How to Increase Credit Limit in Scotiabank Effectively
Knowing how to increase your credit limit at Scotiabank can help to build your purchase power. But while improving your credit limit is effortless, the bank can accept or deny your request. Thankfully, many tips can help you boost your credit limit at Scotiabank.
Paying with a credit card is the easiest way to purchase goods and services on credit. So, you can request an increase in credit limit by sending an online request to the bank or calling them. Once you apply, the bank will check whether you are eligible for a raise.
If you qualify for a raise, you could get instant approval. However, your request could get denied if you don't qualify for the raise. This guide explores the tips to increase your credit limit.
Steps on How to Increase Credit Card Limit Scotiabank
Increasing your credit card limit at Scotiabank is one of the easiest things to do when you follow the correct procedure. Here is how to send the request online;
- Start by logging into your account
- Navigate to the Accounts page and check for Credit Card or Line of Credit
- Click on Additional Services
- Tap on Increase your Credit card or line of limit
- You will see the instructions to follow.
Once you submit your request, the bank will check if you qualify for a credit card limit raise, depending on your credit history. The bank may approve your request or ask for more information
Applying for a credit card limit increment is perfect for customers who are sure to get approval. However, if the bank denies your request, you cannot apply for the credit limit raise again until after a certain period.
The second way to apply for a credit increase is by making a phone call. If you are unsure about getting approval after applying for a raise using the credit card app, call the financial institution and speak to a representative.
Talking to a representative allows you to submit all the information required to check if you are eligible for an increase. It is also a perfect method of asking for a raise if you don't want there to be evidence you asked for one. Your online application will be visible to other lenders, and it can also temporarily lower your credit score.
Asking for a raise through a phone call is also helpful if you want a credit increase to make a huge purchase. Speaking to a representative will speed up the process, so you won't need to wait a long time. However, it does not guarantee that you will get a credit increase. You can still get a "request denied."
What If Your Request Is Denied?
Getting your credit increase request denied can be frustrating if you want to make a huge payment. Many financial institutions give feedback on reasons for the denial, determined mainly by factors on your credit reports like:
Payment history is one of the most crucial determinants of your credit score and qualifications for an increase. It refers to how often you pay your bills, including the credit card. If you make payments past the due dates or don't make total payments, you will have a negative credit report, reducing the lenders' trust.
You Have Multiple New Credit Accounts
Every time you apply for a credit card or line of credit, the information shows on your credit report. Applying for multiple credit cards is a red flag to credit card issuers. If the bank sees such a report on your account, you could get a "request denied."
You Have Not Used Your Credit Card Long Enough
Unlike other financial institutions, Scotiabank gives new members credit cards without checking their credit history. So, it is an advantage to the newbies because they can build a positive history by using the card wisely, which can increase their credit score.
If you have not used your credit card for a long time, the bank won't be able to tell how trustworthy you are with more significant amounts of money. Also, if you fail to pay the credit card on time, it could lower your credit score, leading to a denial of a limit raise.
You can work on your reasons for a credit limit raise to improve your credit score. Ensure you pay all the bills on time, use the credit card more, and pay any other credit accounts you have.
Avoid Spending Over Your Credit Card Limit
If this answered how to increase the credit limit in Scotiabank and you had your request accepted, congratulations! The bank will immediately give you access to the new amount, allowing you to make your desired big purchase.
However, it’s important to remember to stick within the credit card limits and pay the loans on time. The transaction will fail if you have a bigger bill than the credit limit. Also, small charges like transaction costs sometimes accumulate and pass the credit card limit by small amounts.
Avoid purchases that could make you spend more than your credit card limit. The credit card issuer may impose a fee on your card if it happens. Even worse, you could pay the card with higher interest for some months or get a closure of your credit account.
Can You Get A Credit Limit Increase Without Asking?
Financial institutions recognize people with good credit scores and reports and offer them credit limit increases without asking. However, this can make or ruin your future credit score.
If you get a credit limit increase without asking, ensure you use your card responsibly to keep a positive credit score. Using more than your credit limit and failing to pay the debts on time could drag you to your previous low credit scores.
Alternatives to Getting A Credit Limit Increase
A credit increase could tempt you to impulse buy items and mean more debt. Instead of asking for a higher credit limit, you can;
Use Different Cards or Pay Some Amounts Using Cash
If you want to make a big purchase that your card cannot pay, you can split the bill between several credit cards. You can also pay part of the bill using cash, reducing the amount you will pay on a credit card.
Paying in cash is also a perfect way to save on currency exchange fees. For example, if you want to make purchases in Canadian Dollars but your credit card is in USD, you will incur currency exchange rates, which can be high and add up to the bill.
Exchanging your currency at Knightsbridge FX is one of the best ways to avoid huge foreign exchange fees. We offer more favorable currency exchange rates than banks and other exchange agencies, and the process is straightforward.
Most people want to increase their credit limit to make more significant purchases. However, although you don't pay for the items in cash, the small expenses increase with time, and you end up paying more.
You can protect yourself from higher bills by adjusting your spending habits. For example, consider saving money to make purchases or use the card to pay off the debt immediately.
Knowing how to increase your credit limit at Scotiabank can help you increase your purchase power. You can apply for an increase on your Scotiabank credit online account or call the bank. The bank will check your credit score to determine if you qualify for a raise. Note that you could either get approval or a request decline using either of the methods.