How to Increase Your Credit Limit

Have you ever wondered why some people have a hard time getting approved for a bank loan or a credit card? Credit score determines a person’s worthiness of having access to credit.

That three-digit score is defined by lenders depending on the history of a person, as detailed on his/her credit report (a record of all his/her financial transactions), and the capacity to pay off a loan. The Credit Information Corporation collects data in the Philippines for Filipinos’ credit reports and scores.

If a creditor sees that you’re worthy of a loan, you will be approved for it but only within a credit limit, or the maximum amount that you can borrow from your chosen financial institution. This ceiling is also based on your information in the credit application.

Credit limit is a critical factor in your credit score and can influence your ability to apply for a loan in the future. Getting a credit limit boost can also help lower your credit utilization ratio, giving you more credit while still having the capacity to borrow more. As much as possible, you want a high credit limit, especially if your financial needs are aplenty and you need the flexibility for daily spending.

 

Increase Your Credit Limit Today

There are ways to boost your credit limit if you think that it’s too low or if you feel you’re worthy of a higher one because of your credit status. Financial institutions regularly review their clients’ records and will automatically increase those who pay off their loans responsibly. You can also apply for it manually by submitting documents to your bank, though it would still undergo assessment first.

While you wait for either your automatic or manual credit limit increase application, you can take proactive steps towards a better credit score to increase your credit card limit. Make sure you are following these best practices before requesting an increase:

  1. Take out a personal loan

One of the things a credit score is based on is your capacity to pay mortgages and when. Therefore, to build a reasonable credit limit, you must show that you are capable of paying back on time. You can do this by making small loans, which can be easily done through credit apps.

  1. Pay your loan and bills on time

Aside from loans, your capability and promptness in paying your bills on time are also assessed. Utility bills like electricity, water, or internet would reflect on your payment history and ultimately, your credit history. Late payments can certainly signal as a bad payment habit that may turn off financial institutions.

  1. Avoid maxing out your credit card

Since the use of a credit card can be treated as a loan, lenders may also look into it when possible. The card should ideally only be leveraged for productive purposes, not to finance your luxuries. No matter how large your credit card limit is, it’s essential to minimize its use to keep your credit rating good and not have a hard time paying back your purchases.

  1. Make sure your credit limits are reported correctly

You should regularly check your credit record to make sure that your limits are reported accurately. Errors can make it look like you’ve maxed out your credit card, which is bad news if you’re trying to have a good history. File a dispute to your creditor if you believe that there’s an error on your record and, additionally, ask them why the limit isn’t reported correctly.

 

An Easier Way to Get Credit

Aside from the possibility of being rejected, some of the issues regarding loan application are the requirements that aren’t easily accessible, and the time it can take. Credit card requirements are typically challenging to meet, and most applications take weeks to complete. These factors pose a problem for applicants who are in immediate need of financial assistance.

However, by taking advantage of a credit app, you can cut your application time in half and have access to credit with a high credit limit. By applying through Cashalo, you can borrow cash or shop in installments even without a credit card. You can get approved in as fast as 24 hours with a minimum requirement of just one (1) valid government-issued ID—it’s that easy! Just remember to pay back diligently on or before your monthly due date.

 

Take Control of Your Credit History

Having a good credit history is your gateway to boosting your credit limit, which could ultimately come in handy during your times of need. However, this should also coincide with being smart with finances and paying off bills and debts at the right time.

Through digital credit apps like Cashalo, you can start building your credit history by making loans depending on your financial needs. Cashalo’s installment shopping feature can additionally help you plan your purchases by knowing how much you can spend so that you can stick within budget.

Download Cashalo now and get the assistance you need today!