So the benefits of having an increased credit limit is clear. You can find yourself improving your credit score drastically with a higher credit limit. You can find yourself having way more flexibility when trying to make larger purchases.
Needless to say, there's, going to be a lot of value dropped in this video and whatever your reason is for a credit limit increase. I'm gonna be teaching you in this episode on how to improve that significantly.
Now i'm, not selling anything at all. In this video it's literally just gonna be free knowledge. The only thing i ask for in return is for you guys to please drop a like down below in this video. That's.
Gon na help, this video get pushed out to other people and generally it's, just gonna help the overall american. So if you guys wan na help out the greater good and let this knowledge get out to the people, drop a like down below on this video, so first things.
First, if you want to start your journey in getting an improved credit limit, you have to start with the basic, and that comes down to having a good credit score anytime. You're in a position where you want to ask a credit card issuer or a bank, something that you desperately want.
You need to be able to show leverage and that's, going to come in the form of a credit score. When you develop your credit score and you're able to build trust with your credit card lenders, they will be able to increase your credit limit, often to whatever you want.
Let me explain it a little bit more clearly with this story. So say you have a little brother named jimmy and jimmy wants to get five dollars from you, so he can buy candy or whatever he wants, but he has to pay you back at the end of the month.
Every time you lend jimmy five dollars and he pays you back. Sometimes he pays you back early that five dollars you build that trust and that connection with him over time doing this for months and months, you end up raising that limit, which was originally five bucks to something like, maybe 10, 15 or 20, because you know that You can trust him, and you know he does a good job of paying you back.
This, in essence, is a very basic analogy on how the entire credit world works. You are essentially just borrowing money from these entities and your credit score is showing them a reflection of how good you are at repaying.
That money say little jimmy, sometimes doesn't, do a good job of paying you back. Sometimes he's late with that, sometimes he just doesn't pay you at all. Sometimes you have to go after him to get that money back whenever you do that, you lose that trust with him and you don't want to lend him any more money in the future.
If you want to increase your own credit limit with the banks, you have to show a good history of using their money repaying it back and also maintaining a good credit score. There are a lot of different factors that make up an individual's.
Credit score, but if you focus on the main thing of paying your bills off in full every single month, and you do that on a long-term, consistent basis, no matter what else you do oftentimes, your credit score will continue to increase, because those are the main things That banks and lenders are looking for now.
The second thing i wanted to talk about in trying to get a higher credit limit is by getting a new credit card. I know it sounds simple, but oftentimes people don't. Look at this as a viable option. If you're someone who already has a bad credit score, i know it can be tough trying to get a new credit card, make sure you guys watch my older video on three credit card methods that will get you instant approval for credit cards.
The reason why you want to apply for a new credit card when trying to get a higher credit limit increase is because, with that brand new card, you will be adding an existing line of credit onto your original account.
So, instead of trying to manually, approve and get credit limit increases on the accounts, you own, you could just think outside of the box and apply for a new credit card, and that will still improve your overall credit limit.
When you do this, though, you have to make sure that you apply for the right card. If you have a decent to good score, make sure that you don't apply for a beginner card that comes with a lower credit limit, apply for a higher tier luxury card.
If you think of an example as the chase sapphire reserve. This is a visa infinite card which actually comes with a minimum of a ten thousand dollar credit limit compared to a beginner starter card which may offer you something as little as two to five hundred dollars.
Applying for a higher tier luxury card means you're, going to get a higher tier luxury credit limit, and if you're focused on trying to improve that aspect. You want to make sure that you sign up for the right cards.
If you do plan on doing that, the links will be down below in the description now. The third thing you can do in order to increase your credit limit is by actually doing this manually. People often assume that you can't negotiate.
What your credit score is gonna be with the lenders, but that is far from the truth. If you & # 39, ve been using your credit card responsibly from 6 to 12 months, and you've, been able to show that you have a consistent history of paying those cards off oftentimes, you can contact the card issuer directly and get a Credit limit increase that way.
Take, for example, american express, as you can see on your screen. I can increase my credit limit just by requesting it on their website directly. If i don't want to do this, i can call the number on the back of the card and also talk with a live representative and let them know exactly hey.
I also want to increase my credit limit when you're. Doing it online it's, a lot easier because you don't have to explain your situation and the algorithm will automatically decide if you do get a higher credit limit increase.
Although we've had the recent pandemic and banks and credit card issuers have still been pretty sensitive to people getting higher credit limit increases, we have been seeing a lot of consumers still getting approved.
For them. American express is probably the most generous credit card issuer that oftentimes gives you the highest credit limits among most cards. If you are trying to get a higher credit limit, your best chance is going to be with american express and one of their credit cards in the past.
Before the pandemic. You can find yourself doing the american express triple credit limit increase where you could literally multiply your current credit limit by three and they would automatically approve it on the topic of trying to increase your credit limit manually.
If you do decide to not go on the website and you try to contact them through the phone, you want to make sure that you do these few things in order to improve your chances significantly when trying to get a credit limit increase.
First of all, it all starts with timing. So if you have recently paid off your entire statement balance, if you don & # 39, t have any type of debt with that specific company. That's, a perfect time to call them.
Another thing that you want to be mindful of is exactly how much you want your credit limit to increase, and you also want to give a valid reason. So if i call up one of the competitors, for example, i would just say hey, i want a credit limit increase, because i want to help my credit score.
That's, a valid reason. You could also mention to them hey. I want to increase my credit limit because i have a bigger purchase coming up. I don't want it to impact my credit score. As you can see, i've, been paying off my card in full every single month, and i just want to start being able to increase my limits among my cards.
If those reasons don't seem to budge the customer rep, you can also mention any competitors, like hey uh competitor x, decided to increase my credit limit for my cards by a couple thousand dollars. Do you think you can do that because they did that? I feel like i want to use my credit cards with them.
More often anytime, you mention a competitor. This oftentimes will get them to do what you want them to, but it all does start with the basic thing that i've mentioned in the beginning of the video, and that is your credit score.
If you tell them look my competitor increased. My credit limit by a couple thousand dollars, and they see that, on your account, you have a 500 credit score. They're, going to be happy that that they did that for you and that you choose to spend their money with them.
In these instances you want to be very strategic and you want to know exactly the leverage that you hold for yourself in trying to get these things accomplished now. Last but not least, if you are working towards a higher credit limit, you can often look into something called business credit cards.
So take my word for it. Having a business credit card means you're, going to get a higher credit limit, but getting approved for a business credit card during this time is a little bit more difficult than usual.
American express is still one of the best credit card issuers that aren't that hard and strict about getting approved during these times. So if you are looking to get a business credit card, you do have a business or even if you don't, have a business watch.
Some of my older videos on youtube talking about how you can get a business credit card without having a business. All these things are free resources on youtube and if you're trying to get a credit limit of 100 200 hundred or even half a million dollars, these are all things that even the pros do in order to increase their credit limits that you Guys can do today now.
Thank you all so much again for watching don't forget to check out my other videos on this channel and links for all the credit cards down below in the description. If you guys want to apply for them.
If you do apply for those cards, it helps out my channel significantly at no cost to you, so for anyone who does apply for a credit card using those links, i just want to say thank you now other than that don't forget to Follow me over on instagram and join our facebook group over at the credit society.
This is a great community filled with great members, and we'd love to have you guys there make sure you fill out the questionnaire it's. A free group you don't have to pay anything for it and it's, just a community where we have fun and share information.
So thank you all so much again for watching this video and until next time, peace out