card credit http://fimendurance.com/ Tue, 08 Mar 2022 00:26:16 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 https://fimendurance.com/wp-content/uploads/2021/10/icon-5-120x120.png card credit http://fimendurance.com/ 32 32 3 ways to increase your credit limit https://fimendurance.com/3-ways-to-increase-your-credit-limit/ Mon, 07 Mar 2022 20:05:44 +0000 https://fimendurance.com/3-ways-to-increase-your-credit-limit/ NEW YORK – March 7, 2022 – (Newswire.com) iQuanti: Your credit limit is the maximum balance you can put on a credit card. This can affect your spending habits – if your income has increased, your credit cards may no longer have a high enough limit for your spending. In addition, your credit limit has […]]]>

NEW YORK – March 7, 2022 – (Newswire.com)

iQuanti: Your credit limit is the maximum balance you can put on a credit card. This can affect your spending habits – if your income has increased, your credit cards may no longer have a high enough limit for your spending.

In addition, your credit limit has an impact on your credit score. Increasing your credit limit relative to your spending can lower your credit usage and increase your score.

Wondering how to increase your credit limit? Read below to learn three strategies.

1. Get a new credit card

Getting a new credit card will immediately increase your total credit limit. Plus, it could broaden your credit mix — another factor that impacts your credit score. Plus, new credit cards often come with great cardholder offers, which can be another benefit of having multiple cards in your wallet.

However, don’t ask for new credit cards too often. Each request triggers a thorough investigation (a formal credit check). This temporarily lowers your score. If you have too many in a short period of time, a lender may deny your application for a new card.

2. Ask for a raise

If you don’t want a brand new credit card, you can ask your lender to increase your current credit limit. You can either apply online or call the number on the back of your card and ask for a raise.

This method may work best if you want to minimize the number of cards you need to manage. Likewise, you may want to ask for a raise instead of getting a new card if you use a particular card for most of your spending.

Now asking for a raise triggers a thorough investigation, just like asking for a credit card. Therefore, you should only ask for increases sparingly, even between different card companies. They will see your previous difficult requests and may deny you if there are too many in too short a time.

Also, be sure to update your earnings with your issuer before applying. A higher income can improve your chances of approval.

3. Wait for an automatic increase

Your credit card company may review your account from time to time, usually semi-annually or annually. They may give an automatic raise if you have a good payment history and your credit score has gone up.

Either way, there is no risk of a difficult investigation or denial. Instead, the lender conducts a soft investigation (they can’t do an in-depth investigation without your consent) and will automatically increase your score if you meet their criteria. This makes waiting the safest method.

Again, be sure to regularly update your income and other financial information with your card company. If your earnings have increased since opening the account, your chances of getting an automatic increase may improve.

Increase your credit limit and improve your score

Getting a credit limit increase is an important step in your financial journey. This indicates that you have used your cards responsibly and can manage your debts well.

These positive habits also directly impact your credit score. Each time your limit increases, your score can increase along with it, helping you climb the financial ladder and achieve your goals.

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3 ways to increase your credit limit

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Differences between debit, credit and “pay later” cards https://fimendurance.com/differences-between-debit-credit-and-pay-later-cards/ Sun, 06 Mar 2022 20:06:13 +0000 https://fimendurance.com/differences-between-debit-credit-and-pay-later-cards/ Adhil Shetty, CEO of BankBazar.com, says, “While debit cards let you access your existing funds in a savings bank account, credit cards let you access credit. Line of credit cards or “pay later” cards are the ones that let you make purchases and then split the bill into three or more installments.” For example, “pay […]]]>

Adhil Shetty, CEO of BankBazar.com, says, “While debit cards let you access your existing funds in a savings bank account, credit cards let you access credit. Line of credit cards or “pay later” cards are the ones that let you make purchases and then split the bill into three or more installments.”

For example, “pay later” cards allow you to spread your monthly expenses evenly over three months at no additional cost. On the other hand, Uni “pay later” cards go beyond the transaction level. In the case of Uni, you can choose which transactions you want to pay in full and pay the rest over the next three months. “Pay later” cards issued by fintech companies often focus on millennials who are digitally active but lack a credit history. Fintech companies give them these cards with a credit limit as low as 2,000. However, the card limit increases dynamically over a period as they spend more and pay off the bill on time.

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Credit cards vs “pay later”

Pay later cards are an emerging form of small loans bundled into a card, aimed at millennials and Gen Z customers. In contrast, credit card issuers have specific predefined eligibility criteria. This way, consumers with no credit history or those with very meager incomes can get a “pay later” card. However, obtaining a credit card depends on the individual’s creditworthiness, repayment behavior and income stability.

Raj Khosla, founder and managing director of MyMoneyMantra.com, says the extended credit limit on a “pay later” card is usually relatively lower than that offered on a credit card. On a “pay later” card, the credit limit starts from 2,000 and can go up to a maximum of 10 lakh, while credit limits on a credit card usually start from 20,000. There is no upper cap on credit card limits because the lender can increase your credit limit based on your usage, income, and frequency of spending.

“Currently, ‘pay later’ cards only offer the option of splitting the transaction amount into three equal installments, while credit cards offer the option of longer equivalent monthly installments (EMIs) that can be s ‘extend up to 36 months,’ Khosla added.

Also, with “pay later” cards, you don’t have to pay recurring interest, i.e. there are no interest charges applied on new purchases during that you make a partial refund of the invoice. However, in the case of credit cards, if you make late or partial payments, interest is charged from the date of the transaction. Sachin Vasudeva, Associate Director and Head of Credit Cards, Paisbaazaar.com, says the biggest drawback of a credit card is the high interest rate on revolving credit. This means that even a few missed payments can send you into a spiral of debt. “Credit cards with revolving credit interest rate finance charges are significantly high at 30% to 45% per year, while “pay later” cards charge 20% to 30% (non-renewable) in case of non-payment,” says Vasudeva. .

