Key Signs to Know When to Increase Your Credit Card Limit

When to Consider Increasing Your Credit Card Limit

You can get benefit from your credit card while keeping financial control if you use it sensibly. The key to effective credit management is knowing when to raise your limit.

Increasing Your Purchasing Power

Raising your credit limit can enhance your purchasing power. If your earnings have increased, consider requesting a higher limit to match your financial capacity.

When Your Credit Card Spending Is High

If you are using 80–90 per cent of your available credit, it can negatively affect your credit score. Increasing your limit reduces your credit utilisation percentage that helps in maintaining a healthier score.

Life's Unexpected Twists

Unexpected costs can occur at any time. You can have greater financial flexibility to effectively manage unforeseen situations when your credit limit is higher.

Maximising Rewards

Credit cards offer cashback and travel rewards but sufficient credit is needed to fully leverage them. By increasing your limit, you can maximise these benefits without exceeding 100 per cent of your credit.

Keeping Track of Your Finances

Reviewing your credit limit on a regular basis allows you to keep an eye on your spending, confirm transactions and modify your limit to suit your needs.

Staying Responsible

If you pay on time and spend responsibly your credit limit may increase. A healthy credit profile can be maintained by limiting your utilisation to about 30 per cent.