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7 Simple Ways to Increase Your Credit Card Limit
there are many people right now who would like to have a higher credit card limit.
the obvious reason for this, is that a higher credit card limit enables the purchase of otherwise unaffordable merchandise and services.
first and foremost, if you want to successfully increase your credit card limit, you need to remember that to get a higher credit card limit, you must abide by the terms and conditions of the credit card company or bank.
below are 7 other ways you can get a higher credit card limit.
? the most important thing to do for getting a higher credit card limit is to prove your credit worthiness. this is the first thing that banks and credit cards companies look for when giving a higher credit limit.
? attract positive attention from the credit card company or bank by paying finance charges once in a while. obviously, this is not advisable on a repeating basis and should only be used as a last resort to increase your chances of getting a higher credit limit.
proving to credit card companies and banks that you are good borrower can be a convincing way to get a higher credit limit. but be careful because this strategy also means that you will be paying finance charges, which can accumulate in a hurry.
and always remember, a higher credit card limit means greater purchasing power, but it also increases the risk of your having to pay greater interest charges and other processing and late fees.
? always spend within your credit card limit because doing so means that you are capable of controlling your expenses.
? use your credit cards regularly. don?t keep your cards for emergency use only. if you use your credit cards sparingly, banks and credit card companies will be unable to understand your spending and payback behaviour.
under these circumstances, most banks and credit card companies will be reluctant to give you a higher credit card limit.
? never make minimum payments. instead, try to pay for the entire outstanding amount. this will usually give you a better chance of getting a higher credit card limit.
? avoid late payments as much as possible. not only will your increase payment increase, but you may also have to pay an additional fine for not clearing bills on time. this will also dim your chances of getting a higher credit card limit.
? the best and simplest strategy for getting a higher credit card limit is to use your credit card wisely. always keep in mind that credit card companies keep a record of your transactions and payment patterns, so always pay on time.
the bottom line is that your performance in the records of banks and credit card companies will determine whether you?ll get a higher credit card limit or not.
about the author
carmin oliver owns http://www.freeroller.net . he offers free, high quality resources and guides on credit cards. he also offers tools for finding a wide range of financial services including secured and unsecured cards, student and business cards, from the most reputable companies in the industry. visit carmins site today: http://www.freeroller.net/
article source: http://ezinearticles.com/?expert=carmin_oliver
How To Check Your Credit Rating and Know Its Affect On You
you may not know it, but every time you take out any kind of loan or credit or pay something back, it gets counted on your credit rating. who keeps a record on you will vary according to where you live, but the big three credit reference agencies are experian, equifax and trans union. they will provide your credit rating to any company that is thinking of lending you money.
all the debts you currently have are included in your credit rating. there is a history of all the debts you?ve had in the past ten years or so, and special emphasis is put on anything that has gone wrong. defaulting (never paying) on any debt will ruin your credit rating completely. borrowing a lot before you start paying anything back will make you look like a very bad risk, and so will going all the way up to (or even over) your limit on a credit card.
it is also worth considering that the credit reports of anyone you live with may be linked to your report, and could reflect badly on you ? your wife or husband?s credit rating is tied to yours quite closely.
the most common method of coming up with your rating is called a fico score, named after the fair isaac corporation who invented it. your current credit rating status is prioritized, in this order:
* payment history, which comprises a whopping 35% of your fico score. this includes everything, from the timeliness of your payments, to the number of bills you have failed to pay, to the bills that have been forwarded to collection companies.
* outstanding debt, which comprises 30% of your fico score. this would tell the lending company how much of your existing credit is being eaten up by existing loans.
* length of credit history, which comprises 15% of your fico score. if you have been paying a loan of significant amount over a long period of time, then this would fare well with the lending companies as it establishes a level of commitment they would want to see.
* credit balance, which comprise 10% of your fico score. credit balance is the difference between the current amount of your existing loans and the original amount of the same. the bigger the balance, the lower your fico score.
