Wednesday Sep 3, 2014

How to Raise your Line of Credit

8 June 2009

160168 13 line of credit1 150x150 How to Raise your Line of CreditEveryone could use a higher credit limit especially since you can never have to much credit. Whether it is for big emergencies or you use your credit card on a daily basis and find a higher credit limit easier to get by with.

Here are a few tips to help raise your credit limit.

1. Use your Credit Card a lot
If you are the type who uses their credit card in emergencies only causes credit card companies and banks to look at your spending behaviour and whether you can pay them back or not. They will begin to doubt whether to give you a higher line of credit.

2. Making Payments
When you are making your monthly payments, try to pay more than just the minimum amount. If it is possible for you, try to pay it off entirely. This shows that you are aiming for better credit and you deserve a higher line of credit when you apply for one.

3. Simply Make the Call
Make the call to your bank or Credit Card Company and ask their procedure on raising your line of credit. They might automatically raise it if they see a good spending pattern or credit history and some might need further information. Either way it might be easier than you think.

With raising your line of credit you have more spending power but you have to be wary of one thing. Banks and Credit Card Companies have their own agenda, by raising your limit they hope you spend more causing you to pay them back in interest if you get into a huge amount of debt. Just watch your spending and you will be fine.

About the Author

Sensei

My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

Comments (3 )



Corvillus Wrote:

Those tips might work now to get the increases, but in the future they likely won’t if Flaherty’s new credit card provisions pass. Unfortunately, one of the changes (and probably the only one I don’t agree with) is that credit card issuers can no longer make unsolicited credit line increases. So at best you’ll be offered increases by the company, and at worst you’ll only be able to ask for them.

That said, I’d wager they’ll still be keeping preapproved limits on file that are different from the ones you have, so good use of the card and carrying low to no balances will probably increase your preapproved limit on their side, so when you do call in you’ll get that increase no questions asked.

[Reply]

Sensei Wrote:

With Flaherty’s new regulations I find the change for credit card issuers no longer being able to make unsolicited credit line increases to be a good method to decrease the amount of debt people could accumulate. However, at the same time I feel it is still taking away some freedom away from the credit card clients.

In addition to any developments I will in turn be prepared to write further information on how to get credit line increases but if everything goes according to what you said with the preapproved limited on file. Then making good use of your card will enable you to get the increase they are already preapproved you for.

[Reply]

James Wrote:

But in reality the finance minister has not helped those who are responsible. For example, your credit score is determined (In large part) by your debt-to-credit-ratio. By limiting automatic credit limit increases, people will likely suffer increased credit inquiries – lower scores.

[Reply]

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