A credit card limit is the maximum amount of funds that you can purchase using your credit card. Every time you make a purchase, this amount is added to your credit card balance. To figure out how much more amount you can spend, subtract the credit balance from your credit limit. When you pay off the credit bill, your credit balance again is reduced.

The higher the credit limit is, the more funds you have to utilise for transactions or purchases. This credit limit is in the absolute discretion of the card issuer whose credit card you hold. If you want to increase credit card limit, you should keep the following things in mind –

• Lenders mostly check your payment history and your credit score. A healthy credit score of 750 and above can further help.
• Another factor, on which your credit limit depends, is your income. Higher income is considered as a higher repayment capability.
• Your credit utilisation ratio must be below 60% of your total credit balance at all times. Doing so helps financers and credit bureaus alike to consider you as a creditworthy and financial responsible individual.

Before raising a request to increase credit card limit, make sure that –

• The account of your credit card is open and active for the last 3 months.
• Your credit card is not a secured one.
• You haven’t already requested for a credit limit increase or decrease within the past 6 months.

To sum it up, a credit card limit keeps a check on how much you can spend. Having a higher credit limit gives you the liberty to pay more but can land you in massive debt as well. It helps you maintain a good credit score as well.

If you want to increase credit card limit, you can wait for issuer to automatically offer the same without applying for it. Responsible card usage will compel the financer to offer you a larger amount of credit to utilise with card.

Credit score repair is something all of us need, not just the people with low credit scores. As a result, we created an easy to use, affordable and effective way to help you rebuild your credit history.