Fri. Feb 26th, 2021

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Apple launched its first credit card in August 2019, and exactly seven months after that Apple card According to Adharshila Advisors, there were an estimated 3.1 million users. Whether you applied to withdraw the benefits of the card, privacy or special financing on Apple products, you may be wondering if it is possible to increase your credit limit.

There are many reasons why you want more credit. Here’s how you can request to increase the credit limit of the Apple Card and what you need to do to qualify.

How to increase Apple card limit

When you first apply for an Apple card – or any other credit card for that matter – the card issuer will count you Debt-to-income ratio Your income is compared to the amount of loan given by you. It tells the issuer if you can borrow more and how much, and it sets you up. credit limit Accordingly.

To request an Apple card limit increase, follow these steps:

  1. Open the Wallet app on your phone.
  2. Select Apple Card.
  3. Tap the More icon (a circle with three dots).
  4. Select the message icon to send your request to the card’s issuer, Goldman Sachs.

You can also scroll down to the credit statement to review your current credit limit. After submitting your request, a representative may ask you some questions to determine your eligibility. At this point, ask if the card issuer will run a new hard check on your credit report.

Goldman Sachs will evaluate several factors to determine whether to approve your request.

How to qualify for an Apple card credit limit increase

In general, the requirements to obtain a higher credit limit on a credit card are the same as when they were first approved for the account. The card issuer wants to make sure that you are able to repay any debt on the card. “These are fairly standard among all credit card companies,” says chairman Howard Dvorkin.

If your credit score has improved and your DTI has decreased, the increase in credit limit is not guaranteed, but your position is good.

In addition to these basic credit and income requirements, Goldman Sachs also reviews your Apple Card activity. As a result, it may take at least six months for the issuer to collect enough information and consider raising its limit.

Why do you want to increase the limit of your Apple card

It is important to note that if you have already maxed out your card limit – or you are close to it – due to overspeeding, it may not be in your best interest to gain access to more credits.

If this is the case, then take steps to address your balance and work to pay it off. This process will not only provide you with the available credit you are looking for, but it will also help improve your credit score. With this in mind, here are some reasons why you can request to increase your Apple card limit:

You want to reduce your credit usage. Your Credit utilization rate The percentage of your available credit that you are using at a certain time. Even if you are paying your bills in full every month, your utility may be limited if your limit is relatively low, which can damage your credit. Increasing your credit limit and keeping your spending down will lower your usage rate. “Higher credit ceilings can give you a little more flexibility and breathing room,” says Jason Krueger, a certified financial planner with Ameriprise Financial.

You want extra credit just in case. It is generally not a good idea to place large emergency expenses on credit cards – this is an emergency fund. But if you are not able to save money and Creation of an emergency fund, A credit card is better than resorting to a payday loan. Adding available credit to your Apple Card will make it easier to avoid high-interest loan options. Higher limits will also make it easier for you to make big purchases.

Your credit status and income have improved. If you achieved a relatively low credit limit when opening your Apple Card account, but your credit score and income have improved since then, asking Goldman Sachs to consider new information can help you achieve a higher credit limit Because you are less of a debt risk. This is true if you have repaid other debts and your debt-to-income ratio has decreased.

Before requesting a credit limit increase, Check your credit score and report To see where you stand. If your credit is in excellent shape, now may be the time to apply. If not, use the information found in your credit report to address the issues and improve your score.

What if you are refusing to raise a credit limit?

Even if you have opened your account for the first time, your credit and finances have improved, there is no guarantee that you will qualify for the Apple Card credit limit increase. The card issuer may consider your other debts, your history with Apple Card, and even macroeconomic conditions.

Raising credit limits can be difficult during an economic downturn. In fact, during the coronovirus epidemic, many Credit card companies reduced credit limit Dvorkin said that to reduce the risk of potential omissions. Some issuers also canceled the cards.

In most cases, however, the denial is likely personal and is related to your credit, income, or debt issues. If you did not before applying, check your credit score and report to determine if you can address.

This may include giving incorrect information on your credit report, paying off other debt and credit card balances, and past due payments.

It may also make sense to just apply for a new credit card. “In some cases, getting approved for a new card is actually easier than a credit limit increase,” says Dworkin.

This approach may be particularly noticeable if your credit is not in the best shape. Some banks offer credit cards designed for people with fair or bad credit.

Just be sure to consider both the benefits and drawbacks Opening a new credit card. While this may give you additional available credit, there is no guarantee that you will get the amount you are looking for, and like getting a higher credit limit, the risk of being in debt when you open a new card Increases.

Maintain good credit for future credit applications

Now you will not know when you will have to increase your next loan, credit card or credit limit. Creating and maintaining a good credit score can make it easier to get approved without the need to work on your credit first.

“The biggest component of an individual’s FICO score is their payment history,” Krueger says. “So the most important thing anyone can do is to continue their payments on time.” The second most influential factor is your credit usage, so it is also important to keep your card balance low.

It is also important to avoid applying for credit often. Every hard check of your credit report can indicate your credit score, and Apply for multiple loans or credit cards In a short period the lender may see you as a default risk.

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