In order to raise a low credit limit, you need to contact your creditor and ask for a higher limit. This can be done by writing your creditor a letter or calling on the phone. The creditor will then look at your amount of income and determine how much more credit can be extended. Before raising a low credit limit, you should look at your current situation and determine if this is the best decision.
Many different types of accounts have credit limits associated with them. You could have a credit limit on your credit card or on a store account. If you have a low credit limit and you need to make additional purchases, you will need to have the credit limit raised.
In most cases, the process of getting a low credit limit raised is very simple. Most credit companies want to offer you additional credit so you can charge more. When you charge more on your account, you will have to pay more money in interest in the long run.
This means that most of the time, you will simply need to ask your credit provider for a larger limit. If you are working with a credit card company, you should be able to contact the customer service phone number and speak to a representative about this matter. You can ask the representative for a larger credit limit and, many times, the representative will be able to accommodate your request immediately. In some cases, your credit provider might require you to request this in writing. If this is the case, you should write a letter to asking for a specific amount of credit line increase.
When you request a credit line increase, your creditor will look at a copy of your credit file. The creditor will also look at the amount of income you bring in to determine how much credit should be extended. The creditor will use ratios to come up with a credit line based on your situation.
Just because you can get your credit line increased does not necessarily mean you should. Sometimes, having a low credit limit can keep you from spending more money than you can afford. Assess your financial situation and determine if a credit limit increase is in your best interest.