Everyone is looking to create a more stable financial future for themselves today. We are getting smarter about how to use our money and how to create wealth for ourselves in the future. Because of this, many people shy away from using credit cards at all, let alone asking for an increase in credit limit. In reality, having a credit card that you use wisely can help you financially in many ways.

You can Improve Your Credit Score

Contrary to popular belief, asking for a higher credit limit will not always negatively affect your credit score, and in some cases it can raise your credit score. If you have good standing with your current credit card and you ask for a raise in your credit limit, it can benefit your credit score if you never get close to reaching it.

You can Gain More Rewards

If you take advantage of a credit card offer to open a new line of credit, you can gain all the benefits of the credit card’s offer and the rewards system that they use. That way, you can get more money back every time you use your credit card.

You will have a Safety Net in a Financial Crunch

“It is always a good idea to leave a little bit of open credit on a credit card that you use regularly, not only to improve your credit score, but also to give you something to fall back on when you are short on cash,” says Chris Mettler of CompareCards.com.

How can I Increase My Credit Limit?

Now that you are convinced that raising your credit limit is a good idea, here are some tips to help you do it. You will need to contact your creditor directly and make your pitch.

Open a New Credit Card with a Good Offer

Instead of going to your current creditor and asking for a higher limit, you might want to take advantage of a great credit card offer and open a new credit card. As mentioned before, you can take advantage of a good offer and get more from your credit card than you do from your current card.

Pay Your Bills on Time

If you are going to be asking for a raise in credit, you better make sure that you have the most spotless record that you possibly can have before you ask. Make sure that you pay all your bills on time and maintain the lowest balance possible. You might also consider resolving other past debts that may be affecting your credit score before you ask for a higher limit.

Give them a Good Reason to give you More Credit

If you speak with any creditor directly, you should have a good reason for wanting to increase your credit limit. You cannot tell a creditor that you want to increase your credit limit to buy a new Xbox, but instead you should have a plan for the money that will help you and your creditor in the long run.

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