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What is a credit limit?
A credit limit is the maximum amount of money that a bank allows you to borrow on your card. It is essentially your personal line of credit, which you can use anytime and for any purpose. Globus Plus allows you to obtain a credit limit immediately after applying for a card through the GlobusPlus mobile app.
The established limit is not just a number, but the result of a thorough analysis of solvency and credit history. The bank takes many factors into account, from official income to history of using banking products. The amount of the permitted sum directly depends on the financial reliability of the client.
Advantages of using a credit limit
Before considering ways to manage your credit limit, it is important to understand its main advantages for the user. Here is why this product is so attractive:
- the ability to instantly access additional funds without references or documents;
- ease of use — money is available 24/7 via a card;
- the ability to repay the debt in instalments;
- a grace period during which no interest is charged;
- cashback for using credit funds;
- the ability to participate in promotions that banks often offer to credit card users.
A credit limit is not only a convenient financial tool, but also an indicator of financial responsibility. Its competent use forms a positive history and opens access to more favourable conditions in the future.
Getting a GlobusPlus credit card is very easy. All you need to do is download the app and complete a quick registration process, after which it will be activated automatically. In addition to banking funds, the card offers attractive cashback deals from the bank and its partners, as well as a 62-day grace period. Most users note that having a sufficient credit limit helps them feel more confident in unpredictable situations. And the ability to repay the debt in instalments makes it as comfortable as possible for the budget.
How to increase your credit limit
Doing this in the GlobusPlus app takes just a few clicks. To update your financing settings, simply follow these simple instructions:
- Go to the ‘Other’ section;
- click on profile settings;
- in the “Settings” section, select the ‘Credit limits’ option;
- select ‘GlobusPlus credit card’;
- enter the desired limit amount.
The more actively you use your card and repay your debt on time, the higher your chances of increasing your credit limit. The bank analyses whether the customer can be trusted with funds and may independently offer to increase the limit for those who actively use its services. At the same time, if you do not use your card for a long time or often miss payments, the maximum available limit may be reduced.
Why they don't give a credit limit
Many people are concerned about why they are not given a credit limit or why a minimum amount is set. What influences these factors and can they be changed?
The main reason is a negative credit history. This is a kind of financial dossier that contains information about all your loans and payments on them. If you have ever been late with a payment or failed to pay off your debts on time, this may influence the bank's decision. To remedy the situation, you need to demonstrate a responsible approach to using financial services and carefully comply with the terms of the agreement.
A negative result may be due to a lack of stable income or formal employment. In such cases, it is sometimes necessary to contact the financial institution in person and provide proof of solvency in the form of a statement of income for the last six months. This is a good solution when a person has got a new job or a promotion, but the bank is not yet aware of this.
The customer's overall credit load is also important. If you already have several active loans, this may be a reason for rejection. An additional factor is sometimes the complete absence of a credit history — in this case, the bank has no data to assess your solvency.
How many credit limits can a customer have?
Ukrainian legislation does not specify how many credit limits a customer can have. Therefore, in theory, you can obtain credit cards from different banks. However, it is important to remember that each financial institution analyses your solvency and overall credit load. An excessive number of loans may result in a refusal to set a new limit or lead to a decision to reduce the existing one.
Having a large number of credit cards is not always an indicator of financial stability. Experienced users recommend having 2–3 credit cards from reliable banks and actively using one of them. This strategy helps to build a positive credit history and obtain more favourable terms for using funds.
