A credit card comes with a set interest rate and credit limit depending on the type of card you choose and your creditworthiness. There is usually a range of values for the limit and rate and the details on your application will determine the values.

These values remain constant for a while until your credit rating improves. This comes about because of paying your credit card bills on time.

Depending on the card you own you can add someone else to your card so that they can be able to charge it as well. This allows both of you to use that same card for various transactions without causing any red flags. This can be done online or by calling the involved company as long as the primary holder, secondary holder or whoever has power of attorney makes the request.

Credit line increase

The credit line is the amount of money that a card holder can use in the form of credit from that account. Some cards have the option of a ‘cash credit line’ meaning that a specific amount from the credit limit can be offered as cash from over the counter cash advances, ATM cash advances, bank overdrafts, same-day online cash advances, returned payments, cash equivalents and applicable transaction fees. Exceeding the cash credit line will lead to declined cash credit requests until the cash credit balance is paid but no penalties are incurred.

In the event that you would like to increase the amount you can access or spend on your credit card you can ask your bank for a credit line increase. Its approval will depend on your activity and behavior with your card and balances.

Balance transfers

Once you have a credit card but have another credit card with a balance, you can be able to transfer one account balance to another account provided the accounts are not from the same company or its subsidiaries. You can transfer balances from student loans, credit cards, personal loans and auto loans.

Details required for this transaction include the account number, name of the creditor and the amount to be transferred. Once the transaction is approved it will take a few days for it to take effect. The account with the transferred balance will not close automatically and you will therefore have to call the creditor to ask them to close the paid-off account if it has been paid in full.