Credit cards are issued by banks and banks want money. Credit brands (which I reviewed here) only have the responsibility of moving money around. Banks pay for your swipes and you pay them back when you are billed. The credit limit determines how much payments (to the merchants of your choice) they will give you. Of course, the bigger the better.
To earn money with credit cards, banks want you to keep spending. The idea is to convince them that you are capable of spending large amounts. Large bills (which are hopefully always paid and never missed) will do this over time. With this alone though, banks will earn only a minimal amount in addition to the regular annual fees (more about those here).
Your spending though, when coupled with interest charges (which are charged if you did not pay your whole bill, more about that here) will generate huge amounts of money. Although it is never a good idea to allow debt to grow, that is what banks want. They want you to owe them money through interest charges which grow like crazy mushrooms on debt left unpaid. The banks often do this through lower minimum payment bills even if the entire outstanding balance is huge. After all, as long as you pay the minimum amount, no fees will be charged, except for interest.
To speak from experience, I started using my RCBC Bankard Classic (reviewed here) for all my gasoline fill ups. In less than a year, the credit limit increased by around 20%. On top of that, I got to use RCBC's rewards (reviewed here). In fact, the credit limit kept increasing every 6-12 months. I can say the same for my Citi Premier Miles card's (reviewed here) credit limit which kept increasing since I used it to handle my regular medical expenses.
CONCLUSION
So, to increase your credit limit, the main objective (following this theory) is to convince the issuing banks that you want to spend lots of money. Remember though, you will pay for what you swipe. Debt is never good and if bills are not fully paid, you will pay interest charges. Even worse though, are bills that are missed, i.e. not even the minimum payment is made. Choose carefully.
If you want credit cards, the following websites helped me get my cards. They work!
DO YOU HAVE SUGGESTIONS TO MAKE FOR INCREASING CREDIT LIMIT? TELL US IN THE COMMENTS!
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*All images here were just taken from the internet with the assumption that they are in the public domain. This blog was written with no intention of damaging anyone's public image, just sharing my opinion.
Philippine Credit Cards
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