How to Increase My Credit Card Limit? And Fees on A Credit Card - Card Delta

How to Increase My Credit Card Limit? 

Your credit limit refers to the amount of credit available to you on your credit card. However, to maintain a good credit score, it is advisable to spend no more than 30% of your credit limit. So, for example, if your credit limit is Rs. 60,000, make sure that you do not spend more than Rs. 18,000 every month. Consistently spending more than 30% of your limit signifies that you are short of credit or that you do not have spending discipline.

As you move up in your career, your income may increase so does your eligibility to get a higher credit limit. If you have been prudent in repayment and have not defaulted, you can request for an increase in the credit limit. After you have made a request, the credit card company analyses your past payment record and approves the increase in the credit limit based on your income and eligibility.

Increase in credit limit helps you spend more and keep your credit utilization ratio on a good level. If you feel, you are eligible for an increase in the credit limit, approach the credit card issuer to approve your request.

Fees on A Credit Card

Though there are lifetime free credit cards, they only have a handful of benefits. But getting a credit card with all the fees makes you eligible for a greater number of features and benefits. Following are some of the fees levied on a credit card.

Annual fees

When you are approved for a card, you are charged an annual fee as the cost of owning the card. This fee is automatically added to your bill on an annual basis. Some cards do not have an annual fee.

Late fee

If you do not make your minimum due payment in time, you can be charged a late fee. Make sure that you mail your cheque well before the due date or pay your bill online.

Other fees

Credit card companies charge a variety of other fees which may include charges for exceeding your credit limit or returned cheques.