Getting a credit card is a huge responsibility. You need to be responsible for it, and if you're not, you'll end up in trouble. You can't just use your card for everything and expect to get away with it.
If you've ever applied for a credit card or loan, you've probably heard "credit limit." It's what the bank has decided that it's willing to lend you based on your income and other factors.
We know that it can be scary to think about getting your first credit card, but Vista Residences is here to make things easier for you. Here are the tools and knowledge you need to make informed decisions about your finances and get on track with your goals.
What is the credit limit?
The credit limit is the maximum amount of money that you can borrow. It's important to understand that it doesn't mean you have unlimited access to this amount. It's just the maximum amount available to you.
The reason why it's called a limit and not an amount is because it will vary depending on your circumstances. For example, if you have a bad credit score, your lender might not approve your loan application and won't offer you as much money as they would have provided someone with a good score.
Why you should increase your credit limit?
Although there is no exact formula for determining how much credit you should have, a greater credit limit is generally good (provided you handle your credit correctly and don't spend more than you can afford).
Increasing your credit limit is frequently the quickest and most convenient approach to enhance your spending capacity. You'll be better positioned to charge a large purchase or a series of smaller ones with more excellent credit available. Increasing your credit limit is also easier than getting a new card because you'll only have to keep track of one account and bill.
Credit Score Philippines: How to increase credit limit?
When you're trying to increase your credit limit, it can be tempting to call your bank and ask them to raise it. But that's not the best way to go about it. Here's why:
Your bank will want to know why you want a higher limit. They need to understand that it's not just because you want more money to spend on stuff—it has to be for a specific reason.
If your credit was damaged by bankruptcy or foreclosure, the bank might be willing to help by increasing your limit—but only if they think you've learned from your mistake. If they believe you are likely to take advantage of the increased limit and start spending like crazy again, they won't help you!
So what should you do? The first thing is to make sure that you have a good reason for wanting a higher limit—one that shows that you're ready for more responsibility with money management and better at managing debt than before. Then make sure your credit score is as high as possible before making any calls or sending in any applications; this will show that people trust you enough with money and debt so far, so they'll be more likely to help you on how to increase the credit limit.
What is a credit score?
Your credit score affects many aspects of your life, including employment opportunities and even insurance premiums. A good credit score means that lenders are more likely to approve your loan application and less likely to charge higher interest rates or fees. If you want to take out a mortgage or other large loan in the future, there is no question having a good credit score will be beneficial.
Why should I establish a good credit score?
You might not think much about your credit score in the Philippines, but it can make a big difference in your life. Here's how.
Lenders will trust you more.
It would help if you established a good credit score because it's the number one thing that lenders use to determine whether or not you're trustworthy. And when they trust you, they'll give you access to more money and better deals than people who don't have a good credit score.
Having a good credit score also shows landlords and employers that you're someone who pays their bills on time, which is why some landlords require tenants to have a good credit score before renting a condo.
Having a good credit score is essential if you want to get approved for loans or credit cards. If you don't have good credit, then lenders won't trust you as much, and they'll hesitate before lending money to someone who has been rejected in the past.
In addition, establishing good habits when using loans can help protect against financial difficulties later in life (such as bankruptcy).
Lower interest rates
A good credit score will help you get lower interest rates on loans (like mortgages) and other types of credit (like car loans), saving you money over time. It will also help ensure that lenders see you as a responsible person who can be trusted with borrowing money from them.
You don't have to be rich to have a good credit score—all you need is a history of paying bills on time. If you already have a bad credit score or have never had one before, it's never too late to start building one up!
How to increase credit score
Getting a credit card is a huge responsibility. The last thing you want to do is run up debt and not be able to pay it off when the time comes. That's why it's so essential to look up ways how to increase credit scores to get approved for more and better credit cards, loans, and other forms of debt. Here are some tips on how to increase your credit score:
Make sure you use your card regularly.
This will help establish your account as active and in good standing with the bank.
Pay off your credit cards on time.
Always make sure that you're paying off your credit card on time. This will help build up your credit score and look good to potential lenders in the future.
Pay off what you owe each month—or make sure you don't exceed your limit by more than 10%. That way, they'll know they can trust you!
Use one card for all of your purchases.
There's no confusion about which balance belongs to which item (and if something goes wrong, they'll know exactly who to talk with).
Don't close old credit accounts.
Keep all of your old credit accounts open—even if they aren't being used. If anything does happen and you need to borrow from someone, having an open account with a good history will help you get a better loan rate or a better deal than someone who doesn't have any history at all!
Boost your credit score with condo living
The condo life is all about living together in a community. But when it comes to finances, things can get tricky. The perfect condo for you can be hard to find. It's not just about the price, the location, or how many bathrooms it has. It would help if you considered how much money you can put down and how much money you can borrow.
Condos are often more affordable than houses, which is excellent news for anyone trying to build their credit score. That means you could afford an immense amount of debt and still stay within the limits of what your credit score can handle.
Another thing that makes condos great for building up your credit is that they tend to require less maintenance than homes, which means there's less chance you'll get behind on payments and risk damaging your credit score in the process.
If you're looking for ways to boost your credit score to qualify for better loans or get approved for apartments, condo living with Vista Residences may be the answer!
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.