Increasing Your Credit Limit

There are times when you need help paying your bills because of an unexpected expense, due to a car breakdown, or illness, or, whatever. First of all, don't feel badly about this. It happens to most of us at one time or another, when income just will not meet outgoing expenses. At those times you may want to consider asking your credit card company for an increase in your credit card limit to help you through a difficult time, but note that this will not necessarily be an automatic increase, and it does depend on your credit history with the company.

So keep in mind during the good financial times that credit card companies will consider the following before increasing your credit limit.

• Your credit card worthiness.
  
• Do you really look like a good proposition to them?
  
• Have you paid finance charges on your card in the past? (this attracts positive attention from the credit card companies, provided you pay back on time!)
  
• Did you pay them back regularly?
  
• Have you stayed within your credit limit?
  
• Have you used your card regularly to prove you can stay within the credit limit and pay back on time?
  
• Do you pay more than the minimum each month? Obviously it is better if you can pay the balance in full each month, but most of us have months where that just is not possible.
  
• Avoid late payments whenever you can. If you are going to be late, then a call to the credit card company to explain the situation might just go in your favor.

 So to summarize, the best and simplest strategy to being able to increase your credit card limit, when times are tough, is to use your credit card wisely, keeping in mind that credit card companies keep a record of your transactions and payment pattern so they always know payment habits. Try not to carry a balance, but if you do, try to pay more than the minimum each month, and regularly. Your performance in dealing with your bank and your credit card companies will determine whether you’ll get that increased limit on your credit card or not. Then phone them up, explain the situation, and see if you can get that increase. And good luck to you!