There is no doubt: the credit card It is your greatest ally when shopping, both for its practicality and other benefits.
Although credit cards have significantly higher interest rates, the advantages and ease of paying with a card make them essential in our lives.
We've put together 5 expert tips to help you increase your chances of getting a credit card limit increase:
1. Update your income to the bank
Your credit card limit is determined based on your income. Banks offer an initial limit of 30% of your monthly income. This means that the higher your income, the higher the limit you'll be granted.
Because of this, it's important for customers to remember to update their income with the financial institution. Previous income can hinder their request for a limit increase, as if it's lower, the bank will negotiate based on it.
2. Always pay your bill by the due date
Organizing your finances to avoid revolving credit and debt installments is essential to increasing your credit card limit, because banks maintain a payment history for their customers, and a pattern of late payments and the minimum debt amount are viewed negatively.
The golden rule is: pay your bill before the due date, preferably in full. The bank will verify that you've paid your debts on time and in full, and this will increase your chances of receiving benefits. However, one tip to avoid paying after the due date is to choose the direct debit option.
3. Always try to increase your credit score
A credit score is a score based on a customer's repayment capacity, verified by financial institutions before granting credit. The score ranges from 0 to 1000, and factors such as age, monthly income, marital status, and registration with the SPC and Serasa credit bureaus are analyzed.
Experts say that to improve your credit score, it's recommended that you pay your bills on time, pay off overdue bills, make payments in advance, have accounts in your own name, update your proof of income, etc.
4. Always use your card for most expenses
It is known that the factors that determine the credit card limit are the need, but financial institutions grant a general limit according to the customer's income, and depending on the use of the card, this limit may be increased to meet the customer's needs.
However, a good way to show your card issuer that you need an increase in your bill is to use your card to pay as many expenses as possible and as close to the limit as possible.
However, if the administrator verifies that you are a regular customer and that the current limit is frequently reached, they will realize that your profile needs a limit increase.
However, it's always worth remembering that often exceeding your credit limit alone isn't enough to qualify for a credit increase. It's also important to ensure that you're paying your bills on time.
5. Try to negotiate the limit with other banks
If, after negotiating the limit with your financial institution, you're still not satisfied with the offer, we recommend looking for other banks to negotiate! However, even if you demonstrate the same account history, income, and purpose, banks have different criteria for determining the limit.
Ultimately, you may find banks willing to give you a lower or higher limit.
For further information, visit the website Serasa by clicking here.