When you're looking for some elbow room on those credit cards, increasing your credit line can be a much better option than taking out a loan, or applying for yet another credit card. Increasing your credit line is good
for two reasons; improving your credit score, and making you more creditworthy on your credit report. Here are some simple steps to take when you want to increase your credit line:
1. Make at least double your minimum payment. This is one of the easiest ways to let company's know you're eager to pay off the debt, and will give them more reason to bump up your limit (remember, their goal is to keep you indebted for life (use this to your advantage).
2. Never, ever make a late payment. Late payments reflect negatively on your credit report, and also decrease the chances of increasing your credit limit. Make attempts to pay your bill right around the newest billing date, not the newest due date for extra brownie points.
3. Stay at least 50% under your credit limit. This looks good for potential creditors, but also gives you some leverage with the credit card company in question. They'll see how little you're spending, and encourage you to pick up the pace--you'll be in a much more attractive for better credit card offers.
4. Just ask for it. Some credit card companies simply need you to request a limit increase by providing bank account information and a reporting of income. If you've changed jobs recently for higher pay, consider doing this as soon as possible. Citibank offers a free increase about twice per year.
5. Clean up your credit report. All credit card companies conduct a random check on your credit report each year for updates; make sure you don't have any mistakes or errors that could be preventing a favorable report about you when they make their rounds.
6. Call every 3 months. 'Ask and you shall receive' is the name of the game, in some cases. 90 days is enough time for creditors to consider raising the limit, and persistence really does pay off.
1. Make at least double your minimum payment. This is one of the easiest ways to let company's know you're eager to pay off the debt, and will give them more reason to bump up your limit (remember, their goal is to keep you indebted for life (use this to your advantage).
2. Never, ever make a late payment. Late payments reflect negatively on your credit report, and also decrease the chances of increasing your credit limit. Make attempts to pay your bill right around the newest billing date, not the newest due date for extra brownie points.
3. Stay at least 50% under your credit limit. This looks good for potential creditors, but also gives you some leverage with the credit card company in question. They'll see how little you're spending, and encourage you to pick up the pace--you'll be in a much more attractive for better credit card offers.
4. Just ask for it. Some credit card companies simply need you to request a limit increase by providing bank account information and a reporting of income. If you've changed jobs recently for higher pay, consider doing this as soon as possible. Citibank offers a free increase about twice per year.
5. Clean up your credit report. All credit card companies conduct a random check on your credit report each year for updates; make sure you don't have any mistakes or errors that could be preventing a favorable report about you when they make their rounds.
6. Call every 3 months. 'Ask and you shall receive' is the name of the game, in some cases. 90 days is enough time for creditors to consider raising the limit, and persistence really does pay off.
|
|
Type in Your Comments Below