A credit card is often looked at as a debt trap and you often hear words of caution about how its reckless use can land you in trouble to say the least. While the above may be true, most people do not see the other side of the coin when it comes to credit card usage. Your credit card, when used judiciously and smartly can actually help you increase your CIBIL score.
There are many factors that influence one’s CIBIL score and one of them is a low credit utilisation. Credit utilisation is the total amount of credit you spend as against the total amount made available to you. Of course you can keep your credit utilisation low by spending low amounts on your credit card and never exceeding 30-40% of your total credit limit, but the other way to do it is by increasing your credit limit on your card.
By increasing your credit limit you can definitely give your CIBIL score a boost and thus open up doors of lenders when you are in need of credit. If you are wondering by now what exactly is to be done in order to increase your credit limit on your card, we are here to tell you just that.