What is the ideal credit card limit?

You just think about taking that little piece of purple, yellow, red plastic no matter what color, but have you ever thought about the credit card limit and how much it influences your financial health? Well check out these tips, because today is the day to understand how to use the card to your advantage.

 

Credit card limit

Credit card limit

You don’t even have to have a bank account to have your own credit card, but you can’t forget that along with the thrill of receiving it you also get a big responsibility. People tend to hire the card with the anticipation of dreams in mind, but without proper care that little friend can create a very big headache.

Look at your wallet. How many credit cards do you have? What is the limit each of them has? And the fees, which ones do not have free annuity? Yeah, you might not have thought of it before, but your wallet already weighs the responsibility of the choices when paying for purchases.

Still in doubt about it? So answer yourself, if you spent all your credit card limits today, would you be able to pay the debt without falling on the revolving interest?

 

How not to make mistakes in shopping

How not to make mistakes in shopping

The bank may have given you more limits, but you should define how much you can spend without losing your financial health. To do this, follow some basic advice we give below:

 

Do the math

Add the limits of all your personal or family cards if the budget is shared. If the amount is higher than your income, start eliminating those you don’t need or talk to your bank about lowering the limits. This keeps you from falling into temptation and does not curl up by doing more than you can afford.

 

Have a daily limit

Ideally, your card limits should not exceed 30% of household income. So take the value of your salary, find out how much is 30% and divide the amount by the number of days in the month. This way you will know how much ideal maximum to spend. If your salary is $ 3000, for example, your card limit should not exceed $ 900 per month. This gives you $ 30 a day.

 

Limits high for emergencies only

Everyone can try an emergency and as the name implies, it is something unplanned that came up unexpectedly. This means that you may have a higher limit card, but how about taking it out of your wallet and leaving it at home? So you will only use it in cases of extreme need, unforeseen events and emergencies.

 

Write down the installments

Have in your budget all installments of an acquired debt. This prevents the value from being forgotten and you eventually reach the ideal limits.

 

I can’t pay the card bill

I can

If you just figured out what the ideal amount of credit card spending was and you just got lost in your bills, it’s important to be aware: the interest on the revolving is so high! Therefore, it is time to resort to another type of credit with cheaper rates. Personal loan may be the best solution.

Increase your credit card limit

Do you have a Visa or Mastercard type credit card and want to increase the limit? Increase of permanent or temporary limit, how to go about it? Explanations.

 

Who determines the limit on your credit card?

credit card limit

When you apply for a credit card from a financial institution, the latter will study your creditworthiness in order to determine the maximum limit for the card. This limit will depend on:

  • Your income: the limit will thus vary between 1,000 dollars (low income) and 3,000 dollars or even 5,000 dollars (high income).
  • Your financial history: in case of negative registration with the ZEK (see here for more details), your credit card limit may have been lowered, or the card may even be refused.

The problem is that once the limit has been determined for your Visa or Mastercard, this limit will not be automatically adjusted in the event of a change in your financial situation. It is then up to you to take the necessary steps if you wish to increase the limit of your credit card.

 

Increase of the ceiling of your Visa / Mastercard

credit cards

There are two types of limit increase: temporary increase, and permanent increase.

  • The temporary increase is an increase in your credit card limit for a maximum of 1-2 months. It is ideal for going on vacation or if you have an expensive purchase to make.
  • The permanent increase consists in raising your ceiling permanently.

 

Request an increase in the ceiling

credit limit

The most common step is to request an increase in your credit card limit. This can be done either in writing or directly online (if you have online access to your credit card account). To request an increase in the ceiling of your Visa or Mastercard:

  • In the case of a temporary increase: it is easy to obtain an increase even if your income has not changed. You just have to justify the request by going on vacation or making a purchase.
  • In the case of a permanent increase: it will then be necessary to justify the possibility of raising the ceiling, generally by salary slips attesting an increase in income.

 

Temporary increase without request

Temporary increase without request

If you have the funds, it’s very easy to temporarily increase your credit card limit: you only need to pay more than your monthly bill. The balance paid in excess:

  • Will be deducted from your next invoice.
  • Increase the limit of your Visa or Mastercard.

Online loan – how to take care of security

When your money is at stake, security comes first. How should you protect your finances when you take out a loan online? What should you pay attention to when providing your data via the online form? How to protect yourself against data theft? Familiarize yourself with the basic threats and learn how to defend against them.

Credit over the Internet and the possibility of visual theft

Imagine you want to take a quick loan online. Turn on the computer, fill out the form and … wait a moment! He will look around. Are you absolutely sure that no one can see the information you enter? The first thing you should take care of when taking a loan online is privacy. Take care that when filling out the application no one can view and read your data. Visual theft is an increasingly common form of illegal acquisition of confidential information. The data can be used for illegal activities, such as shopping, taking a loan or carrying out illegal transactions. Therefore, when you take credit online, avoid public places, including coworking spaces or offices.

Online credit and online transaction security

Online credit and online transaction security

Are you afraid that sending data via the Internet is in itself a risk? It doesn’t have to be this way. It all depends on the security of the site. If you decide to make a quick loan online, always check that the website you are using offers an encrypted connection. It takes place thanks to a document called a certificate. This connection guarantees greater security of your data. In short, it consists in the fact that the information during the transfer is encrypted on the user’s computer and decrypted on the bank’s website. In such circumstances, reading or falsifying information is very difficult because it would require breaking the code.

How to avoid identity theft by taking a loan online

How to avoid identity theft by taking a loan online

Did you know that your personal data is of great value to thieves and hackers? Your address, contact number,  number and ID number are enough to make an illegal transaction on your behalf. Thieves can use this information to take out a loan or make expensive purchases. You should protect yourself, especially when taking loans over the Internet. Sometimes, fraudsters can impersonate representatives of financial institutions. Therefore, do not give your data to any third parties, if you are not 100% sure that they are employees of a bank that grants a loan online. If you have any doubts, contact the bank and ask who and in what circumstances will contact you. If you have printed documentation containing your data, never throw it in the trash. When you want to get rid of it, use a shredder.

Online loan as an alternative to the banking offer – what to look out for

Online loan as an alternative to the banking offer - what to look out for

The loan via the Internet, unlike the loan, is only available in banks. The loan can be offered by a non-bank company. There are many loan companies. Before using the services of any of them, first look carefully at their offer and choose the one that best suits your needs.

In addition, check carefully the information about the loan company whose services you want to use. The company granting such loans should provide on its website all necessary information regarding the amount of fees and any possible complaint or extension of repayment time. The lender’s website should also have a special calculator that you can use to easily calculate your installment amount. Also check what position your chosen company has in the lender rankings. Opinions of other Internet users can also be helpful. If you have questions or comments, please contact the lender directly.

Online credit and security: what else is worth knowing?

Online credit and security: what else is worth knowing?

When you take a loan via the Internet or an online loan, always calculate your budget carefully and think about whether you will be able to pay back the money borrowed on time. Credit or loan is a good form of financial support as long as we use them responsibly.