The credit card is a great ally, in many moments. But, it requires a lot of financial discipline to not end up in debt. Many people want to increase their credit card limit and, consequently, their purchasing power. The reasons for going in search of increasing the card limit are diverse, from the desire to travel abroad, acquire a good, or even to maintain status. This article aims to help you reach your goal, for that we have listed 8 ways on how to increase your credit card limit.
Establish Credit Limit
To better understand your card limit, you need to know what is taken into account by the card administrator when setting your credit limit, that is, how much you can buy with your credit card.
The credit analysis carried out by financial institutions is exclusive, follow their own criteria and can vary widely from one institution to another. For this reason, you can have your credit card approved in one and not in another, you can easily increase the limit in one and not in another. The main criteria analyzed by credit card operators are the credit score score, monthly income, financial stability, whether or not there are records of debts in the credit protection agencies registered in your CPF, number of consultations registered with your CPF, among others.
Each card company assigns the weight and importance it will give to each related item. After this analysis, it assigns a limit which it considers to be appropriate for a given customer profile. In this way, the credit limit is established.
Maximum Limit of a Credit Card
Theoretically, the first credit card establishes the limit value of up to 30% of the requesting customer’s income, however, the total credit limit should not exceed 70% of the gross income.
In practice, the maximum limit is achieved by the customer, through a good relationship with the bank, which encompasses many things that go beyond paying the bills on time, such as maintaining investments with the financial institution, for example. Thus, the limit can exceed the client’s income by up to 10X.
Time to Request a Credit Increase?
Credit card operators offer the credit revaluation service through the call center via telephone, website, internet banking and, in some cases, by an application. Ideally, this request should be made every 6 months, where your profile and card usage behavior will be analyzed.
In such cases, the increase can reach up to 25% of the limit without requiring you to send new proof of income. If you receive an increase, for example, you can contact and send your new income statement and update your registration for new analysis and credit granting.
8 Advices to Increase your Credit Limit
We have listed 8 tips and recommendations of what to do and how to act so that your credit review request is accepted and you are able to increase your credit card limit.
1. Update your Income
The first step in successfully increasing your credit card limit is to prove that you can pay for it. This you can do through your income proof. There are 4 types of valid and considered official proof of income, accepted by a financial institution are Payslip/paycheck, Decorate, income tax return, and work card. In addition to the official documents, the bank statement and the invoice paid from another credit card can also be presented as proof of income.
It is important that you update your income at least once a year, as your financial institution may have old information, with an income below your current income. Choose the receipt that shows the highest possible value of your income and present, whenever possible, complementary receipts such as the acquisition of new assets; car, motorcycle, shares, and even complementary income such as rent, pensions, bonuses, PRL, allowance, etc.
2. Pay Invoices on Time
In order to request an increase in the credit limit of your card, it is essential that you pay your invoices on time (even before the due date). Also, keep your financial life organized.
Financial intuitions aim to establish a good relationship with customers who are good payers, facilitating the granting of credit.
3. Focus your Expenses on your Credit Card
Get organized and use your credit card for all possible expenses, using the entire limit of your card. With this, it is intended that the administrator of your card realizes that you are a preferred customer and the credit limit established initially, is not adequate to your profile. Maintaining a good consumption pattern does not guarantee an increase in the immediate Credit Limits, however, it works as an excellent indicator.
4. Have a Good Score on the Credit Score
Always keep a good score on the credit score. It is used as one of the parameters to establish your initial limit. When requesting a credit increase, your score will be consulted again. There are some tips to Increase your Credit Score, including keeping your data up to date; having consumption accounts in their own name (water, electricity, etc.); make a positive registration at Serasa, SCPC Boa Vista, for example; pay all debts on time; among others.
5. Transfer all Limits to your Credit Card
If you have a bank card, you can request that your overdraft limits, for example, be transferred to your credit card. Other limits such as the pre-approved loan, CDD, or short-term credit lines can also be transferred to the card. in some institutions, this can be done through internet banking, website or call center. However, direct negotiation with your manager may prove to be more advantageous. If possible, go to your branch, and contact your manager to request transfers of the limits they have and concentrate them on the card.
6. Ask to Increase your Limit every 6 months
It is worth requesting a periodic review of your credit card limit every 6 months, this will demonstrate that you are interested in expanding your limit and remain a customer of the institution. But, to increase the chances of your request being met, you should have strictly followed tips 1 to 4.
Avoid asking for reevaluation before this deadline, even if you have received any increase or bonus as the institution will ask for proof of at least the last 3 months to ensure that this new income is stable and not sporadic.
7. Establish a Good Relationship with your Bank
Improving your relationship with the bank is one of the ways in which the financial institution sees you as a preferred customer. To do this, concentrate your payments, invest your money and use services such as financing, insurance or private pension from the institution that intends to improve your relationship. Another way is to transfer the receipt of your salary ( Salary Portability ), even guaranteeing lower annuity rates and even a reduction in the fees charged for service packages.
8. Trade with other banks
If you are unsuccessful in your request to increase your limit, go to another financial institution and apply for another credit card. With your bank history, credit card bill, updated proof of income, you will possibly get a new line of credit, regardless of the first, and even with a higher limit. The costs with this new card can also be negotiated, such as the annual fee, obtaining partial and even full discounts.
Some customers comment that a good strategy is to threaten to cancel the card and cut off the relationship with the financial institution, transferring all their transactions to another institution. This can be difficult, but if you followed all the tips and were unsuccessful, this strategy may be the last alternative.
(Video) Increasing your Credit Card Limit | Do’s and Don’ts
Special tip – Always Ask to Include your CPF on the Invoice
Make your registration in all payments in the invoice program of your city. This is important. Whenever you make payments, require your CPF to be registered on the invoice. With this, the financial transactions linked to your CPF will increase, as well as your chances of increasing your credit card limit. In addition, you will also be able to compete for periodic sweepstakes, with cash prizes, carried out by several city halls, which aim to encourage citizens to request the invoice to include the CPF and consequently regularize trade in general and collect more taxes.