Yet, the benefits and rewards offered on a credit card are generally higher and more diverse than the benefits available on a “pay later” card. Pay later cards offer approximately 1% cash back on timely bill payment; Credit cards offer several other benefits such as cash back, rewards points, discounts and airline miles. says Khosla, “Users can choose the type of credit card based on their spending habits to get maximum benefits, while the benefits of ‘pay later’ cards are similar across the board.”

Debit Cards vs Credit Cards/Pay Later

Debit cards, credit cards, and “pay later” cards are all different payment options. “Comparing debit cards with credit or pay-after cards is completely unfair, as the former represent your money in bank accounts, while credit and pay-after cards are a form of unsecured lending. which is grouped in a plastic (card). “In addition, after transactions made with credit cards and “pay later” cards, you are still obligated to honor future bills. In contrast, debit card payments mean that you settle the transaction immediately after have spent.

Vasudeva says, “Because debit cards are directly linked to your savings or checking account, they are best used for small expenses and ATM withdrawals, usually those you can prepay without deplete your savings. Debit cards allow you to withdraw cash from ATMs for free. But withdrawing money using a credit card or “pay later” card will incur high interest rates because these transactions are treated as cash advances.”

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You can use these cards at online and offline stores, ATMs, and point-of-sale (PoS) terminals. The benefits and rewards associated with these cards are purely subjective to the nature of the transaction. To get the maximum benefits, you should use these cards interchangeably depending on the nature of the transactions you make.

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A man faked his salary to get a higher credit limit to buy bitcoin https://fimendurance.com/a-man-faked-his-salary-to-get-a-higher-credit-limit-to-buy-bitcoin/ Tue, 08 Feb 2022 08:00:00 +0000 https://fimendurance.com/a-man-faked-his-salary-to-get-a-higher-credit-limit-to-buy-bitcoin/ A man using his laptop with a credit card in hand. (PHOTO: Getty Images) SINGAPORE — A man who wanted to invest in bitcoin forged payslips to reflect a higher salary to get a credit card with a higher credit limit. Lin Mingzhong, 48, was jailed for six months on Wednesday (February 9) on one […]]]>

A man using his laptop with a credit card in hand. (PHOTO: Getty Images)

SINGAPORE — A man who wanted to invest in bitcoin forged payslips to reflect a higher salary to get a credit card with a higher credit limit.

Lin Mingzhong, 48, was jailed for six months on Wednesday (February 9) on one count of forgery, to which he had previously pleaded guilty.

In 2020, Lin started investing in bitcoin on the online cryptocurrency trading platform “eToro” for additional income. He was then employed by Singapore Green Engineers, earning a monthly salary of $6,000.

In order to get the funds for the investment, he decided to apply for credit cards from different banks. Around March 15, 2020, he applied for a credit card from Citibank. Since he had to declare his monthly salary, supported by payslips, he decided to falsely declare his salary to be $8,100 in order to obtain a higher credit limit.

Lin decided to falsify two payslips with the intention of deceiving Citibank for this purpose.

Since he had previously worked with Mediacorp in October 2019, he used a company payslip as a template to mirror his fake salary. Using his computer, he made two copies of the payslip and edited them to look like they had been issued by Singapore Green Engineers in January and February 2020.

It also replaced Mediacorp’s letterhead, changed salary dates, company name and other payslip details.

Fake reported salary to get higher credit limit

On March 15, 2020, Lin logged into Citibank’s online banking portal to apply for the credit card. He filed an application and incorrectly stated his monthly salary was $8,100. He also uploaded the falsified payslips to support the claim.

Citibank granted Lin a credit card with a credit limit of $32,400, four times his fake monthly salary. Lin received this credit card in the mail on March 24.

If he had declared his true monthly salary, Lin would have obtained a credit card with a credit limit of only $24,000.

Lin immediately used his new credit card to buy $31,472.13 worth of bitcoins on eToro on March 26. He made no payment for that amount of money and Citibank canceled his credit card on June 15.

As of August 17, 2020, Lin had accrued an outstanding balance of $33,638.95, including interest.

Counterfeits cost the bank a loss of more than $9,000

Lin’s forgeries caused Citibank to suffer a loss of $9,638.95 – the outstanding credit card balance minus the $24,000 credit limit that Citibank allegedly extended to Lin.

Lin has since declared himself bankrupt because he was unable to repay credit card debts he incurred with Citibank and other banks.

His breach was discovered in August 2020, after Citibank’s Country Fraud Risk Management arm conducted an internal investigation into his default on credit card debt.

Citibank contacted Singapore Green Engineers, which revealed that Lin’s monthly salary was only $6,000.

A Citibank official then filed a police report against Lin on August 13, 2020.

Stay informed on the go: Join Yahoo Singapore’s Telegram channel at http://t.me/YahooSingapore

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What is a credit limit and does it matter? https://fimendurance.com/what-is-a-credit-limit-and-does-it-matter/ Tue, 08 Feb 2022 06:33:27 +0000 https://fimendurance.com/what-is-a-credit-limit-and-does-it-matter/ If you apply for or use a credit card, you may be wondering how much you are able to spend when using that card. This is called a credit limit. We take a look at what a credit limit is and what it means. Definition of credit limit: what is it and where is the […]]]>


If you apply for or use a credit card, you may be wondering how much you are able to spend when using that card. This is called a credit limit. We take a look at what a credit limit is and what it means.




Definition of credit limit: what is it and where is the term used?




A “credit limit” is the maximum amount that a lender will lend to you through one of its credit products. The term is widely used in the financial products market and can apply to all types of loans, such as home, auto, personal or margin loans and credit cards.




What is a credit limit on credit cards?




When you take out a credit card, you are taking out a loan from a financial institution. You also agree to repay this loan under certain conditions. Usually, credit cards are set up so that you continually borrow a portion of the loaned amount and repay it on a schedule, and you are charged interest based on that repayment schedule.




The credit limit is the amount of credit (money lent) that you and the lender have agreed to use on this card. But it is important to know that this does not automatically mean that the card will stop working when its credit limit is reached. It depends on the loan agreement you have with the financial institution. (Read more about that, below.)








