Looking for ways to have a positive impact on your credit score? Increasing your credit limit is one simple way to help your entire financial situation. Having good financial habits can pay off big in the long run, affording you more flexibility in making a big purchase, better interest rates for loans, not to mention the rewards for spending with a more expansive credit line. Here’s how to increase your credit limit and start reaping the benefits.
How To Increase Your Credit Limit (It’s Easy!)
Increasing your credit limit is often as simple as asking your credit card company. Many credit card companies offer the chance to do this online or in some cases, will offer an automatic increase. Most credit issuers will require you to report your annual income at the time you request the increase. Please note that this may prompt a credit check to see your credit score. Pay attention to how many other new lines of credit you have opened in the past six months to a year so it doesn’t ding your credit score.
Increasing Your Credit Limit Thoughtfully Will Boost Your Credit Score Over Time
Boosting your credit score doesn’t happen overnight, so it’s important to know the good habits that will build it over time. An important thing to remember when increasing your credit limit is to keep an eye on what percentage of your credit line you use per month. Keeping your credit utilization rate low (Experian recommends 30% or less ) will help improve your credit score over time.
A credit score is an essential metric used by lenders to determine interest rates on loans, amounts you are eligible to borrow, and other important terms. Not maxing out your credit card every month will help you get more desirable loan offers and terms.
A Higher Credit Limit Will Help When Making Big Purchases
More access to credit is a good thing over the long term, specifically if you want to make a big purchase like buying a house or a new car. An increased credit limit tells a lender that your credit card company trusts your history of payments over time, which helps in getting a favorable interest rate.
Earn More Rewards By Spending With Credit
Bumping your credit limit offers more than just access to more money. A lot of credit cards offer purchase and consumer protections (and are easier to make returns with) than paying in cash.
Get safer spending, more perks, and flexibility on what you earn when you learn how to increase your credit limit. Also, with a higher credit limit, you can earn more rewards for your spending. Travel points, merchandise, and cash back are all incentives that can really stack up depending on your priorities.
Need A Credit Card? Start With DEXSTA Visa Platinum
If you are hoping to open a credit card with a great introductory rate and no balance transfer fees, the DEXSTA Visa Platinum Credit Card is a great place to start. Introductory rates start at 2.99% for up to 12 months.
Get points to cash, travel, rewards, merchandise, or however you like to spend your savings. DEXSTA’s promise is no junk fees with any of our credit cards. In addition to no balance transfer fees, you can expect no over-the-limit fee, no annual fee, and no cash advance fee. If you aren’t already today, become a member of DEXSTA Federal Credit Union, and start earning these rewards.