Limit Up, Score Intact: Smart Moves to Boost Your Credit Ceiling with Confidence

News Summary: Increasing your credit limit can be a smart money move—provided you do it correctly. A higher limit not only increases your credit utilization ratio and your ability to borrow. However, mistakes can lower your credit score. Here's how to ask for a limit increase without setting off warning signals.

Smart Strategies:

Build a good payment history: Make payments on time and in full for at least 6–12 months before applying.

Keep your usage minimal: Ideally less than 30 percent of your current limit.

Record income increase: A rise or another income stream can support your claim.

Use your card often: Demonstrates prudent usage and fosters lender trust.

Accept pre-approved offers: If your bank pre-approves an increase in your limit, review and accept if it is suitable for you.

Don't make repeated requests: Excessive requests can indicate credit desperation and damage your score.

Application Tips:

Use via your bank's website, mobile app, or customer service.

Be equipped with up-to-date income documents and a history of expenses.

Don't raise your limit so you can spend more—put it towards building your credit history.

Sources: Mint, Livemint, U.S. News, Money View, MSN News, Moneycontrol