How does a credit card credit limit work?




A financial institution may offer credit card products with different credit limits, such as a $10,000, $20,000, or $50,000 credit limit. Let’s say someone chose a card with a credit limit of $10,000. This means that the total amount of money a person can borrow with this credit card would be $10,000 in total. That person would apply for the credit card, and the financial institution would assess their application and decide whether or not to issue the card and credit limit to the applicant, taking into account factors such as their credit rating. If the application was successful, that person would receive the credit card (or a virtual version of it) and could use it to borrow up to $10,000 for purchases.




A hypothetical example to explain how this might work is below:




Cover image source: Nattakorn_Maneerat/Shutterstock.com.

Joe is approved for a credit card with a credit limit of $10,000. He can track his spending on this card through his bank’s mobile app. He will use the card to purchase items for his home office renovation.

Before Joe starts using the credit card, he checks his banking app. The credit card balance summary on its app shows:

  • Balance: $0
  • Available: $10,000

On Monday, he buys a computer worth $3,000 using the card. The credit card balance summary on its app shows:

  • Balance: – $3,000
  • Available: $7,000

On Tuesday, he buys a $1,000 desk and a $4,000 couch. Balance summary:

  • Balance: -$8,000
  • Available: $2,000

On Wednesday, he pays $2,000 to his credit card because he knows he needs extra funds on the card to buy more items. Balance summary:

  • Balance: – $6,000
  • Available: $4,000

On Thursday, he buys a podcast production system worth $4,000. Balance summary:

  • Balance: – $10,000
  • Available: $0

Fees and charges would also apply, depending on the terms and conditions of the credit card, and would gradually be reflected in the statement.

With $0 available on his credit card, whether or not Joe could continue making other transactions — and go over his credit limit — would depend on the particular policy he took out with a lender and the terms. general rules that apply to his credit agreement. .








Can you go over your credit card credit limit?




Whether or not you can spend more than your credit limit on your credit card depends on the credit agreement you have with your financial institution. It’s a good idea to find out what the financial institution’s rules are regarding “over-limit” spending before you sign up for a credit card.




Some agreements automatically prevent transactions from being completed once the credit limit is reached. In this case, purchases may be declined once a user has spent up to the authorized limit. Some financial institutions allow credit card holders to request that they not be allowed to exceed their credit limit, to help them control their level of debt. Other financial institutions will only allow certain eligible cardholders to exceed their limit, such as those with strong credit histories.




If you spend over your credit card credit limit, you may be charged additional fees or interest, but it depends on the policy you have with a financial institution. Not all banks charge an “over limit” fee (also known as an over limit fee). However, any purchase made using a credit card is added to the card balance, which means you still have to pay it back within a certain time frame, usually with interest. Even if you don’t plan to spend more than your credit card limit, fees and charges could cause your account to be overdrawn. Your personal credit rating can be negatively affected if you don’t make regular payments to your credit card.








Credit limits: why are they important?




Credit limits on credit cards are important for several reasons, including:




1. Determine how much you can spend




Since the credit limit on a credit card is the maximum amount you can borrow on that card, credit limits determine how much money you will have available for purchases. Compared to other types of loans, credit cards are generally more flexible in terms of when you can spend the funds and what you can spend them on. For example, credit cards usually allow you to borrow a succession of small or larger sums and use them to buy whatever you need (as long as the seller accepts the type of credit card you have) . Whereas if you take out a car loan, for example, you must use the loan for a car. Keep in mind, however, that money borrowed from a credit card must be repaid under strict terms and generally attracts a higher rate of interest on outstanding balances than some other forms of credit.




2. Consider how much you owe




The credit limit is the amount of money you can borrow from the financial institution. If you have a high credit limit, you can borrow up to that amount and repay it in installments, with interest if certain conditions are not met. If you want to try to minimize your level of debt, having a high credit limit could be an unwelcome temptation to spend more and therefore increase your level of debt. However, if you opt for a lower credit limit, it can help you control your spending. Keep in mind that fees and charges, including interest, generally apply when using a credit card, and they can add up over time. Developing a budget and learning how to manage expenses effectively can be helpful in minimizing overall debt, and you might even consider saving and creating an emergency fund, instead of relying on credit.








3. Can impact your credit rating




The amount you have borrowed – or asked to borrow – will be shown on your credit report, which financial institutions and other parties can verify. This includes credit card information and the total credit limits of those cards. The total credit limit, regardless of how much credit you have used, will be taken into account when calculating your credit score. For example, you might have multiple credit cards from different banks. Your debt level will be calculated by adding the credit limits of all your credit cards. Your repayment history is also taken into account. Why is this important? Banks will check your credit score every time you apply to borrow money, and your credit score may affect other applications, such as rental properties. You can check your credit score for free with Canstar.








If you are considering a credit card, it is important to read the policy documents, such as Target Market Determination and Key Information Sheet that apply, to support your decision making.









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4 Reasons Millennials Say Yes to a Credit Limit Increase https://fimendurance.com/4-reasons-millennials-say-yes-to-a-credit-limit-increase/ Fri, 28 Jan 2022 13:20:12 +0000 https://fimendurance.com/4-reasons-millennials-say-yes-to-a-credit-limit-increase/ As soon as we Millennials start gaining financial independence, we are often bombarded with tons of financial advice from our friends and family, right? And one of the most common tips is don’t use credit cards, right? Despite the plethora of benefits that credit cards come with, we repeatedly feel uncomfortable with this payment method. […]]]>


As soon as we Millennials start gaining financial independence, we are often bombarded with tons of financial advice from our friends and family, right?

And one of the most common tips is don’t use credit cards, right?

Despite the plethora of benefits that credit cards come with, we repeatedly feel uncomfortable with this payment method. And the result? Not only are many people reluctant to take out a credit card, but even those who already have it, end up refraining from increasing their credit limit further for fear of overspending.

