Is it possible to increase the credit limit?
The credit card limit can be increased or decreased. The change occurs at the initiative of one of the parties, the bank, or the client himself. As a rule, credit card holders are interested in increasing the approved amount. However, it is not available to everyone, but only to reliable borrowers.
What you need to do to raise your credit card line:
- actively use plastic for six months;
- always make monthly payments on time (and not only with this credit card);
- repay the payment in excess of the recommended one;
- try to use the entire limit provided for your card;
- actively use other bank products to show your loyalty;
- confirm the increase in your own income;
- close other bank liabilities.
When the lender sees that the client fully spends the amount available on his card and makes payments on time, he will offer to increase the limit. If not, make an application yourself and submit it to the bank through a manager. The application will be considered in the same way as the usual application for a credit card. Attach documents on current income and employment to the application, if you are not a salary client. Salaries can simply fill out a questionnaire without confirming their financial stability.
A decision will come in a few days. If the application is approved, you will be informed of the new size of the limit by SMS or by phone, the date of entry into force of the changes. Sometimes banks require you to go to the branch and sign an additional agreement to the current agreement.
If you have an overdue debt at another bank, your credit card will not be taken away and your limit will not be lowered. But you should not count on its increase at the initiative of the bank or at the request. Indeed, when considering such an opportunity, the client’s credit history must be taken into account.
If the decision to increase the size of the credit line is made by the bank, it will inform about this opportunity. You need to agree or refuse the announced amount. Some financial institutions practice SMS notification when the owner of the credit card responds to the bank’s offer with a reply message. The usual increase is 15-20% of the starting amount. Revisions occur every 4-6 months, or even less frequently.
To check credit card validity and eligibility, you can use a credit card checker.
How to check the current limit?
Of course, you can just open a bank agreement and see the approved amount. But do not forget that it can be changed while using the card. Therefore, we will use more reliable sources of information:
- Internet banking: personal account on the website or mobile application. This is the easiest and most convenient way to get information about the current product. Remote services are available in every bank. You need to log in with your credentials and go to the detailed description of the card.
- At an ATM or terminal. You need to have a credit card with you, which you must insert into the device and enter the PIN code. Then find the account balance section of the menu and open it.
- Call the hotline. To find out the credit balance in this way, you need to name the code word on the card or the full passport data. The operator will verify the identity of the caller and provide confidential information.
- At the bank branch. Be sure to take your passport with you, because such information is communicated exclusively to the owner of the plastic.
- Closing or decreasing the limit
- Sometimes the credit card holder decides to refuse it or lower the limit. Then he needs to pay off the debt first. In the first case, the full amount of the debt is paid, taking into account all possible payments (interest, subscription fee, etc.). Then the client writes a statement with a request to cancel the card account.
The procedure for closing a credit card takes 45 days, after which financial obligations to the bank disappear. Do not forget to order a certificate of debt repayment as confirmation. If after a while the creditor informs about the presence of a debt, even a penny, the client will be able to prove that he has already closed the card and does not owe anything.
Please note that the bank cannot close the credit card account on its own. This requires a statement from the cardholder.
The second option is to limit the credit line. In this way, the financial institution reduces its own risks in case of non-payment of debts. For example, a customer has stopped making monthly payments or is regularly delayed. Then the issuing bank decides to temporarily or permanently “freeze” the account. The debtor will be able to pay the debt, but it is already unlikely to pay off in the store.
The client himself can apply for a reduction in the credit line when he believes that such a balance amount is of no use to him. The only condition is that the current credit card debt should not exceed the amount requested by him.
Then fill out an application for a reduction in the loan amount at the bank branch and wait for a response. Basically, you are asking the lender to change the terms of the existing contract. But he has the right to refuse because he is also a party to the agreement. Although, as a rule, financial organizations meet halfway, satisfying the client’s desire.
Note that the bank identification (bincode) number plays an important role in successful credit card transactions.