Credit card limit increases happen from time to time based on the creditor’s review of your credit card account. These reviews could happen once a year, twice a year or even four times a year based on the creditors policies and procedures. The million dollar question is this. Do I have to wait until the creditor reviews my credit card account to receive a credit card limit increase?

Answer

The answer is no. Credit limit increases can be initiated by the consumer; however, there is a strategic method in which to do so.

Let’s first look at what factors may affect you in receiving a credit limit increase.

• Low activity on your current credit cards
• Zero balances on your current credit cards
• Low credit limits on your current credit cards
• Collection accounts

You may think well, I thought having a zero balance on my credit cards is a good thing! Well, it is and it’s not. Here’s the key. Why are credit card companies in business to do what they do? Credit card companies are in the business to make money!

The only way credit card companies make money is if the consumer loans money and then pays the loan back over a period of time. What does this do for the credit grantor? It allows them to collect interest off of the loan. If credit grantor’s extend consumers a line of credit and the consumer never uses it, the consumer does not prove to be a source of revenue.

Basically, they are not making money off of you at all.

You have to keep balances on your current credit cards at least 3 times a year to prove to be a source of revenue for the credit grantor. Why would they extend you more credit if you never use the amount that they originally granted you? They won’t!

How do I get a credit limit increase?

A little secret that most consumers may not know is “When” to request a credit limit increase. First and for most is this, make sure your credit report has been repaired by a professional or you can repair your credit yourself if you know what you are doing. If you do not need credit repair then credit repair does not apply to you.

Let’s first look at when consumers spend the most money. Consumers spend the most money in the Fall (school) and holiday’s. Holiday’s are a huge money maker for retail stores and credit card companies because consumers borrow money to pay for gifts. Then they spend all year trying to pay it back to the credit grantor.

Now, the more money credit grantors have the potential to make, the more likely they will authorize a credit limit increase. What you need to do only if your credit report is in decent shape is contact the credit card companies that you currently have open accounts with and do the following exactly what I’m about to tell you.

Let them know that you want to use their credit to purchase gifts, but your credit limit is low. Tell them that you have consistently been on time with your payments and you really want to purchase some items for your family members. However, the cost of the items you want to purchase cost more than your credit limit.

They will see dollar signs in their eyes and start drooling over the interest they will make. The important thing to remember is, your goal is to get a credit limit increase, not to actually “use the credit increase they provided you”.

The strategy here is to steadily raise your credit limits in a precise way throughout the life of your credit card. The more credit extended to you the more trust worthy you look to future credit grantors. Even if you are only extended an extra two to five hundred dollars, every little bit helps and it reduces your debt to credit extended ratio.

Remember, your goal is to have high credit limit credit cards. Be responsible in this strategy and like always, do not use more than 35% of your credit limit unless it is absolutely necessary.

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H & I Credit Solutions

Through the years, the “plastic money” has increasingly become a convenient way for consumers to pay for goods and services. There are two types of these, namely, the debit cards and the credit cards. And after those series of VISA commercials, who wants to pay with cash or check anymore? Credit cards, as the name suggests, allows the holder to purchase goods and services on credit and pay for them within a month or any pre-determined credit period. When this period expires, the bank or other financial institution that issued the card then starts charging interest on the unpaid amount. The card is made of plastic and the size is standard as stipulated in international financial law. It has a magnetic strip and other identification information such as a name and a picture.

Credit cards are said to have originated in the United States in the 1920s after World War I and were mainly introduced by oil companies and restaurant chains as a way of ensuring a prompt payment. However, their use spread significantly after World War II with the first modern credit cards issued by the Diners Club in 1950. This was a charge card issued to diners who did not have to use cash to pay for their meals. The club would then pay restaurant and bill the full amount to the consumer.

Credit cards work on the principle of a credit limit, which is the credit amount that the consumer should not exceed within a pre-determined time period (usually a month). When this amount is exceeded, the bank (or credit lender) will not only add an additional charge, but the interest rate charges by the company tend to skyrocket. Of course, this is when most consumers’ debt starts to spiral out of control, leading to defaulted payments and ultimately resulting in bad credit. Some banks / lenders will require that an equivalent amount of the credit limit be deposited before they activate the facility. Such a requirement is applicable for secured credit cards as opposed to unsecured ones, which do not attract such requirements due to the customer’s good credit history.

The banks and credit lenders that offer credit cards usually require a monthly or annual repayment plan to be in place. The use of this credit becomes problematic when the amount of credit accumulated within this period is not covered by the periodic payments. Therefore, controlled spending habits are necessary so that you may not attract higher interest charges on your credit cards. Though these credit lenders allow you, the consumer, to carry balances over to the next month, the consumer must increase the monthly payments to cover the previous balance as well as the current usage.