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What all those people, who believe in biased opinions or hearsay that cast credit cards in the wrong light, don’t realize that the problem lies in your usage and repayment behavior. towards this financial tool. Click here know the common mistakes made by credit card users.

So if you are also one of those millennials who hold a credit card but refrain from increasing your credit card limit, it’s time to hit the refresh button in your mind and read these awesome benefits of accepting a higher credit card limit.

Read also : Why Your Credit Score May Drop Despite Timely Payments!

1. Increases your credit score

How Raising Your Credit Limit Increases Your Credit Score
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You may be wondering how increasing your credit card credit limit can boost your credit score. Let’s simplify this for you.

One of the key factors that loom large in the calculation of your credit score, and therefore influence, is your credit utilization rate (CUR). This is the proportion of the total credit limit used by you. For example, if your total credit limit is ₹1.5 lakh and your current credit card balance is, say, ₹60,000, then your CUR is 40%.

Now, since financial institutions generally tend to consider those who maintain a CUR above 30% as credit-hungry borrowers, credit bureaus are also following suit and lowering your credit score every time you breach that mark. .

So, since your credit limit is a key component in determining your CUR, having a higher credit limit would ultimately lower your credit score, provided that you do not increase your credit card spending while obtaining an enhanced credit limit. Subsequently, a reduced CUR will increase your credit score, which will improve your overall eligibility for loans and credit cards.

Read also : How Secured Credit Cards Can Help You Enter The World Of Credit Scoring

2. Expands your horizon to meet financial demands

A higher credit limit can help when there is a shortage of funds
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Another key benefit of increasing your credit limit is that the enhanced credit limit can act as a bigger cushion in the event of unexpected financial demands, shortfalls or large expenses that you can channel through your credit card, without immediately jeopardizing your present cash in the form of bank balance or investments.

After using your larger credit limit to deal with such circumstances, you can easily repay the outstanding amount on the due date, which is usually around 18-55 days from the transaction date, or even convert this large amount into EMI, if needed, instead of having to bear the heavy financial burden of around 40% per year on unpaid dues.

Moreover, in case of financial requirement, you can also withdraw money from your credit card, if necessary. But only use this facility as a last resort and try to repay the amount withdrawn at the earliest, as twin fees in the form of cash withdrawal fees and finance charges are levied on such transactions.

Read also : Does it make sense to maintain an emergency fund if you have a balance and investments in a major bank

3. Provides greater reach to make large purchases through EMIs

You can make an instant EMI purchase or later convert a transaction to an EMI credit card
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Credit card EMI features are becoming increasingly popular among users and merchants.

Whenever you want to make a relatively large purchase like an expensive TV, iPhone, watch, etc. there are various merchants who already have ties with credit card issuers to offer EMI facilities at lower interest rates or even as EMIs at no cost.

And that’s not all. Instead of buying goods directly from EMI instantly, you can even convert a large purchase later to EMI, by opting in to the credit card issuer’s app or website or by contacting them. on this subject.

All in all, the idea of ​​owning something on EMI that you couldn’t otherwise buy by lump sum payment is what drives many credit card users towards the EMI facility.. Since your credit card purchase would be against the limit itself anyway, having a higher credit limit can help you make larger transactions, if needed. Additionally, a larger credit limit would also help keep your CUR lower.

To simplify, let’s take this example. If your current credit limit is ₹60,000 and you want to buy a ₹30,000 mobile phone. Your CUR would be 50%, which is well above the 30% mark beyond which the credit bureaus tend to lower your credit score.

In such a case, if you had a higher credit limit, your CUR may stay lower and hence prevent your credit score from taking a hit as well. Like if you have a credit limit of say ₹1 lakh, your CUR in this case would be 30% which is much lower.

Therefore, it is better to have a higher credit limit if your card issuer has offered you the same, or you can check your eligibility by logging into the card issuer’s app or to online banking, and request a credit limit increase if eligible.

Read also : Stop these 5 daily financial habits that are hurting your credit score

4. Provides access to a larger credit card loan if needed

Loan against credit card
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The credit card lending function is not known to many users. For the uninitiated, these are pre-approved loans typically offered by credit card issuers to select customers based on their bill paying history, spending habits, and more.

And since this loan is sanctioned by the credit card user’s credit limit, which is blocked by this amount, having a higher credit limit allows you to qualify for a larger loan amount whenever the need arises. The pre-approved nature of these loans generally eliminates the need for documentation, hence disbursement is among the fastest. As well, remember that your locked credit limit continues to be released as you continue to repay credit card loan EMIs, with terms typically up to 5 years.

Moreover, some credit card issuers even offer a credit card loan variant, in which the loan amount exceeds the credit limit, so the limit is not blocked when using this loan. .

Read also : 5 great financial resolutions for the New Year 2022

Click here to download CRED and unlock a plethora of exclusive offers, rewards, cashback, and more. on credit card payments, plus receive payment reminders, credit score check, detect hidden fees or charges, and participate in fun games that give you chances to win exciting gifts!

And don’t forget to consult the CRED to your friends and family!

For more interesting financial content and the latest news, Click here.


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Why did your credit limit automatically increase? https://fimendurance.com/why-did-your-credit-limit-automatically-increase/ Thu, 13 Jan 2022 17:09:25 +0000 https://fimendurance.com/why-did-your-credit-limit-automatically-increase/ Editorial independence We want to help you make better informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information see How we make money. You may know that your credit card company can penalize you for […]]]>

We want to help you make better informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information see How we make money.

You may know that your credit card company can penalize you for late payment. But did you know that your issuer will also reward your responsible credit card behavior?

We’re not talking about earning bonus rewards or extra perks – instead, credit card issuers are rewarding cardholders for their on-time payments with a credit limit increase. This is often automatic and you may not be notified that it is happening. But it will improve your credit score as long as all other factors remain the same. This means you shouldn’t start spending more or change your payment habits.

Here’s everything you need to know about an automatic credit limit increase, plus some tips for when it’s time to upgrade to a better card.

