If you are residing in the UK, then you must be aware of the importance of your credit limit which plays a crucial role in your finances (as the financial market is very volatile because of Britain’s exit from the European Union). It is a well-known fact to each of the credit card holders that credit limit is the extreme amount which a person can borrow from any financial institution or charge on a credit card.
It is vital that one should not exceed the credit limit on loans or on the credit cards; otherwise, the person might have to incur penalties and other fees that may result in his/her reduced credit limit. In this post, the readers will be able to go through that how to improve credit limit while in case you are applying for a loan in the UK. So try these simple steps and get benefited.
Try to build your case
This is the most important step to improve your credit limit. You should let your credit know that how long you have been associated with them and how you have been a loyal customer. Also, make sure that you have got a strong payment history.
While requesting for increasing your credit limit doesn’t forget to mention that your household revenue has grown (if it is so in recent times). It is also important that you should make your payments regularly on time before you request for an increase of your credit limit.
Make frequent use of your card
In order to improve your credit limit ensure that you are using your card frequently. In this regard, it is important to note that some financial analysts have stated that this step requires a lot to put on your card and then pay it back for several months before you get approval for the increase.
As there are a number of shopping and departmental stores in the UK, so you can use your card instead of cash for paying bills. So, if you continue with this strategy, then there are chances that you will get your credit limit improved.
If you want, then you can transfer your card limits
As per the analysis of UK News and World Report, this step or strategy can be more deadly, and it may also impact your credit, but this step can also help you to improve your credit limit. Many credit card issuers in the UK allows credit card holders to relocate a share of credit card’s expenditure limit to any other credit card account, given both the cards should be from the same card issuer.
Never ask for too much and too soon
Most of the card holders out in the UK ask for an increase within six months which is not appropriate. Most of the companies associated with credit card review the credit score of an individual after six months. So if you are not getting any notice from your service provider or credit card issuer, then you can request for an increase.
It is also recommended that you should be conservative while seeking an increase. You should not expect that the creditor will double your credit limit, try to be logical and have patience.
So, these are the few steps through which one can improve credit limit while taking loans and can manage the finances properly without any hassle.