One of the most important lessons I learned I didn’t get as a child. I never learned about credit until I was in my mid to late 20s. Even to this day my parents still don’t use credit. In this article where going to re-frame what credit cards are and how to get increases on your credit. Let’s talk about it…
What is a credit card really? A lot of people look at it as more debt and spending money you don’t have. They don’t trust themselves with the card. The way I look at credit cards are that they are just prepaid loans. Its money the bank gave to you to use but you will have to pay it back. No different than going into the bank and asking for a loan for a car. The only difference is the money is already approved and can be increased and decreased. Let’s talk about ways to increase your credit limit.
Here is what I did step by step. I messed my credit up before I even knew what it was. So, for me I had to fight out of the whole. My own bank wouldn’t give me credit card. So, I applied for a few cards but the one that gave me a shot was capital one. They gave me a $300 credit card. What I was doing at first was maxing the card out then paying it off, not realizing that was hurting my credit. Once I got a little smarter, I kept my balance around 30% or lower. After 3 months I applied for an increase and got denied. I applied again in 6 months and they increased it to $500. Then I waited another 6 months and applied again, and they gave me $1000. So, I waited a year and asked for another increase and they gave me $4000. After that out of nowhere they increased my limit to $5500 I was like wow okay. In about a year after that they increase me again to $8000. But you get the point and see the trend every 3 to 6 months apply for an increase.
These are some of the things you should be doing to increase your chances of getting that increase.
1. Keep your credit limit balance under 30%.
2. Make all your payments on time.
3. Pay more than the monthly amount.
4. Ask for an increase ever 3 to 6 months.
During your life, never stop dreaming. No one can take away your dreams.