What is a credit limit?

“A credit limit is the maximum amount a card issuer has loaned a cardholder once they have been approved for a credit card,” says Nathan Grant, senior credit industry analyst at Credit Card. Insider, a credit card review site. In other words, this is the maximum you can charge your card before you have to pay off the balance.

Your credit limit will have a significant effect on your credit score due to what is called your credit utilization rate. This is the percentage of your available credit that you are using at any given time and is calculated by dividing your total outstanding balance by your total credit limit. “Usually the higher the credit limit, the better your credit score,” says Jessica Weaver, CFP, CDFA, CFS and author of “Confessions of a Money Queen.” Indeed, if your credit limit increases and your balance remains the same, you will use a lower percentage of your available credit, which will have a positive impact on your credit score.

Why did your credit limit increase automatically?

If you find that you received a credit limit increase without asking for it, know that this is a common occurrence that will most likely help you, not hurt you.

“Sometimes issuers automatically give cardholders in good standing a higher credit limit,” says Grant. Weaver notes that credit card companies like to give credit limit increases to people who use their card frequently but also make their payments on time. There are several reasons your credit card issuer may have given you a raise:

  • You have always made your payments on time
  • You declared an increase in income
  • You have been a cardholder for a long time

Each issuer has different criteria for determining when an automatic credit limit increase will occur. But if this happens to you, you should congratulate yourself for maintaining a positive payment history. With your new credit limit, you can enjoy more flexibility in spending with your credit card, and if you keep your balances at the same level as before, you’ll likely see your credit score go up as well.

Should you spend more?

Your credit limit tells you how much you can spend, not how much you should to pass. “Just because you have a higher credit limit doesn’t mean you have to spend more. You have more buying power, but that doesn’t mean you should rack up more debt,” says Grant. In fact, you should focus on keeping your balances low, ideally below 30% of your credit limit. However, Weaver adds, the higher credit limit “is there as a resource.” This means you can use it for an emergency expense or a one-time large purchase that you intend to pay off, instead of taking out a separate loan. However, having an emergency fund on hand or delaying a major purchase until you can pay for it in cash is always better than keeping a balance on your card in these situations.

In general, though, “you should be able to pay your credit card with the money in your bank account,” Weaver says. This means you should have a budget and never spend more than you can afford to repay during the grace period. If you start to have a balance, it will negatively affect your credit utilization rate, and high credit card APRs mean interest charges can add up quickly too.

Will your APR change?

Your APR represents the total annual cost, including interest and fees, that you will pay to carry a balance on your card. Many credit card issuers charge penalty APRs, so if you miss a payment, you could see your APR increase. But an automatic credit limit increase should have no effect on your APR. “Issuers won’t change your APR because of this factor,” says Grant, who notes that you’ll need to negotiate with your issuer separately if you want a lower rate.

Can you apply for a higher credit limit?

Even if your issuer doesn’t offer automatic credit limit increases, you may want to request a higher credit limit if you’ve been making payments on time for a while or if your income has increased. The process for applying for a higher credit limit varies by issuer. “Some cards will have a request link directly in your online account or in the app itself. Others might ask you to call customer service,” says Grant. get a higher limit, and if your credit card company approves the increase, you’ll likely see an increase in your credit score.

Pro tip

Some credit card issuers allow you to request a higher credit limit online. If you’ve been making regular, on-time payments for a while, or if you’ve seen an improvement in your credit score, try this option.

Are you ready for a map upgrade?

An automatic credit limit increase is a sign of a consistent payment history. If you’ve also kept your debt balance low in addition to making payments on time, you may have seen your credit score improve over time. This means you might be ready for a better credit card if you started with a student card or a card designed for bad credit applicants. Weaver recommends a credit score of 700 as a good benchmark to aim for before applying for a rewards card.

If your current credit card doesn’t fit your lifestyle, that’s another sign it’s time to apply for a new one. “If you start using your credit card more and more, you want to look at what the rewards are on the credit card,” says Weaver. Try to choose a rewards credit card that offers rewards for the categories in which you spend the most. Pay attention to other bonuses and perks too, and pick the card you’ll get the most out of. For example, if you are planning a trip abroad, you might want a travel rewards card with no foreign transaction fees.

There’s no magic moment to apply for a new card, but you can constantly monitor your credit score and view available credit card offers. If you see your score go over 700 and you find a card that offers more for your money, it’s probably a good idea to apply. Remember that even after getting a new card, you should probably keep your old card open to benefit from that account’s credit history, unless the card charges an annual fee that isn’t worth it anymore. sadness.


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How to request a credit limit increase for your Apple card https://fimendurance.com/how-to-request-a-credit-limit-increase-for-your-apple-card/ Wed, 17 Nov 2021 19:15:10 +0000 https://fimendurance.com/how-to-request-a-credit-limit-increase-for-your-apple-card/ If Apple Card is your choice, sometimes you may need a higher credit limit. Fortunately, the credit card company made it quick and easy to apply for an increase in the credit limit for the Apple card. Here, we’ll walk you through the easy-to-follow steps. How to request additional credit on your Apple Card When […]]]>

If Apple Card is your choice, sometimes you may need a higher credit limit. Fortunately, the credit card company made it quick and easy to apply for an increase in the credit limit for the Apple card. Here, we’ll walk you through the easy-to-follow steps.

How to request additional credit on your Apple Card

When the 2021 JD Power U.S. Credit Card Satisfaction Survey was released, Goldman Sachs ranked much better than other midsize credit card issuers. The Apple Card is the only card issued by Goldman Sachs, and based on their JD Power rating, the company prides itself on customer satisfaction. Perhaps this is one of the reasons they made it so easy to ask for a credit limit increase. Here are three options.