* recent inquiries, which comprise 10% of your fico score. an inquiry is equivalent to a loan application. the more inquiries you have, the lower your fico score would be.
why is your credit rating is important? because any time you get turned down for a credit card or any other loan, the chances are that it was because of your credit rating. companies giving out small loans are far more likely to rely completely on this rating than to bother checking your income, and a worse rating will mean that you are offered a higher interest rate.
your credit rating is important when you get car loans and mortgages too. you don?t want to find a house you love only to get turned down for the mortgage thanks to your habit of paying your credit card bills late.
there will always be those times when we would find ourselves in a financial rut. these are the times when bills become due almost simultaneously, when satisfying them is rendered impossible by the other financial demands of our life.
acquiring loans would help bail us out of these difficulties. in certain cases, loans are quite necessary for our survival. it would be to our best interests that securing a loan be easy and almost guaranteed. a good fico score would help achieve this, and give us a better position to resort to loans whenever the needs arises.
so how do you to check your credit rating? credit reference agencies can?t hold your information on file without telling you about the information they have on you. write all three credit reporting agencies a letter and, if you have to, pay a very small fee to have them send you the full credit report they have on you. actually, new laws allow you to get a free copy of your credit report once per year. contact each credit reporting agency for details.
you can then check over your credit rating, and send a letter back to the agency telling them about anything that you think isn?t right. you might find that an error has made you look bad when it wasn?t your fault. they will include anything you send in your file. if the error turns out to be resolvable since it was not your fault, your credit report will be corrected.
greg lietz is a freelance writer and internet businessman. he owns the website http://www.freeroller.net where he provides free information about eliminating credit card debt, credit scoring, rebuilding your credit score, repairing your credit and general information and truths about having and using credit cards.
article source: http://ezinearticles.com/?expert=greg_lietz
7 FAQs when You Apply for a Credit Card
there are so many credit cards out there to choose from that deciding which one to get can feel really daunting. what makes one offer better than the hundreds of others you?ve seen? here are top 7 faqs to finding the right credit card:
1. are you a student?
if you are, then you?ll be better off with a student card. your application is likely to get accepted without problems. it would be best to contact the bank where you have your student account before you do anything else.
2. are you transferring a balance from another credit card?
if you are, then you need to be looking for a card with a low apr on balance transfers. apr is the acronym for annual percentage rate. apr is the cost of credit, expressed as a yearly interest rate. however, do be careful of credit card offers that promise 0% introductory rates for say 6 to 9 months. there may be a catch somewhere!
3. do you intend to make new and large purchases?
if so, then pay more attention to the apr for purchases, which is usually entirely different to the one for balance transfers. you should also look at what kind of grace period different cards offer, so you don?t end up paying interest on your purchases straight away.
also called a grace period, a free period lets you avoid finance charges for a specified time before you are required to start paying your balance. without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. if your card includes a free period, the issuer mails your bill at least 14 days before the due date so youll have enough time to pay.
4. do you pay off your balance in full every month?
if you have a lot of money or you only keep a credit card for emergencies, then you might just pay it all off each time you get the bill. if you do, then you?re in a position where you obviously don?t need to worry about the interest rate much at all, since you won?t be paying any interest (make sure there?s a grace period, though).
5. do you need to consider other fees?
many issuers charge annual membership or participation fees. some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. some charge a monthly fee whether or not you use the card.
6. need good customer service support by the issuing bank?
this can be an important factor especially in situations of lost card or a charge that you wish to dispute. you want customer service support that is friendly and helpful. choose a reputable bank that has excellent call center help.
7. which reward program is suitable?
you may wish to consider the card that offers you the best reward programs or frequent flyer points for your needs.
in conclusion, there will be plenty of offers of credit card deals and pre-approved credit card application forms in your mail. however, do take the time to shop around for the right credit card for yourself.
elaine lim used to be a research analyst from a bank and now hopes to share her expertise through publishing information on consumer credit. she aims to help others in their financial planning, debt management and credit repair. for more free tips, articles and resources, please visit http://www.freeroller.net
article source: http://ezinearticles.com/?expert=elaine_lim
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