Higher credit limit gives you more purchasing power but at the same time, it increases your debts also, if you are not spending responsibly. When you apply for a credit limit raise, lenders follow several criteria to determine your ideal credit limit. Matching those criteria decides the extend of your credit limit. Below are 10 possible reasons for waitlisting your request for higher credit limit:
- You have delayed the repayment at your current lender platform or at other lenders in past 12 months.
- You have opened too many accounts in past 8-12 months.
- Your outstanding debt is more compared to your per month income.
- Your credit utilization is more at the current lender platform or at other lenders.
- Your account was not active for past 3 months.
- You are not having a repayment history in spite of having an active credit account.
- Recent delinquencies reported to credit bureaus.
- Your current credit score is very low.
- You have applied at too many lending platforms in past 3 months.
- You don’t have enough income for a credit limit increase.
Be informed that lenders check your credit report on every application. Your credit report contains all of the above information.