Call

If you have an Apple Card and are a dedicated user of Apple products, chances are you are pretty tech savvy. However, if you don’t like requesting an increase in your Apple card through iPhone or iPad, call the folks at Goldman Sachs. Customer service can be reached by calling (877) 255-5923.

iPhone

Applying for an Apple card credit limit increase isn’t much easier than reaching for your iPhone. This is how it works:

  • Open the Wallet app
  • Tap Apple Card
  • Tap the Plus button (the button with three horizontal dots)
  • Tap the Message button (it’s the one that looks a bit like a cartoon thought bubble)
  • Type a message requesting a credit increase
  • Press the Send button (the arrow pointing up)

iPad

You can also apply for a credit limit increase using your iPad. Here’s how:

  • Open the Settings app
  • Scroll down and tap on Wallet and Apple Pay
  • Tap Apple Card
  • Tap the Info tab
  • Press the Message button
  • Type a message requesting an upper limit
  • Press the send button

And after?

Goldman Sachs will take a fresh look at your credit history (which may include a credit check). This time, he’ll pay close attention to your Apple Card customer history. According to the Goldman Sachs website, you will need at least six months of payment history from your Apple Card as agreed.

While Goldman Sachs doesn’t explicitly say what it’s looking for when reviewing your application, a quick glance at the eligibility requirements for opening an Apple Card account offers some insight. In short, meeting these criteria will improve your chances of increasing your credit limit:

  • You have been using the Apple Card for at least six months.
  • You paid for your Apple Card on time each month and kept your overall credit usage rate low. “Credit Usage Rate” refers to the percentage of your available credit that you are using. Let’s say you have three credit cards, each with a credit limit of $ 5,000. When a company (like Goldman Sachs) checks your creditworthiness, it gets a little nervous if your cards are charged at maximum.
  • You are not in the habit of asking for an increase in your credit card limit.
  • Nothing of note has happened to your credit score since you filed your initial Apple Card application. If a quick check indicates that your credit score has plunged, Goldman Sachs may have reason to worry that an increase in the Apple card limit will make it difficult to manage your finances.

Focus on your credit score

The past two years have been difficult for everyone, and some people who once had a lot of money in their bank account have started to wonder where they would find the daily money to pay their bills. If Goldman Sachs denies your request to increase your credit limit, it may be due to a drop in your credit score.

Building a great credit score can take years and is always a long-term goal. In the short term, however, these steps should help you see improvement.

Go over your credit report with a fine tooth comb

You have the right to request a free copy of your credit report from the Big Three Credit Reporting Agencies once a year. Once you have a copy from each agency, comb through it. Looking for mistakes. For example, if you see a debt that has never been yours, it is a mistake and it could lower your credit score. If you’ve paid off a debt in full and your credit report still shows a balance, that’s another mistake that could lower your credit score.

Litigation errors

It is much easier to dispute errors on your credit report than before. It’s as easy as going to the credit reporting agency’s website and using their online portal to let them know that your report contains an error. According to the Fair Credit Reporting Act, the agency has 30 to 45 days to investigate your claim and an additional five days to notify you of the results of its investigation.

Refund balances

The credit utilization rate (also known as “Amounts Due”) represents 30% of your total credit score. The higher your balances, the higher your utilization rate. Reduce your debt, starting with credit card debt. The goal is to only use a small percentage of your available credit.

Considering that the average credit card limit in the United States in 2019 (for all cards held by a single person) was $ 31,015, it’s easy to see how keeping balances low can increase l use of credit.

Keep old credit cards open

As tempting as it may be to cut and cancel credit cards that made you spend more than you should, don’t. If you can get by without using the credit available on these cards, it lowers your credit utilization rate. As far as the credit card issuer can see, you have all of this credit but choose to use a small percentage of it. If you’re worried that you might be tempted to remove the cards and use them, give them to a friend or family member to keep them safe.

Make all payments on time

No matter what happens, strive to receive payments on time. It is a habit that slowly but steadily builds your credit score.

Maintain a mixture

Your “credit mix” is worth 10% of your credit score. A good credit mix means there is more than one thing in your credit portfolio. That is, if the only credit you had were four car payments or four credit cards, a creditor would wonder if you are able to handle different types of credit. Show them you are by mixing up your debts.

Of course, your credit score may already be in great shape. If so, good job! Now all you have to do is wait for Goldman Sachs to return and continue your good credit habits. And the next time you apply for a credit card, you’ll be in great shape to apply for the high credit limit card you’re looking for.


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NewDay Launches New Digital Account Giving Customers Up To £ 5,000 Credit Limit https://fimendurance.com/newday-launches-new-digital-account-giving-customers-up-to-5000-credit-limit/ Wed, 17 Nov 2021 14:47:50 +0000 https://fimendurance.com/newday-launches-new-digital-account-giving-customers-up-to-5000-credit-limit/ NewDay, one of the UK’s largest consumer credit providers, launched Newpay, an instant access digital credit account designed to help people spread the cost of larger carts and online purchases . Newpay offers customers a digital credit limit of up to £ 5,000, which can be used by a range of online retailers, allowing them […]]]>

NewDay, one of the UK’s largest consumer credit providers, launched Newpay, an instant access digital credit account designed to help people spread the cost of larger carts and online purchases .

Newpay offers customers a digital credit limit of up to £ 5,000, which can be used by a range of online retailers, allowing them to break down the cost of internet shopping into manageable monthly payments, with a single amount at pay monthly – even if a person has multiple payment plans.

There is only one account for all purchases, allowing customers to view their Newpay purchases in one place, either online through the Newpay website or in the Newpay app.

A credit product regulated by the Financial Conduct Authority (FCA), Newpay uses the same affordability verification standard as NewDay’s other consumer credit products, with an individual’s repayment capacity taken into account at the stage. demand.

NewDay branded credit cards

  • Aqua credit card
  • Ball credit card
  • Opus credit card
  • Fluid credit card

NewDay’s co-branded credit cards

  • Amazon credit card
  • Tui Credit Card
  • Debenhams Credit Card
  • House of Fraser Credit Card
  • Laura Ashley Credit Card
  • Burton Menswear Credit Card
  • Dorothy Perkins Credit Card
  • Evans Credit Card
  • Miss Selfridge Credit Card
  • Credit card holding
  • Topman Credit Card
  • Topshop Credit Card
  • Wallis credit card

The Newpay eligibility check does not impact anyone’s credit report as a quick “risk-free” check is performed.

