Boost Your Credit Limit? Read This First! 5 Crucial Tips Before You Apply

• Banks assess your credit score, income, existing debt, and payment habits to determine your credit limit.
• Consistent, timely payments are the most crucial factor for building trust and increasing your limit.
• High credit utilization (over 30%) can signal financial stress, making banks hesitant to increase limits.
• Customer-initiated limit requests may trigger a 'hard inquiry,' potentially lowering your credit score.
• An increased limit should reduce utilization, not encourage more spending, to avoid debt traps and high interest.

Why It Matters: Understand the risks and benefits before increasing your credit card limit to protect your financial health.