Credit card is often seen as an enemy of the pocket! Especially when you lose “spending control,” it’s very easy to see yourself in a situation where your account can be more expensive than it should be …
To be sure, this is a much more behavioral problem than anything else. People rarely evaluate the interest rates and the annuity value charged by the administrators and operators, nor the taxes that affect the financial operations.
Even so, one can not deny the vital importance of the credit card in the life of another 50 million Brazilians who use this mode of payment in installments to pay higher value purchases that otherwise their income would not allow …
To make these purchases viable today, learn more about your credit card limit and how to increase it safely!
What is the credit card limit
The credit card limit is a “financial benefit” stipulated by the time you purchase the service. It is calculated by the operator of the card based on your monthly income and your consumption history (eg if your name has already been to the Credit Protection Service – SPC or not).
The amount of the credit limit may also vary as you go about using the service. For example, if your limit is $ 1,300 and you use the credit card for a purchase worth $ 300, this will be “debited” from your limit that will be $ 1,000. If, in the same month, before the closing of your invoice, you want to install an account that totals more than R $ 1,000, this operation will not be allowed.
How to increase your limit
Your credit card limit can increase even without you taking any action! This is because it can also be based on your own financial movement, that is, the higher the values of your purchases, the more it can increase …
Frequent use of the limit (say every month) for smaller purchases is another important factor, but it will not help much when less than half of the available balance is used.
You can also go to the card management institution and take your proof of income (payment receipts, tax returns, etc.) to request an evaluation of the possibility of raising the limit.
By maintaining a good balance of monthly expenses and cash needs, your credit card is no longer an enemy and becomes your ally!
Why have a higher limit
It should always be borne in mind that by splitting the purchase of goods, you are actually maintaining a “strategic reserve” of money in your pocket for cases considered more important or emergency!
It is also a way to prove that you are a “good consumer”, provided you always pay all of your commitments. This credibility is reflected in the greater ease of obtaining “credit in the market place”! Opportunities are thus opened to obtain higher credit and store credit limits for purchases of higher value goods such as a car.
In addition, it is not uncommon to be contemplated with additional benefits by using the threshold. The most common are the exchange of points for airline miles, the upgrade of your card or even receive the offer of an international card at no cost.
Without a doubt, what can avoid indebtedness is good financial planning! So here’s the tip: Always research the prices of products and services before you buy, calculate the full amount of the payment with the interest of the card and fees and reserve “extra money” for cases of debt and financial urgencies.
And be careful: increase your credit card limit only within what you can pay according to your income! Also know that nowadays there are many alternative financial institutions to conventional banks like Fintechs that are much more agile and less bureaucratic … You do not need to have a credit card with the same bank where you have a checking account! Compare all the options in the market to know which card best suits your needs.