Consulting a credit card EMI (Equated Monthly Instalments) calculator can help you plan for your credit card’s repayment in advance by knowing your future EMIs.

  1. Do not rush to increase your credit limit

Often enough, simply waiting for one’s credit limit to increase can prove to be more helpful from a borrower’s point of view. You might not be able to afford another credit card and might not be eligible for an increase in credit limit. In such a situation, you could consider waiting for a few more months to increase your credit limit.

You must keep these six points in mind before applying for an increase in credit limit on your credit card to avoid an accumulation of credit card debt.

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