Through this blog, we are giving you more than one reason to ask your Credit Card lender to give you a card with more Credit Limit. Usually, the plastic money users are not ready for a higher credit limit on their credit cards as they are apprehensive about paying higher monthly dues. However, the higher the credit limit, the more benefits you will reap.
Here are some points to help you understand how it works:
- If you are taking a credit card with credit limit of 1, 00, 000/month, you spend half of it i.e. 50, 000/month only. Now, if you ask your lender to increase the credit limit to 1, 50, 000 or so and still end up spending 50, 000/month, you have a big chunk of credit in your account. It’s good as you are spending within the limit. Banks like such customers.
- When you remain consistent in utilizing limited credit from your account, CIBIL will give you good ratings with regard to your credit score. And a good credit score is of profound significance while applying for loans or a new credit card.
- As your credit limit increases, the chance of you facing financial difficulties decreases because you have been spending lesser than the credit limit. It means you have enough credit to back you in the times of financial emergency and you need not depend on anybody.
- So your spending is limited means your bank is happy, your credit score is very good and you will enjoy additional benefits on your card such as gift vouchers, reward points and offers. Yes, as a token of appreciation, the bank gives you reward points, offers and discounts, and many other benefits.
Isn’t it a great news? Henceforth, you need to make good use of your increased credit limit to enjoy a secured, self-sufficient financial status and a healthy credit score to avail further financial advantages.
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