What Should You do if Your Credit Limit is Really Low?

| July 29, 2012

Most people when applying for a credit card already have a clear idea of the things they want to purchase or the amounts debts they will be able to settle through the new account.

It is very frustrating and disappointing to know that the credit card you just recently acquired does not allow you the amount of credit you need or you want to have from it.

If you happen to be among these people, then takes these steps to handle a credit limit that is way too low for what you actually need for a credit card.

Make it a Point to Check and Clean-up Your Credit Score

People who have formed a habit of over-borrowing; those who have applied for more than a single credit card, successful or not, within a short span of time; and those who have recurring delayed monthly repayments are most likely to fall in the group of people who, by some miracle, successfully acquired a new credit card but at the same time have really low credit limit.

Be sure to see check your credit report and see if there are any discrepancies. Slight discrepancies may mean a huge issue to your lender which would cause them to give you a really low credit limit.

Talk to your Credit Card Company

Especially when you are using the new credit card account for credit card shuffling and now time must be wasted, talk to your credit card company as soon as possible regarding the credit limit matter.

Know why the expected credit limit has not taken place and instead one that is really low is in effect. Most of the times, your lender would come up with such decisions due to your present credit score, outstanding credit, your history of repayment efficiency and of course, the company’s ruling laws and definition of which people may have this range of credit limit and which will fall under a different range of credit limit.

Once you know where the “problem” lies, ask them if there is anything you can do in order for them to raise the bar of your credit limit or if there is anything you can do for them to reconsider your cause. If going for the latter, be sure to be able to defend your cause and to live up to it once granted.

Get the Most out of Your New Credit Card

“Getting rid” of the newly acquired credit card simply because its present credit limit does not allow you to transfer your existing balance in full is not a very smart and profitable thing to do. While you can place the credit card somewhere, unused, the fact that you have acquired it will reflect on your credit report. Better make the most out of it.

Move your outstanding balance to the new credit card up to the maximum amount your limit allows. Settle the transfer fee and come-up with a spending plan that allows you to get your transferred balance settled before the regular APR starts kicking in.

This will not only help you settle your credit as soon as possible for less, it will also help you improve your credit score. In the long run you get more competitive credit reports and of course, the bar of your credit limit will be lifted.

Written by www.personalfinancenow.co.uk

Category: Credit Cards

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