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Tactics For Increasing Your Credit Line

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Just about ¼ of the American public says that they would have to significantly change their lifestyle if they didn’t have credit cards. That is a dangerous situation to be in, meaning that you may well be living beyond your means, or easily could do so. But, if you need to expand your credit line, there are some things you can do to do so safely and successfully.

Be Conservative

First of all, don’t get greedy. A 10% to 25% increase in your credit line is a good amount to request. If you ask any more than that, you may find the credit card company gets worried or even suspicious. It could appear that you have encountered a problem, and are planning on living off of your credit cards for a while. Therefore, you can avoid panic at the bank with a more modest request.

Go With The Oldies

Your credit card companies keep track of how long you have had an account with them. Quite often, it is the older cards what will be more willing to work with you on your credit limit. Point out that you have been a good customer for them for X number of years. They are more likely to take a healthy, lengthy credit history into mind with the negotiations.

Give a Reason

It will also help you get your credit limit increased if you can give them a good reason. In some cases, you may have received a pay raise, and can handle bigger payments. In other cases, you may be about to start traveling more, and want to put the expenses on your credit card. Some people even want to use their cards for everyday purchases so that they can earn more reward points.

Check Your Record.

If you have a poor credit rating, good luck with trying to get your credit limit increased. Are you taking care of your obligations? Your credit card company can tell if you can make your full payment each month. So, select a card with which you have a good record, and request an increase on that particular card. It also makes sense to select just one card to raise, because when you request a limit increase, your bank will do a “hard pull” on your credit history. This means they will immediately check your credit. Therefore, you want your request to pay off, so only ask for an increase on cards you are confident about, and just one, at that. Increasing your credit line can give you a cushion you need. But, do so wisely, so as not to damage the credit you have so carefully built.

Raising Your Credit Score

When you raise your credit limit, it usually raises your scores at the same time. Make sure you keep your balances at a 20% balance or below of whatever your credit limit it. Month over month. Do not max out your cards and make the minimum payment. If you do that, your scores will drop.