Tips before raising your credit card Limit
Tips before raising your credit card Limit
Nowadays, credit cards are not hard to come by. Not just for the rich people. Almost everyone already has it in the wallet. There is no need to bring much money to shop and it can keep from people who want to steal it. Because in the present day almost all products such as malls, shopping using credit cards as a legitimate payment.
In addition to credit cards as a legitimate function of payment instruments, credit cards can also be used as a source of funding.
There are usually two types of credit cards:
1. Credit card Limit.
This is the maximum number that the credit card holder can use for their entire transaction. The point is that numbers cannot exceed that number. Start shopping, shopping in installments, or cash withdrawals. For example limit limit is 50million then we can shop but can not exceed the value. While
2. Cash withdrawal limit.
This value is usually a percentage of the overall limit. For example, the credit card limit is RP50 million, then the cash withdrawal limit may range from RP20 million to RP30 million.
Bank consideration before raising the credit card limit
It is necessary that you want if you want to increase your credit card limit, because a bank does not directly agree with you. The Bank that issued the credit card also has a consideration before granting the request for a limit increase.
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Here are some bank factors before agreeing to the limit increase application:
1. Your income
If you are a self-employed or employee, the income must be higher or your salary is increased before the first time you get a credit card for a bank. With increasing revenue is not unlikely your application to raise credit card limit will potentially be large approved, which means your ability to bear debt repayment also improves. A simple ratio that banks commonly use is your credit card limit value not exceeding 30% of your total revenue
2. Track record The track record is very important, because a bank will definitely check you out, whether there is a arrears from the bank or from another bank that you have already had. If you have ever delinquent then there is a small possibility that the bank will accept your request to increase the limit. If your record track is good for example you can do the repayment on time there is a chance that your application limit increase approval.
3. Have your own house
In addition to the good revenue and track record in repayment, banks are also usually noticed where you live. If you already have a place to stay and have long lived at the same address, the bank will assess you as a debtor with a low risk. This means you have a chance to increase your credit card limit.
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Before requesting a limit addition, it's worth considering the following:
1. Long use a credit card?
If you are just holding a credit card within a monthly period, we recommend that you accept the limit given by the bank. Think of a bank-provided limit, don't immediately ask for additional credit limit, because it is too high risk
2. Your goal
Your goal in increasing the credit limit should be tailored to your needs. If you are a serious mileage hunter, you will never have to increase your credit card limit according to the maximum transaction limit you usually spend each month. So, you can optimize mileage accrual, which you can then use to purchase cheap or free airline tickets.
3. Who is your credit card user
First consider who holds that extra credit card. If the credit card is for a spouse, you can adjust according to your spouse's financial needs. But if that extra credit card is for a child, it's a good idea to give a minimum limit. Limit limits are important to educate your child in appreciating money, not to be wasteful.
4. Pay attention to your abilities
This is the most important thing you do before you increase your credit card limit: measure your financial skills in making repayment. In evaluating its own capabilities, you have to be honest so that the facilities offered by credit cards do not make you even entangled debt.
That's a little discussion about things you need to keep in mind before raising your credit card Limit. If you have any questions please you comment below.