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    Increasing Credit Limit

    May 7th, 2010 by
  • Nature of change

    There is an initial credit limit that is sanctioned for you as a credit cardholder but often this might not be valid for a long period of time due to the changes seen in your financial position as well as role in your career.

    Raising the limit

    This can lead to a position where the bank issuing the card will be ready to increase the credit limit present on your card. You will then be able to spend a larger amount using your card based on the track record that you have built up.

    Conditions to be fulfilled

    You will need to satisfy various conditions that the bank has in order to qualify for the higher limit. This usually includes a higher income due to advancement in your career and/or a good track record in repayment.

    Situation where required

    There are cases where the initial credit limit is low because the card was issued when the person was starting in a job or when he/she was a student. So, this naturally requires a higher limit at a later stage as the situation improves on the professional front.

    Not to be used

    Just because the bank has issued a higher credit limit, it does not mean that you have to exhaust the limit. The usage has to be as per the requirement and the affordability, and this has to be separated from the availability of the credit limit.

    Published on May 7, 2010 · Filed under: Credit Card 5points; Tagged as: , , ,
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