Every now and then, your credit card limit may be increased. What a pleasant surprise, to open a bill and discover a new – larger – number under the words “credit limit!”
Credit card companies do this for long-term customers with a good payment history. It’s their way of rewarding you for your loyalty, as well as ensuring that you stick with them for years to come. But you don’t have to wait for that magical day in order to increase your credit limit. If you haven’t been offered an increase, but you want or need one, it’s a relatively simply process to apply. If you are looking to increase your credit limit and have the financial security to do so, you may want to look at getting a Platinum Credit Card as these generally come with higher credit limits, so long as you have a very good credit history.
Low Interest Credit Card from Westpac
The Westpac Low Rate is a no-frills credit card that offers a genuinely low interest rate on purchases, a low annual fee, and a balance transfer option which could be useful if you looking to consolidate your credit cards.
- $59 p.a. annual fee
- 1% p.a. for 12 months (reverts to 13.49% p.a.) on purchases
- 0% p.a. for 18 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
You don’t have to be shy about it; Westpac won’t worry that you’re about to go off on a gambling spree that requires a greater source of funding! Remember, they have access to your full account history. With a few keystrokes, they can instantly see if you are the kind of person who takes borrowing and repayment seriously. There are a number of very legitimate reasons why you might require an increase to your credit card limit. You may have a large purchase coming up that requires extra funding, or you may have experienced a tougher time financially in recent months that just needs a temporary credit boost to cover. Maybe you’re away from home and don’t have easy access to the funds in your bank account. As long as you’re really not about to go on a gambling spree, go ahead and apply. Bear in mind that you can always lower your limit again at a future date: when the item is paid off, when the storm has passed in your personal life, or when you return home.
Criteria for an increased credit limit
Of course, you can apply to have your credit card limit raised to whatever you want, but Westpac will not simply rubber-stamp any request. For example, asking for the limit on your recently-acquired platinum card to be increased from $8,000 to $100,000 likely won’t be met with a favourable response. While some increases in credit limit can be made solely based on good repayment history with that card, larger increases will require assessment of your financial situation. The process of applying for an increase is not as arduous as when you first applied for the credit card, but it’s not quite as simple as a two-minute phone call.
Westpac credit card limits per card type
The limits that apply to your Westpac credit card will depend upon what level of card you are carrying. As their names suggest, gold and platinum cards offer much higher credit limits than standard cards. If you have, for example, the Westpac Low Rate MasterCard, your credit limit can only go so high. When applying for an increase, they’ll let you know. If your credit limit is already at the maximum, you’ll need to apply for a gold card if you want access to more credit.
What to watch out for
Having a high credit limit, even in the case of funds that are not being used, reduces your debt-to-income ratio. Australia has the highest household debt to disposable income ratio in the world, so clearly this is an issue for a large number of Australians. Your debt-to-income ratio doesn’t only affect your ability to increase your credit card limit; it affects your ability to take out personal loans, vehicle loans, and home mortgages. So be careful that you don’t increase your credit limit so much that you limit your other options! While there is no set-in-stone rule, the general consensus across the globe is that a person should not be spending more than 33% of their gross income towards debt payments.
Ways to apply for an increase to your Westpac credit card limit
If you are an existing personal online banking customer, applying for an increase to your Westpac credit card limit is as easy as 1-2-3!
- Sign in to your online account.
- Complete the application form.
- Click “submit.” In most cases, your personal details will be auto-filled in the blanks, making it a speedy process.
You may receive a response in as quickly 60 seconds! If you prefer talking to someone, simply call the number on the back of your credit card and select the options that will direct you to an agent who can increase your limit. Again, you should have an answer before you hang up the phone. If you don’t have a Westpac credit card yet, select the card that suits your needs here: Compare Westpac Credit CardsBack to top