Having a credit card is the norm now. It is the best way to go about building your credit score and getting access to some of the finest things. Not having a credit card just simple means that you are not known in the lending and borrowing system. However, most time when you receive your credit card it is of a small limit. Meaning the money you receive on it is not enough to do much. So, how can you get a credit increase and in a short period of time?
Things to know about Credit Cards
There are important common sense things you should know about your credit card. Even before you seek that increase. Here are a few things to keep in mind:
- Credit cards hold some of the highest interest rates you will ever come across. This means that what you use from it, if it is not paid off in time, you run the risk of paying high interest on the amounts.
- Most credit cards run an interest rate of 19%. From this you can do the math to see if you owe a certain amount how much you will be charged as interest. So if you owe $1000 past your due date, you more than likely will have to pay the Credit Card company around $190 of interest. That is a lot to give away.
- Ensure you can see in the near future any amount of money, you plan to use from your credit card, coming your way to pay it back. Remember, it is not your money. After all it is a CREDIT card.
- Importantly, always keep in mind that a credit card can build you or break you. Never lose sight of that.
- Most times with a credit card you really want to keep your spending below 30%. Anything over that amount will affect your credit score badly. This means that if you have a credit limit of $2,000 you really do not want to have more than $600 reported as owing. Sure you can spend $1,000 from it but ensure you pay back at least $400. Credit Karma is a great way to check your credit without affecting it. Also credit karma will indicate when your credit card company reported your balance. You can then use that information to know what day of the month they report it. Then ensure that you pay your balance. In so doing there will always be activity on your card but not much amounts owing to negatively affect you. That is ONE KEY TO CREDIT CARD MASTERY.
Understanding your Credit Power
The last point above is exactly why we will be looking at how to get a proper credit increase on your credit card(s). Think about it, what can you really buy now if your credit card limit is $1,000 if you want to not go over your 30%? Practically nothing. Ideally, one should aspire to not have less than about $15,000 on a credit card. This means that you can then spend up to $4,500 from your card and not running to check your credit score at the end of the month to see how it was affected. If it is reported owing that is, you will be in the safe zone. Which brings us to the purpose of this article.
HINT – It is ultimately best to keep your spending under 10%
Applying for a Credit Increase
Normally you would just apply for a credit increase online or you would call to request the increase. Most times it is refused. Here is a one inside tip that will increase your chances of getting that increase you need. As with most things, it is always a negotiation strategy so when making your request do this.
- Always request a higher limit than what you actually want. This will increase your chances of the counter approval amount hitting closer to your desired amount. Example if you want a credit increase up to $12,000 ask for about $16,000 or even $18,000.
- You would think that you can make a request at anytime right? Wrong! Try to make your request for a credit increase after hours. What does this mean? Make your request after around mid night. For some reason this increases your chances drastically. Even in a very short period of time, you can be granted that well needed credit increase.
Those are the two primary tips to keep in mind when thinking of going for a credit card increase. Give this a try and please return to this website and leave a comment to let me know if this worked for you. Also, if you find the content here somewhat helpful or could help a friend, please subscribe and share. Find some other helpful tips and guides on the Blog Post Page.