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The lure of the credit card is lurking around every corner. However, to avoid a negative credit rating, careful and thoughtful choices must be made. These choices will ensure the right motives for getting a credit card and avoid unnecessary debt. Basically, the financial position should be a major consideration in making such a life changing decision. Of course, the amount of income will determine the type of credit card you should apply for, as it can be an indicator of your budget and spending habits. Your income is tied to financial discipline such that an individual should be able to make the most of the income available without any misappropriations of this facility, for it to make any financial sense.

Credit card interest rates vary with the companies that offer them and the type of cards offered. Some credit cards have a fixed interest rate (doesn’t change), others have a variable interest rate (can fluctuate between a range). Therefore, it is important to know the kind of rates offered and if they match the income and periodic payments before signing up for a credit card. All cards have a grace period within which the balance must be paid in full though the balance may be carried over to the next period creating a revolving balance. A grace period is expressed in days from the date of the bill and the longer the grace period the better the credit card company. A card with a revolving balance will attract the annual percentage rate (APR), which may be different for different uses such as bank transfers, purchases, or cash advances.

If you are one of the few of us that are able to pay your credit card balance in full every month (or during the stipulated period) then the best option is a charge card as it attracts lower or no charges. If you require the balance to be carried to the next pay period, then a card with a low interest rate is the best choice. If the credit card will be used for bank transfers then a card with low interest on transfers is the best option for you.

Credit cards can even be used as a form of identification sometimes, due to the amount of information they contain as some have a photograph of the cardholder. The lifestyle of an individual may sometimes make it necessary for them to own and use one or several credit cards for ease of operation and sometimes for prestige. These instances will require full restraint to avoid impulse purchases and high charges.

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H & I Credit Solutions

Credit, by itself, is good. The use of it often determines whether credit is a boon or bane in one’s life and credit card offers proliferate on the internet. To an individual who has propensity to a lavish lifestyle and spending, these offers can be mouth-watering. However, for someone who has a lot more common sense than “needs”, they would not readily get duped by credit card offers.

A Story behind the Swipes

As a young professional whom has a nice job, Erika would often get credit card offers in her mailbox. These offers can be rather tempting, and so she signed up for membership with one of those credit card companies. As her purchasing power grew, so did her wants. It didn’t even take years before Erika’s life wound up just like others before her who took pleasure in swiping their credit cards, rather than balancing their checkbooks. That is, until reality hit home that they were broke!

Not the fault of credit card offers. Credit card companies, just like any other business on the internet, would resort to all forms of advertisements and marketing strategies in order to win clients. The fault line is always on how some people would look at credit cards, and where their values have taken root.

Credit Cards are Convenient Cash Windfalls

However, they are not dole-outs, but loans. You need to pay off your debts. If you use your credit line efficiently, it can help you build a small business or take you out from sticky situations where money is necessary. However, if you use credit cards with the mind-set of “one-day millionaires”, you are digging up your own graves with your plastic cards, one swipe at a time.

How Credit Card Offers Help

Credit Card Offers you receive in your mailbox are useful information you need to read and understand before you can make a choice as to which offer is best for your present needs. Without credit card offers, you may not be able to come up with an informed decision. Credit is both an opportunity and a responsibility. You should not base your decision on other’s preferences.

Responsible management of your credit cards would make life easier for you and your family, anywhere in the world. In our cashless society, your credit cards are your passport to almost everything you want to do, buy, and experience.

Your credit card offers a whole lot more opportunities than what you can imagine, but you should not abuse it. If you do, you may end up seeking credit repair services rather than touring Greece!

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H & I Credit Solutions

Exclusive Credit Cards, what we all hope to achieve!

I’m posting this topic for awareness and amusement. There are special exclusive credit cards that are available to the elite or because they are extremely rich.

Here is a list of the most Exclusive Credit Cards in the world today:

• The Black Card – The American Express Centurion® Card
• American Express Platinum Card
• The Visa Infinite
• Stratus Rewards Visa
• The Coutts & Co.’s World Card
• Barclays Bank’s new Black Visa Card
• Diamond-Studded Dubai First Royale MasterCard
• Chase SapphireSM Credit Card
• Citi Chairman American Express
• Merrill Lynch Visa Signature Rewards
• Bank of America Accolades Card
• AMEX Red Card

These cards allow consumers to have Exclusive benefits such as concierge service and exclusive restaurants. They will also have access to the various hospitality brands, polo clubs, VIP restaurants in more than 13 international locations.

I hope you enjoyed the amusing info!

Empower – Educate – Take Action

H & I Credit Solutions