Nowadays, a credit card is not just anymore a luxury service, but a necessity because more and more people are shopping directly with credit cards and debit cards rather than cash because it is much more convenient and simple. Obtaining credit cards has also been much easier and there is no need to pay astronomical annual fees, or enough money in the savings account to cover the loan. And all this means that people are starting to use this service more and more, that you can shop even if your account has a total cash value below zero.
Credit limit on credit cards
Usually, a bank or a private credit institution that issues these credit cards places a certain credit limit on the card, depending on the financial situation of the customer and so much borrowing every month. Usually this credit limit is several hundred or even a few thousand, and if the money they are borrowed is repaid within 30 days, then the customer does not have to pay any interest, but then the monthly interest rate is usually ten percent interest.
Well, then, if a person uses a credit card and has already borrowed money up to the limit of this limit, but he needs extra funds, then this question arises, how is it possible to increase this credit limit ? Usually, the bank sets this limit so that the client is not able to borrow illegitimately and would not get too big debt, but these amounts are often set very low, because the bank’s representatives can never know which customer will be able to repay the money in time and who will not be able to.
If you have always paid off your credit card in time, but you suddenly have higher payments
then it is likely that going to the bank branch or calling the bank representative will increase your credit limit quite simply. But if you are borrowing more and more over time and your monthly income has only fallen, then the credit institution is unlikely to take on additional risk and raise that limit.
If you know that you will need to increase your credit limit in the future then you can easily do it for a couple of months borrowing half of the available amount and returning it in the next month, so the bank’s algorithm will think you will borrow half of the set amount every month and thus will not give the bank extra profit.
Need to borrow a little more
However, if you are in a situation where your finances are bad, but still need to borrow a little more, then it is definitely possible to go to the bank and explain your situation to the bank’s representatives, who will definitely understand it and try to help you by offering either pick up this limit or borrow another type of loan with less interest payments.
In any case, if you have always paid off your debts in the past and you have been a loyal customer of the bank, the chance that the credit institution will raise the limit is much higher than if you only recently registered with this bank and have reached your limit within a few months. and immediately raise it.