5 Ways to Get a Higher Credit-Card Limit This Holiday Season

Curated by WorkingFromHome

This article is an excerpt from the original article found in the Read More link – please follow for full article.

Opinions expressed by Entrepreneur contributors are their own.

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.

This will come as no surprise, but the 2021 holiday season is quickly approaching, and consumers are ramping up to celebrate Christmas and the New Year. Along with these joyful holidays comes, unfortunately, the high cost of spending to purchase gifts, food and other necessities. 

While many people try to stick to a budget, the price of goods has increased dramatically in the United States, leaving many individuals wondering how they can get approved for a higher credit-card limit — and fast. 

Related: How to Bounce Back From a Credit Card Mistake – NerdWallet

Well, you’re in luck. Here are five surefire ways to boost your credit limit this holiday season.

1. Active credit

Banks like to see that you have at least four accounts on your credit profile. In fact, contrary to popular belief, the more the better. Revolving accounts (like credit cards) should have a minimum of six months of payment history with a utilization under 15%. Be careful, however, not to completely zero out all of your revolving accounts. Banks like to see that you are utilizing credit, but not too much — about 30% is optimal. It’s a subtle art. Installment accounts should also have a minimum of six months of payment history as well as a low balance — the lower the better. 

2. Clean credit

Do not have any negative or derogatory items on your credit report at all. This includes collections, charge offs and missed payments. Anything negative will stop you from getting a higher credit-card limit, even if the blemish happened long ago. However, remember that most derogatory items fall off your credit report in seven years, so there is hope if you’ve made mistakes in the past. 

3. Tradeline

 Add one — and only one — large authorized-user tradeline. An authorized-user tradeline is most commonly used when a friend or family member adds you to his or her credit card. Then, the user’s credit history (age of that account and credit limit) will show up on your credit profile in less than 30 days. If the person hesitates to add you, let him or her know that you don’t actually need to use the card at all; it just needs to show up on your report. 

Ideally, you want an older credit card with a high credit limit. A credit card from Capital One with one year of history and a $500 limit is considered a small authorized-user tradeline. A credit card from Chase with nine years of history and an $18,000 limit is considered a large authorized-user tradeline. In this case too, the bigger the better. Only add one of these because if you add multiple, the banks will think you are trying to take advantage of the credit system.

Related: What 6 Money Pros Wish They’d Known About Credit Cards

One big tradeline will enhance your file, and most banks will even mirror your highest limits — a huge bonus. 

4. Minimize inquiries

 The best time to apply for a credit-limit increase is when you don’t have a lot of hard inquiries on your credit profile. Hard inquiries stay on your credit profile for up to 25 months and, typically, you want to ensure you have no more than three inquiries per bureau. Oftentimes, when lenders check your credit, they run your credit multiple times in a practice now known as “a shotgun inquiry.” 

When lenders pull your credit in this method, it harms your credit profile but, according to the Fair Credit Reporting Act, it also has legal ramifications. Most credit-repair companies can dispute the accuracy of these multiple inquiries and delete them from your report — sometimes in as little as 24 hours. When you apply for a credit card, you must not have a lot of these hard inquiries. 

5. Be cautious

 The most important tip of all is to read the fine print. Credit-card issuers want to know how much of a credit limit they can give you. To determine this, they look at the amounts of credit cards already on your credit report, the amounts of installment accounts, your annual income and rent. When they ask your annual income, the fine print sometimes says “household income” or “projected income.” You can either include you and your spouse’s income, your roommate’s income or the amount of money you think you will be making this upcoming year. 

All banks have their own algorithms that they use to determine credit worthiness. If you are applying at an institution that you bank with, some will take that into account, as well as how much money is in your checking or savings account. 

Related: Your Business Doesn’t Have to Pay Credit Card Fees Any More

Even though the holiday season is almost here, it’s not too late to start making changes to secure a higher credit-card limit. Follow the above tips, and you’ll be well on your way to getting the finances you need to enjoy a comfortable Christmas and New Year’s with your family and friends.

Source: Entrepreneur.com

Read the original here:
5 Ways to Get a Higher Credit-Card Limit This Holiday Season

You May Also Like…

Capital One vs. Ally: Which Credit Services Stock is a Better Buy?

Capital One vs. Ally: Which Credit Services Stock is a Better Buy?

