Are you getting calls to increase your credit limit of your credit card? Are you neglecting these calls by saying you are not interested to hike your credit limit? In that case, I am sure you may not aware about certain benefits of having a higher credit limit of your credit card.
Generally people avoid to have high credit limit credit card to avoid unusual situations like lost of credit card or credit card theft etc. This is a good practice though, as it will also help you to control your expenses as you know that you have a limited credit balance to spend. But in this article, I will highlight few points, which will inform you when you need a credit card with higher credit limit.
Key Benefits of Increasing Credit limit of Your Credit Card
One of my friend said that she can’t control herself from spending in case she would have a credit card with high credit limit. In fact she had a credit card and she was not able to manage her expenses. Anyway, I think one should know how much is his/her capacity of spending. Anyway, I am supporting here for having a high credit limit card and here is my points.
Want to Improve Credit Score?
Don’t think that with a higher credit limit card, your credit score will increase directly. Actually it is good to have a high credit limit card for those people who are using credit card regularly and also never cross the credit limit & pay bills without missing the due date. This will create a good impression over the period of time and your credit score will improve. I hope you know the importance of credit score in today’s world.
Best source of instant emergency fund
This is one of the most beneficial point I believe. If you need some urgent cash, then who will provide you that? A credit card can solve your problem in such a scenario in case if you have a high credit limit. Personally I have faced similar situations when faced a medical emergency for my father-in-law few years back and need to finance emergency medical expense. In that situation my credit card saved me to run out for money. So, you don’t need to run to break your fixed deposit or withdraw money from your bank’s savings account or ask a helping hand from your friend.
No Need To Carry Multiple Credit Cards
Many people have a tendency to carry multiple credit cards to avail various benefits. If your purpose is to carry emergency cash only, then it is always good to have a single credit card with higher limit of credit. It will help you to stay away from the hassle of carrying a heavy wallet and off-course managing multiple cards online also.
Earn more rewards and special cashback offers
Banks generally consider their credit card holder customers carefully as they knew that those are their premium customers. And on top of that if you have a high credit limit with regular spending records, then you may get special treatment as well. Generally banks offer various reward points, special coupons or cashback deals compared to regular customers.
More loan eligibility
Similar to the previous point, if you apply for any kind of loan like personal loan, home loan etc from the same bank you have the credit card, you will get special treatment. You may ask for some more discount or special loan interest rates also.
So, do you agree with my points to have a high credit limit card in your wallet? Do you really use credit card in every day shopping without miss-using the cards limit? Do share your thoughts and any kind of experience here by writing a simple comment below. Thanks for sharing this article with your friends in social media.