If a customer passes the eligibility check and decides to apply for a Newpay account, a more detailed check, which will appear on their credit report, will be performed.

As a credit account, Newpay can help customers build their credit score over time as long as they stay within their credit limit and make their monthly payments on time.

This is a key differentiator for customers, unlike some unregulated Buy Now Pay Later products on the market.

Newpay customers only need to be approved once and receive a credit limit that will apply to all current and future purchases made through their Newpay account, rather than having each transaction approved individually.

Customers can use their Newpay account for multiple purchases, as long as the balance of all purchases remains within their credit limit.

Latest personal finance stories

Newpay allows a range of payment plans, including:

  • Monthly installments with fixed payments over periods of six to 24 months for purchases over £ 100 at the customer’s standard interest rate
  • Monthly payments with fixed payments of six to 24 months at 0% interest with selected retailers
  • Revolving credit

Customers simply choose which of these payment plans they want when making their purchase. The Newpay app allows customers to easily track and manage payments.



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Ian Corfield, Commercial Director of NewDay, said: “We believe Newpay can help meet customer needs in the evolving e-commerce space. Many unregulated Buy Now, Pay Later providers offer products that require customers to make multiple payments on these plans each month.

“With Newpay, we wanted to offer customers the ability to choose the payment plans and timeframes that suit them, with customers only paying one amount per month, even if they have multiple payment plans in place for their purchases. .

“As a consumer credit company, we believe that our regulated offering and our expertise in understanding and assessing an individual’s credit profile positions us to provide customers with meaningful products. Newpay helps people get ahead with credit as long as they stick to their credit limit and make their monthly payments on time.

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Definition of credit limit https://fimendurance.com/definition-of-credit-limit/ https://fimendurance.com/definition-of-credit-limit/#respond Tue, 28 Sep 2021 07:00:00 +0000 https://fimendurance.com/definition-of-credit-limit/ What is a credit limit? The term credit limit refers to the maximum amount of credit that a financial institution gives to a customer. A lending institution extends a credit limit on a credit card or line of credit. Lenders usually set credit limits based on the information provided by the credit applicant. A credit […]]]>

What is a credit limit?

The term credit limit refers to the maximum amount of credit that a financial institution gives to a customer. A lending institution extends a credit limit on a credit card or line of credit. Lenders usually set credit limits based on the information provided by the credit applicant. A credit limit is a factor that affects the credit scores of consumers and can affect their ability to obtain credit in the future.

Key points to remember

  • The term credit limit refers to the maximum amount of credit that a financial institution gives a customer on a credit card or line of credit.
  • Lenders usually set credit limits based on the consumer’s credit report.
  • A lender typically gives high-risk borrowers lower credit limits because they lack capital and the ability to repay debt. Low risk debtors are usually given higher credit limits, which gives them more flexibility when spending.

6 benefits of increasing your credit limit

Understanding credit limits

Credit limits are the maximum amount a lender will allow a consumer to spend using a credit card or revolving line of credit. The limits are determined by banks, alternative lenders, and credit card companies and are based on several pieces of information relating to the borrower. These lenders look at the borrower’s credit rating, personal income, loan repayment history, and other factors.

Limits can be set for unsecured credit and secured credit. Unsecured credit with limits often comes in the form of unsecured credit cards and lines of credit. If the line of credit is secured, backed by collateral, the lender considers the value of the collateral. For example, if someone takes out a home equity line of credit, the credit limit varies based on the equity in the borrower’s home.

Lenders will not issue a high credit limit for someone who will not be able to repay it. If a consumer has a high credit limit, it means that a creditor views the borrower as a low risk borrower. This borrower has a greater ability to spend with a higher credit limit.

High credit limits can be troublesome when they allow overspending and the borrower cannot meet their monthly payments.

A credit limit works the same whether the borrower has a credit card or a line of credit. A borrower can spend up to the credit limit, but if it exceeds that amount, they can face fines or penalties in addition to their regular payment. If the borrower spends less than the limit, they can continue to use the card or line of credit until they reach the limit.

Credit limit vs available credit

A credit limit and available credit are not the same. If a borrower has a credit card with a credit limit of $ 1,000 and the cardholder spends $ 600, they have an additional $ 400 to spend. If the borrower makes a payment of $ 40 and incurs finance charges of $ 6, their balance drops to $ 566 and they now have $ 434 of available credit.

Can lenders change credit limits?

In most cases, lenders reserve the right to change credit limits. If a borrower pays their bills on time every month and doesn’t go over their credit card or line of credit, a lender can increase their line of credit. This has a number of benefits, including increasing the borrower’s overall credit rating and accessing more and cheaper credit.

On the other hand, if the borrower does not repay or if there are other signs of risk, the lender may choose to reduce the credit limit. A reduction in the borrower’s credit limit increases the balance / limit ratio. If the borrower uses a large portion of his credit, it becomes a higher risk for current and future lenders.

Credit limits and credit scores

A person’s credit report shows the credit vehicles they use as well as each account’s credit limit, high balances, and current balances. High credit limits and multiple lines of credit hurt a person’s overall credit rating.

Potential new lenders can see that the applicant has access to a large amount of open credit. This is a red flag for a lender simply because the borrower may choose to maximize their lines of credit and credit cards, extend their debts too much, and become unable to repay them. Since high credit limits have this potential effect on credit scores, some borrowers sometimes ask creditors to lower their credit limits.

