It is usual that when we request financing such as a loan or a credit card we do not take into account or cannot anticipate unforeseen or extraordinary expenses that may arise in the future. For this we can always resort to increasing credit.
What does it consist of?
It basically consists of getting an increase in the capital that you have granted either in a personal loan or in the credit limit of a credit card.
Achieving this increase or not, will always depend on the entity with which you have the financing, since this will be in charge of studying your profile and the possibilities they can offer you.
Increase credit in a personal loan
You have the possibility of requesting a credit increase for your personal loan if the amount you have is insufficient to cover all your expenses.
How do i do it?
Many entities offer the possibility of requesting a capital increase once the loan has been granted. What you should do is consult the entity directly and one of the great advantages is that many of them offer you the option of being able to do it online.
Once you have requested the extension, the bank will study your request, analyzing your economic capacity and depending on this, they may accept your request or not and assign you a capital increase or another. When you have finally been accepted, the agreed capital will be added to the amount you already had in your loan.
Increase credit on a credit card
The same can happen with our credit card, it may be that at a given time the credit limit that we initially agreed with the entity does not correspond to the need and expenses we currently have.
The entities are aware that this situation is very common and therefore, most offer the possibility of requesting an extension of the credit limit.
How do i do it?
In the same way as with the loan, the entity should be consulted. Many of them offer the possibility of doing so through their website online, without having to go to an office.
What you should know is that you have the possibility of increasing the credit, but always to the maximum that the bank has set. That is, if the maximum credit limit of a card is USD 10,000 and you already have that amount on your card, it will not be possible to request an extension, since the bank does not offer a larger capital.
What if they reject my request?
If the entity finally decides to reject your request, a good alternative to obtain that extra liquidity is to request an urgent loan, so that you can receive the capital that you have requested in the fastest way possible.
It is important to know that although there is this possibility of increasing financing capital, it must be done in a responsible manner. That is, knowing that the greater the capital, the greater the fees we will have to face and that we will have to be able to pay.