Credit is a concept that shows the relationship between the lender and the borrower. In this relationship, the lender is responsible for licensing the use of money or goods to the borrower for the loan within a certain time. The borrower is obliged to pay the amount or the value of the goods when they are due to repay loans. Credit has an important position for the accumulation, make use of temporarily idle funds for business development.
What is a credit card? Credit Card is the cards that are most commonly used, accordingly, the card holder is allowed to use a line of credit without interest to the procurement of goods and services at the business establishments, hotels, airports… where accept these cards. We call this as a credit card because card holders are advancing a consumption limit without pay immediately, pay only after a certain period. Also, because of the above characteristics, people calling the credit card as debit delayed effect (delayed debit card) or deferred.
What is the credit limit? The credit limit is the maximum amount that a bank offers you to use. This limit is granted depends on the information that the bank verification of regular income and a stable level of income, the repayment obligation to the existing debt (even in other bank debt) and the level of credibility of each specific customer the. The bank always focuses on the customers’ credit history, and adjusted if appropriate. You can request a credit line increase after a period of use, when there is a significant change in the factors mentioned above and prepare all documents to prove that change. Some banks have good policies, can automatically raise your limit after some time (usually from over six months onwards), if you frequently use the card.
In any case, you need to maintain a good credit history with the bank by always paying the minimum (usually 5% of total debt last month) time, to easily request adjust their quotas. Procedures for requesting a credit line increase is simple. All the things that you need to do is fill out the inquiry form in order to increase credit limits, preparing copies nearest labor contracts, salary statements certified by the bank for the last three months. The bank will approve a new credit line for you when getting a full set of documents. If done by a credit card deposit, you just take more deposits and fill out an application for credit limit increases.