On a Thursday afternoon, Suhana Dhaiya received her credit card from ‘Only Your Bank’, and it lifted her mood to the skies. The bunch of offers that came with her credit card were so amazing; whether it was a reward points system, discounts on expenses or cashback on dining, she got it all. Also compare credit card is a good method to follow. 

However, while applying, she requested for only Rs. 50,000 as her credit card limit after taking into consideration her expenses and income. 

A few weeks later, she travelled to Malaysia. There she realized the credit card limit is low for her as she was spending in foreign currency. Ultimately she maxed her limits and ran out her cash as well and had to borrow from her colleagues. 

This situation could have been avoided by Suhana if she had got her credit card limit increased in advance. She wouldn’t have to carry the burden of debt and would have been able to maximize her credit card benefits. 

Like Suhana, many people want to get their credit card limit increased. Guess what, now is the best time to act so that you can maximize credit card benefits later. Nowadays, banks are providing lucrative credit card deals and offer to customers to allow them to make big purchases on credit cards each month. Some of the benefits of getting a higher credit card limit are: 

1. Credit Score: Many people believe in this myth that lower credit limit contributes to higher credit score. However, the truth is the exact opposite of it. A higher credit limit has a better chance of increasing your credit score than a lower credit limit. The amount of debt you are carrying versus the credit limit available has a lot of value in the calculation of credit score. A higher credit limit suggests you can handle or manage credit effectively. 
2. Safety Net: A higher credit limit means you have a better chance of handling financial emergencies. It will enable you to borrow a high amount when required and also provide you with considerable time to repay. With a higher credit limit, you can make sure to protect yourself and your family in case of a medical emergency as well. 
3. More Rewards: If you get a high credit limit experiment by paying through your credit card for purchases which you normally do with cash. For example, try to pay your utility bills through credit card or the payment of your insurance premium. All these expenses will help you accumulate reward points. The reward points earned on credit cards are available for redemption after they have reached a certain limit. You can redeem these reward points for discount deals on various transactions like online shopping, ticket booking or air or rail, dining discounts, movie tickets, etc. 
4. Easy to Monitor: Some people think that having multiple credit cards with a low credit limit is a safe option rather than having one credit card with a high credit limit. However, you must note that multiple cards are not easy to manage and monitor. The chances of debt going over the head are high as tracking of expenses for each one is difficult. 

Do keep in mind that a card with a high credit limit also comes with a chance of your credit card spending skyrocketing. Make sure you are diligent with your transactions and control your debt. 

Summary

One fine day Ridhvi Rajan received her credit card from ‘Top Priority Bank’, and she was elevated to see the number of offers, rewards and cashback she has received with it. Although, while applying for the card, she set her limit at Rs. 60,000 considering her expenses and income. But weeks later she had to travel to Japan where she soon realized her credit limit is about to be exhausted as she is spending in foreign currency. She ultimately had to borrow from her colleagues. 

Many people wish to increase their credit card limit, and the best time to do so is now. The following are few benefits of increasing your credit card limit: 

1. High credit card limit can generate you more rewards. Experiment it by using your credit card to pay for those purchases which you usually do with cash like utility bills, insurance premium, etc. All the expenses you do through credit card earn you reward points which can be later redeemed for exciting offers. 
2. It is easier to manage and monitor one credit card with a high credit limit than multiple cards with a low limit. 
3. It is a myth that a lower credit limit helps in credit score. In fact, a higher credit limit shows you are capable of managing credit. Besides the amount of actual debt and your credit limit is a crucial factor in calculating your credit score. 
4. A high credit limit will also provide safety while handling financial or medical emergencies.