Advisor overview

Derek Notman, CFP®, ChFC, CLU
Intrepid Wealth Partners, LLC, Madison, WI

When applying for credit, consider the following checklist to be the best prepared:

  • Make sure the lender knows why you need the money. Why are you asking for credit? Having a clear reason will make them more comfortable.
  • Have a personal financial statement already completed. The bank will ask you, so be prepared.
  • Have your income tax returns for the past two or three years, the bank will ask you for them as well.
  • Be prepared to use one of your assets as collateral to secure some or all of the credit. It can be real estate, life insurance with cash value, or a business asset. Don’t give it away right away, but use it as a bargaining chip.
  • Don’t be afraid to try to negotiate the interest rate on the credit.
  • Being prepared will show a lender that you are organized, serious, and hopefully make them feel like a low risk borrower.

What is a credit limit?

A credit limit is the amount of unsecured or secured credit that a lender will extend to a borrower through a revolving loan vehicle such as a credit card, personal line of credit, or home equity line of credit. Lenders grant credit limits based on several factors, including the borrower’s credit rating, other types of credit they have, income, and on-time payment history.

What is the available credit?

Available credit is simply the unused portion of a borrower’s credit limit at any given time. So if someone has a total credit limit of $ 10,000 on their credit card or personal line of credit and have already used $ 5,000, they will have the remaining $ 5,000 as available credit to which they could access. Available credit may fluctuate throughout the billing cycle based on account usage. The opposite of available credit is the credit utilization level – which tracks the percentage of the line of credit that is in use at any given time.

What is a credit score?

A credit score is a calculated value that serves as an indicator of a borrower’s creditworthiness or ability and the likelihood that they will repay their debts on time in accordance with the terms of the loan agreement. Credit scores are generated by credit reporting agencies such as Experian, Equifax or TransUnion and use formulas that assign weights and values ​​to factors such as payment history, amounts owed, duration credit history and use of credit. Credit scores are not the same as credit reports, the latter are simply records of the types and status of credit accounts that are reported to credit bureaus by lenders.


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Pros and Cons of Increasing Your Credit Limit https://fimendurance.com/pros-and-cons-of-increasing-your-credit-limit/ https://fimendurance.com/pros-and-cons-of-increasing-your-credit-limit/#respond Fri, 16 Jul 2021 07:00:00 +0000 https://fimendurance.com/pros-and-cons-of-increasing-your-credit-limit/ FARMINGTON HILLS, Mich. (WXYZ) – Many of our mailboxes are inundated with credit card offers. Some of them from your current credit cards are aimed at increasing your credit limit. “The whole idea of ​​increasing your credit limit. Do you like it? ” Alicia Smith asked Flint’s Kavina Walker. “Yeah Yeah. That’s a great thing. […]]]>


FARMINGTON HILLS, Mich. (WXYZ) – Many of our mailboxes are inundated with credit card offers. Some of them from your current credit cards are aimed at increasing your credit limit.

“The whole idea of ​​increasing your credit limit. Do you like it? ” Alicia Smith asked Flint’s Kavina Walker. “Yeah Yeah. That’s a great thing. Yeah,” Walker replied.

“I had Bank of America, and they increased my credit limit. So that was a big advantage for sure, ”said David Rodriguez of Dearborn Heights.

Smith asked Southfield’s Rodney Ellis if he would be interested in increasing the credit limit if offered one.

“If it’s important, and it’s at a decent pace, sure. I mean in business sometimes you need that extra credit here and there. So I don’t think that’s a bad thing, ”Ellis said.

I sat down with Kristen Holt – CEO of Farmington Hills-based Greenpath Financial Wellness – to learn the pros and cons of saying yes to a credit limit increase.

“What should people watch out for when they receive these offers in the mail? Smith asked.

“The first thing is to look at the wording of the offer. If it says “may be eligible” it is very different from a letter that says “We just increased your credit limit”. “May be eligible” means you will likely need to apply and they will need to withdraw your credit report, ”Holt explained.

A con gets a pull on your credit report. This could have a negative effect on your credit score.

So, Holt said it’s important not to allow credit checks if you plan to buy a home or car soon, as it could potentially lower your score, which could hurt your chances of getting a credit card. low rate for this future loan.

But one of the benefits of increasing your credit limit is that it could potentially to improve your credit score.

Holt said that 30% of your score is determined by your “credit utilization ratio”.

“What it is is to see how much credit you have available and how much you are actually using,” Holt explained.

For example, if you only have one credit card with a $ 1,000 credit limit and you have $ 500 in unpaid charges on that card, you are using 50% of your credit limit.
But if you get a credit boost to $ 2,000 on that card, you’re now only using 25% of your available credit limit.

“A good rule of thumb – what they’re really looking for – is that you use 30 percent or less – and that’s something I think a lot of people don’t know.”

And, remember, if you get a higher limit, that doesn’t mean you have to use all that money.

“As long as you can trust yourself, and you’re not going to take that as a license like – ‘Oo, I’ve got all that extra money to spend,’ getting that credit limit increase is going to be a big deal. great help for your credit score, ”said Holt.

This is especially the case if the card company does not pull your credit report, but simply gives you a higher limit based on your history as a good customer or the card company ‘s fear of losing you. as a customer.

Holt said another pro for taking this higher limit is that it gives you an emergency cushion if you have an unexpected expense, like a car repair.

And it gives you more of an opportunity to maximize your reward points by charging for certain daily expenses and earning, for example, airline miles.

But regardless of the pros and cons, Holt said you should make a goal of paying off your credit card balance every month.

In this way your cha-chings don’t end up having a negative blows on your credit report.

So if you get an offer, weigh the pros and cons.
And be aware that some people don’t get their credit limit increased.

According to a recent survey by Loan tree, nearly a third of U.S. cardholders had their credit limit reduced or their account closed in the first four months of this year, or about 62 million people.

And this is in addition to tens of millions of people who suffered credit limit cuts in 2020.

Sometimes card issuers will lower your credit limit if – one – you are not using the card enough or – two – the card company is concerned about their financial situation or the economy.

If this worries you, use your card a little more, but make sure the balance doesn’t slip out on you.

If this is the case – or if it already is – you can get help from the association. Greenpath Financial Wellness.

The number to call for a debt counselor is (866)648-8122 or visit greenpath.com.


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