Tips to Increase Your Credit Card limit & Apply for Credit Card Limit Increase in UAE

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  | Published: 02 June 2021 | Last Updated On: 10 August 2021

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A credit card covers your expenditure for those when you want to buy something at present and pay for it later. Whether it is a medical bill or some expensive gift, a higher credit card limit supports you in every situation. But has it ever happened that you wanted to buy something but you could not because your credit card is maxed out and you wish for a higher credit card limit? 

What is a Credit Card Limit?

A credit card limit is the maximum credit amount your bank allows you to spend on your credit card. This credit limit is offered by the bank when you sign up for the card. The limit varies from one person to the other and one bank to the other. Initially, the bank offers a credit limit as per the card and your credit score but and it is possible to increase your credit card limit in UAE over time following these tips:

Check your Credit Score in UAE

A credit score is a three-digit figure which predicts your credibility as a borrower based on your previous credit and payments. If your credit score is high, the bank considers you as a reliable borrower and increases your credit card limit in UAE. A credit score of 700 or above is considered good

You may also like this - How Credit Card Companies Determine Credit Limit in UAE

Apply for credit card limit increase in UAE

Once you are certain that you have a high credit score, simply log on to your net banking ID and apply for a credit card limit increase. It is the simplest and easiest way of increasing your credit card limit or completed 6 months as a customer in the bank or if you have a low monthly income or if you have already borrowed multiple loans from banks.

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Improve your credit score in UAE

  • You can further boost your credit score in UAE by timely repaying the money you have borrowed. 
  • You can also make regular loan payments without missing the deadline to improve your credit score in UAE. 
  • More importantly, choose your loan amount carefully. Do not bite more than you can chew!
  • Pay the debt on your credit card in full instead of making minimum or half payments.

Tips to Increase Your Credit Card Limit in UAE

  • UpdateCautiously use the available credit
  • your financial situation
  • Increasing AnnuallyNegotiate with your bank
  • Negotiate with your bank
  • Reduce your financial obligations

Cautiously use the available credit

Though banks offer high credit card limits, as a smart borrower, you need to be careful while using that credit limit. According to research in Wall street journal, using credit cards eliminates the inhibitions of spending money since the user will be paying later for it which encourages the user’s brain to anticipate the rewards generated out of using a credit card without worrying about payment. However, experts suggest that you should not use more than 30% of your credit limit. Strategic use of credit limit suggests your credit card company that you sensibly spend and do not avail too much of your credit. Frequently using an excess of your credit limit hampers your reputation and your credit score.

Update your financial situation

One of the most common reasons for low credit card limit in the UAE is the lack of communication with your bank. Initially, the bank may have offered you a credit card with a set limit based on your then financial condition. You may have significantly improved your finances since then but if the bank is unaware of it, they would restrict your credit score based on the records they possess. You must constantly keep your bank updated about your financial condition, appraisals, or new jobs. Providing more information about your improving financial condition will encourage the bank to increase your credit card limit in UAE.

Increasing Annually

Most of the banks in the UAE offer an annual increase on your credit card limit if you have timely made your payments last year. Some credit cards offer a regular upgrade on your credit limit as well. You can check with your bank if you are eligible for an increased credit limit based on your previous year's financial behavior. 

Negotiate with your bank

You can contact your bank and negotiate the credit card limit if you have completed at least 6 months with the bank. Instead of telling the bank why you need an increase in your credit limit, tell them why you deserve it. You can use these points to discuss:

  • Mention your consistency as a borrower

  • Do not demand an increase of more than 25%.

Reduce your financial obligations

Every bank gets a verification done for every customer before sanctioning an increase in credit limit. Make sure that you have cleared all your debts. If you have any loans, make sure that you have maintained a punctual record of payment. Also, it is advised that you do not have too many financial obligations such as multiple loans that can mar your financial record. When used cautiously, a good credit limit is a boon.