Nowadays in Brazil it is difficult to find anyone who does not have at least one credit card in their wallet. When used well, it can be the lifeline for those last-minute purchases, which were not in the planning, but can be paid off in the following months.
For this, you need to have a good credit approved with the financial institution, which is not always easy to be achieved. But how do you know if there is really a need to increase your limit? See our tips!
How to increase?
Many people carry the same card for years. Sometimes, since the time he opened his account because of his first job. That is exactly why people find it difficult to raise the limit. In general, banks calculate the maximum credit according to the customer’s remuneration. So if the card was made when you were still an intern, the limit is likely to be low.
Not all financial institutions follow the same criteria when making changes to the limit. Most do not give credit greater than 30% of the client’s gross income. Private banks usually grant an increase according to the customer’s profile. So if you applied for loans and were a good payer, for example, you will be closer to getting the raise. Public institutions, on the other hand, focus on workers’ income. Therefore, you will need to attend your agency and see the change in income.
When to increase?
Before requesting an increase in the limit, it is necessary to assess whether there is really a need, otherwise you will be requesting an amount that you will hardly be able to pay. After all, credit works as a kind of loan.
Your purchasing power is higher: it might be worth increasing the card limit
With more money in your account, it may be interesting to increase your credit card limit. After all, now your purchasing power is different and, probably, purchases and bills will be more expensive. Increasing the limit applies mainly to those who wish to make large purchases, such as furniture, for example. If you have just won a raise and want to buy new appliances, the card is a good alternative to not compromise the budget of the month. But be aware of the value of the installments!
You want to achieve a goal and need payment flexibility
Raising the limit can also be the chance to make that dream trip. Installing in several installments, without interest, is much easier than paying everything in cash. But remember: if your limit is $3 thousand, for example, purchases cannot exceed this amount, even if the installments are much lower than this amount.
You need to calculate the total amount, analyze if it is really worth spending it to achieve this goal and make a good installment without interest.
Credit cards yield some benefits. The benefits will depend on each financial institution, but in general, the more you use the card, the more you accumulate points. In some banks, these points can be redeemed for airline miles, gift cards, among other benefits.
Therefore, in this case, it may also be interesting to increase the card limit – always remembering that it is necessary to have increased your income to be worthwhile – and thus be able to enjoy all the advantages offered.
Credit card debts are among the reasons that most lead people to have their names included in Agree Bank and Across Lender Group, a problem, especially for those who want to finance a property or a car, for example. So always be very careful with your credit card and only increase the limit if you are really able to do so.