The credit services industry has been making an impressive comeback on rising credit transactions and consumers’ increased discretionary spending. So, Capital One Financial (COF) and Ally (ALLY) should benefit from the industry tailwinds. But which of these two stocks is a better buy now? Read more to learn our view. shutterstock.com – StockNews Capital One Financial Corporation (COF) in McLean, Va., is a diversified financial service holding company that offers a range of financial products and services to consumers, small businesses, and commercial clients through branches, the internet, and other distribution channels. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. In comparison, Ally Financial Inc. (ALLY) in Detroit, Mich., is a bank holding company that provides various digital financial products and services to consumer, commercial, and corporate customers. It operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.The credit services…

It’s Time to Step into Yum! Brands Stock

It’s Time to Step into Yum! Brands Stock

Popular restaurant franchisor Yum! Brands (NYSE: YUM) stock has been selling off with the benchmark indexes despite strong earnings. The Company is a franchisor of well-known restaurant brands including KFC, Pizza Hut, Taco Bell, and Habit Burger Grill. All brands are growing with KFC leading the pack at an 11% clip. The price/earnings is falling back to earth at 27X forward earnings. The Company has over 50,000 locations and launched 760 new restaurants in Q3 2021 with plans to continue opening new units at a 4.5% rate. The Company was a pandemic winner thanks to its drive-ins, mobile ordering, and take-out options. It continues to thrive during the reopening phase and even through COVID omicron surges as its touchless options are paying off. The recent selling in shares if providing prudent investors with opportunistic pullback levels to consider building a position in this value stock. Depositphotos.com contributor/Depositphotos.com – MarketBeat Q3…

Working From Home TV …

Tips to enhance your own website…

How to Create a Giveaway to Grow Your Email List by 150% – Website Tips

How to Create a Giveaway to Grow Your Email List by 150% – Website Tips

Do you want to start a giveaway and get more email subscribers? Giveaways are one of the fastest ways to grow your email list, increase traffic, and boost sales. They help you reach new audiences and boost user engagement on your website. In this article, we’ll show you how to use a giveaway to grow your email list faster. Why Use a Giveaway to Grow Your Email List? Did you know that email marketing sees a 4300% return on investment (ROI) on average for businesses in the US? People who sign up for your emails are already interested in your products and services, making them highly likely to convert into paying customers. However, the hardest part is getting more people to join your email list. This is where running a contest or giveaway on your WordPress site comes in handy. It helps you grow your email list while getting more…

How to Track Video Analytics in WordPress (Step by Step) – Website Tips

How to Track Video Analytics in WordPress (Step by Step) – Website Tips

Do you want to know which videos your visitors watch the most on your WordPress website? Videos are a great way to bring life to your website and boost engagement. By tracking video analytics, you can see how your videos are performing with metrics like total views, watch duration, and more. In this article, we’ll show you how to track video analytics in WordPress using Google Analytics. This solution works for YouTube, Vimeo, and other HTML5 video embeds. Why Track Video Engagement in WordPress? Adding videos to your content makes your articles more engaging and helps in getting people to spend more time on your site. However, if you have multiple videos on your WordPress site, then how do you which type of content is performing the best and whether people are watching your videos or not? Tracking video engagement in Google Analytics can help you uncover these insights. You…

How to Easily Create a Custom WordPress Theme (Without Any Code) – Website Tips

How to Easily Create a Custom WordPress Theme (Without Any Code) – Website Tips

Do you want to create a custom WordPress theme from scratch? In the past, you had to follow complicated WordPress tutorials and have decent coding knowledge to build a custom WordPress theme. But thanks to new WordPress theme builders, now you can easily make one without learning any programming skills. In this article, we’ll show you how to easily create a custom WordPress theme without writing any code. Here is the list of topics we’ll cover in this article. Creating a Custom WordPress Theme for BeginnersCreating a Custom Theme with SeedProd Theme BuilderEditing a Theme with SeedProd Theme BuilderChanging the Site-Wide Design for Your ThemeApplying and Publishing Your Custom WordPress ThemeCreating Other Layouts for Your Custom WordPress ThemeReady? Let’s get started. Video Tutorial Subscribe to WPBeginner If you’d prefer written instructions, just keep reading. Creating a Custom WordPress Theme for Beginners A WordPress website uses a theme for website layout…


Submit a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.