How to Increase Your Credit Limit Like a Boss

There are many advantages to having a credit card with a high credit limit, providing you are financially disciplined and pay off your bills on time. Not only will you be able to get a better credit score (if you are punctual with repayments) but you can also fund more high-ticket purchases, get a larger loan on your card in case of an emergency, and even get higher savings through more cashbacks, reward points, discounts, etc. Even if you are a not a person prone to using your credit card frivolously, you will still have the peace of mind that comes from knowing that you have a large amount of funds in your pocket that you can tap into anytime the need arises, without having to knock on any doors or apply for a personal loan. 

Once you have crossed a certain amount of time with your credit card issuer, paid your bills on time, and accumulated a decent credit score, you can look to increase your credit card limit without any hassles. However, there are different ways in which you can comfortably do this like a boss, without taking any unnecessary stress or hassle. 

Here are a few strategies to increase your credit limit easily and quickly: 

• Use the card regularly: This may seem counter-intuitive, but when you use your card frequently, it is a sign that you are a customer who should be valued as you generate more money for the issuer.  
   
• Repay your bills on time: While you can always just make the minimum due, it is better for your credit score if you pay the entire due amount on time. This is also a signal to your bank or credit card issuer that you can be trusted in future too to pay back any dues on time. This will hold you in good stead when you do put in a request for a higher credit limit. 
   
• Show additional income sources: Whether you have a high salary or not, you can always build up additional (but legal) sources of income through a variety of ways, such as freelancing, consulting, reselling, or other avenues online. If your credit card is from the bank with which you have a savings account, it is even better. When you have multiple income streams (even if it is from a Systematic Investment Fund or mutual fund with dividend payouts) it can build up trust that you will always have enough income to pay off your dues, even with a higher credit limit. 
   
• Maintain an optimal credit utilisation ratio: Your credit utilisation ratio is an important aspect of your credit report and goes into your credit score. This is the amount of credit you have already used or owe divided by your credit limit. An ideal ratio would be 30%, which means that you use only less than 30% of your credit limit. This shows the issuer that you have other income sources to rely on and not just the credit card for your expenses. It also shows that you are a responsible spender and not credit hungry. 
   
• Improve your credit score: All of the above strategies will result in an improvement in your credit score within 6 months at the very least. A high credit score, above 750, is absolutely important if you have to get approved for a higher credit limit. It is also important when you are applying for other kinds of loans and wish to get one on favorable terms and attractive interest rates. You can know your credit score by checking your credit report and this should be done ideally every quarter. By doing this, you will be able to correct any mistakes in your report which could be contributing to low scores or take steps to improve your scores at the earliest. You can get free credit reports from several online aggregators but you can also subscribe for more in-depth reports through any of the leading credit rating agencies. 
   
• Request for a credit limit enhancement: Usually, if your repayment habits have been disciplined and your credit scores have been good, you will be offered a credit limit enhancement automatically. However, if you have not received one yet, you can always request for it by calling up the credit card helpline or speaking directly to your bank manager in charge of credit card accounts. If you are speaking to an official, make sure you have the data ready to back up your case, including your income sources and past repayment history. 

Follow the steps given above and you will be able to increase your credit limit without any hassles. Just make sure to continue to maintain a good credit utilisation ratio and credit score even after you have your credit limit increased.