If you’re a frequent shopper, you might have come across Afterpay. It’s a popular payment option that lets you spread out the cost of your purchases over several weeks or months without any interest fees.
But what happens when you’ve hit your Afterpay limit, and you need to make a purchase that’s worth more than what you can currently afford (not a camper trailer, of course, but something bigger than your usual purchases)? At this point, you might start wondering: how to arrange my Afterpay limit increase?
In this article, we’ll look at how to raise your Afterpay limit and make your shopping experience even more convenient.
Stores that manage their Afterpay payments efficiently can dramatically improve customer experience – learn how to track your cash flow.
How Is Afterpay Limit Determined?
When you first sign up for Afterpay, you’ll be assigned a maximum spending limit of $500. However, this limit can be increased over time, depending on your shopping behavior and repayment habits. It’s important to add a replacement card to your account if you stop Afterpay automatic payments at any time, so that you don’t end up in default.
Afterpay uses several criteria to determine your account limit, including:
- Whether you’ve been declined a purchase at checkout due to insufficient funds
- How quickly you paid back previous purchases
- The length of time you’ve had an Afterpay account
- The frequency of orders placed, on-time payments, and late payments
If you’ve had your account for a long time and have consistently made your repayments on time, you’re more likely to have a higher Afterpay limit. On the other hand, if you’ve been making late payments or have a history of declined transactions, your limit might be lower.
How to Increase Your Afterpay Limit
Now that you know how Afterpay decides on account limits, here are some tips to help you increase your spending power:
Use Your Afterpay Account Responsibly for a Long Time
The more you use your Afterpay account, the more likely you are to see an increase in your spending limit. However, this only applies if you’re using your account responsibly and making your repayments on time. If you’re consistently missing payments or making late payments, your limit might be decreased instead of increased.
To use your Afterpay account responsibly, make sure to only purchase items that you can afford to pay back. Don’t rely on Afterpay to make purchases that are beyond your means. Additionally, try to pay off your balance as soon as possible, rather than waiting until the last minute.
Choose What to Add to Your Afterpay Payment Options: a Debit Card or a Credit Card
Afterpay requires you to add a debit or credit card to your account. Each option has its pros and cons. Using a debit card might show you have a stable income, which can play in your favor in the long run. However, it might not give you the same spending power as a credit card. If you have a credit card with a high limit and good repayment history, adding it to your Afterpay account might help increase your spending limit.
Keep in mind that using a credit card can also be risky, as it can lead to overspending and accumulating debt. If you decide to use a credit card, make sure to only use it for purchases that you can afford to pay back, and avoid carrying a balance.
Avoid Late Payments or Declined Transactions
If you’ve ever had a payment declined or have made a late payment on your Afterpay account, it can negatively affect your spending limit. To avoid this, make sure to always have enough funds in your account to cover your repayments. If you’re unable to make a payment on time, reschedule it as soon as possible to avoid incurring any late fees or penalties.
Additionally, if you have any outstanding balances on your account, try to pay them off as soon as possible. Even if it’s a small amount, paying it off can demonstrate to Afterpay that you’re a responsible borrower and help increase your spending limit.
Keep Your Afterpay App Updated
Make sure to download the Afterpay app to your mobile device and keep it updated. The app can help you keep track of your purchases and repayment schedule, and it can also provide you with reminders when a payment is due.
Ask for a Credit Limit Increase
If you’ve been using Afterpay for a while and have a good track record of making payments on time, you may be eligible for a credit limit increase.
To request an increase:
- Log into your Afterpay account and navigate to the My Account section.
- From there, select Request a Credit Limit Increase and follow the prompts.
Keep in mind that Afterpay may require additional information, such as income verification, to approve your request.
Pay Off Your Balance Early
Paying off your Afterpay balance early is another way to increase your spending limit. When you pay off your balance, Afterpay considers this a positive account behavior and may be more willing to increase your credit limit. Plus, paying off your balance early means you’ll have more available credit to use for future purchases.
Avoid Overusing Afterpay
While it can be tempting to use Afterpay for every purchase, overusing the service can actually harm your credit limit. Afterpay sets a limit on the number of orders you can have at one time, and making multiple small purchases or having several orders pending repayment can negatively impact your credit limit. Instead, try to use Afterpay for larger purchases and pay off your balance as soon as possible.
Monitor Your Credit Score
While Afterpay doesn’t directly impact your credit score, it’s important to keep an eye on your score and financial health overall. Late payments, missed payments, or maxing out your credit cards can all harm your credit score and make it more difficult to secure loans or credit in the future. By monitoring your score and taking steps to improve your creditworthiness, you may be able to increase your Afterpay limit and other forms of credit as well.
Contact Afterpay Customer Support
If you’ve tried all of these methods and still haven’t been able to increase your Afterpay limit, it may be time to reach out to customer support. Afterpay has a dedicated support team that can assist you with any questions or concerns, including credit limit increases. They may be able to offer additional tips or insights into how to increase your limit or work with you to find a solution for your needs.
Increase Afterpay Spending Limit: Conclusion
In conclusion, increasing your Afterpay limit is possible with some effort and good account management. By using your account regularly, making payments on time, and following these tips, you can increase your limit and take advantage of Afterpay’s convenient payment system. Remember to use Afterpay responsibly, avoid overusing the service, and monitor your credit score and overall financial health to ensure you’re on track to meet your goals.
