Useful Tips On How To Increase Your Credit Card Spending Limit
Many of us in the UK would love to have a higher credit card limit than we currently do. However, short of an immediate pay rise, few of us give any thought as to how we can go about increasing the spending limit that our UK credit card provider have set. And yet, did you know that nearly all increases in UK credit card spending limits originate from an offer from the UK credit card provider, not from a request that we make to the card provider? Well, it’s true and here are some useful tips of how you can go about persuading your UK credit card provider to offer you an increased spending limit without them even knowing you had planned to do it!
Spend
First and foremost, your credit card provider is highly unlikely to offer you an increased credit card limit if you do not use their card that often. As such, the first step to ensuring that your card provider offer you an increased spending limit is to make sure you use the card in the first place. If you also have a credit card loyalty pints scheme with your card, this also has the double-whammy effect of giving you lots more loyalty program points to use.
Repay
Although you may be using your card more often, you still need to make sure that you repay your card. If possible, what you should be aiming to do is to use your credit card each month until you have used the maximum available balance and then repay the card in full at the end of each credit card statement payment date. Again, this should give you a double-whammy as you should aim to replace using cash payments with credit card payments. Provided you are putting the cash away in a savings account each time you use it to repay the card in full on the next repayment date, this should allow you to get interest paid on the cash while you use the interest free repayment period on the card!
- Tips For A Freeloader Credit Card User
Before you panic, there was a time when a ‘freeloader’ UK credit card user was considered the perfect customer. Freeloader card users always pay their outstanding credit card debt in full on the statement payment date, never carrying a balance.
Creditworthy
The next step in making sure that you get offered an increased spending limit on your credit card is to show your credit card provider that you are creditworthy. In effect what this means is that you cannot spend more on your credit card at the expense of not repaying another loan or debt you have, as this will have a knock-on effect to your credit rating and so the credit card provider will not agree to offer you an increased spending limit on your card.
- Credit Building Tactics
Much is written about credit ratings, the score against an individual’s name, that rates their eligibility for credit. This article discusses different methods that you can use to try and build a new, better credit rating.
Why is it even important?
You may now be asking yourself why all this bother is even worth it. The answer to that is far simpler than you may imagine and actually has a very profound effect on all your borrowing. The basic argument works like this – your credit card provider offer you a credit limit based on your current earnings and credit worthiness. You use the card often, but repay in full each month. Your credit card provider likes your sensible use of the card and so offers you a higher credit limit. You apply for a loan with another credit provider, who asks a credit rating agency to provide them with your credit rating report.
Your credit rating report will show your credit card limit. You new lender knows your existing salary, as you haven shown him evidence of this. However, your potential new lender notices that your credit card company has offered you a credit card limit higher than that normally given to cardholders with a similar salary to you. At the same time, your potential new lender notices that you have no bad reports from your credit card provider, even with your increased credit limit. Your potential new lender assess that you are a sensible borrower and offers you a credit limit higher than that which would normally be offered to borrowers with a similar salary to you. And so the spiral continues, such that you now have access to borrowing higher than you would normally have been offered if you didn’t have such a good credit rating.
Related Links
BluePink 
