[Ki Ha-young's Life Card] Need a Lump Sum? Temporarily Increase Your Credit Limit

When Large Sums Are Needed for Marriage, Funerals, or Car Purchases
Temporary Credit Limit Increase Possible Through Card Company Application

Photo by Getty Images Bank

[Asia Economy Reporter Ki Ha-young]Is there anyone these days without at least one credit card? In modern society, anyone who wants can have a card. Credit cards have brought unparalleled convenience to daily life. Now, wherever you go, you can easily see people paying with credit cards or smartphones. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers various stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, from introducing new cards to industry behind-the-scenes and guides for card beginners.

#1. Mr. A, who exhausted his card usage limit preparing for his wedding, recently requested a temporary limit increase from the card company to pay for the wedding hall. Although he could pay in cash, he did not want to miss out on the points he could earn by paying with a card.

#2. Mr. B, who is planning to buy a car, applied to the card company for a temporary credit limit increase before making the payment. The current limit on his card is about 6 million KRW, but he plans to raise it to 10 million KRW to pay by card and use installment payments for the rest.

Sometimes, you suddenly need a large sum of money. Especially when preparing for a wedding or buying a car, you need more money than usual. In such cases, you might consider various options, such as using installment services or taking out a small loan.

But did you know that when paying by credit card, you can temporarily increase your usage limit to make a payment? According to the Financial Supervisory Service, if you are worried about exceeding your credit card limit due to large expenses like weddings, funerals, or car purchases, you can request a temporary limit increase from your card company.

When a temporary limit increase is granted, the amount you can pay by credit card in a month increases. If you raise the limit within a budget you can manage, you can make relatively large purchases without paying additional interest, and you can also enjoy additional services such as points provided by the card company depending on the payment amount.

You can apply for a temporary limit increase through the card company’s customer center or website. After a review process by the card company, you can receive a temporary increase in your card usage limit. In the case of weddings, you need to submit supporting documents such as wedding invitations. Usually, the credit limit is increased for less than three months, and the temporary limit increase service may be restricted depending on your credit rating.

The credit card temporary limit increase service is useful when you suddenly need to make a large purchase. However, if the amount is beyond what you can afford, rather than applying for a temporary limit increase, why not reconsider whether the purchase is truly necessary?