Many Nubank customers, who have a purple credit card, question why they have been a customer for so long and have not increased their limit, while others are surprised by a high limit, even incompatible with their income. But how is the limit for each customer defined? Check out!
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How is the card limit set?
The credit card limit is a loan that the financial institution allows the customer to use over a cycle, which usually lasts for one month. That way, on the due date, the user must pay for what was spent. And, if he pays correctly, without delay, the amount he must pay is exactly what he spent throughout the cycle. However, in case of delay, interest is charged.
How do institutions carry out the analysis?
To lend money, you need to have confidence that the person who borrowed the amount will pay it back. Therefore, banks and institutions that provide credit measure this trust through risk analysis.
This trust can be diminished by some factors, which can be:
- Negative name;
- Low score;
- Proof of income;
- Outdated data in the market;
- Debt history.
My limit is not supported
If the institution does not have access to sufficient information to draw the most appropriate profile of the user, it may happen that the initial limit granted is not compatible with the person’s financial reality.
That’s why credit analyzes are carried out periodically, allowing the customer to receive a limit increase as the institution gets to know their habits better. In this way, the more the card is used and paid on time, the more the bank learns about the user and gains more trust.
Zero real limit?
When the user receives the card with zero reais of limit, he has access to the build limit function, widely used in the United States and United Kingdom, but new in Brazil.
This type of card has the main purpose of helping those people who have low income, little information, negative name or debt history, to have access to credit.
With this card, it is possible to make purchases in installments in physical and virtual stores, however, the customer must reserve an amount from their account. For example, if they deposit BRL 300.00, they will have a credit limit of BRL 300.00 to make purchases in installments and subscribe to streaming services.
The institution gets to know the user better and realizes if he will be a good payer by offering a pre-approved limit.
How to increase the limit?
In order to increase the limit, as stated earlier, it is necessary to gain the trust of the institution, so the information that helps is:
- Keep your income up to date;
- Pay the invoice on time;
- Centralize all spending on the main card.
If the customer’s name is negative for some debt elsewhere, the credit will probably be denied.
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