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Fuliza is a mobile credit on M-Pesa offering short-term loans. Discover how to increase your Fuliza limit by managing credit and using Fuliza effectively.

How to Increase Fuliza Limit

Posted on by Tutorials Handbook

Fuliza, Safaricom’s short-term credit facility, is a valuable financial tool that provides users with access to quick loans directly through their M-Pesa accounts. For many users, a higher Fuliza limit can be essential for managing larger expenses or unexpected financial needs. Increasing your Fuliza limit involves demonstrating your creditworthiness and actively managing your financial behavior.

READ ALSO: How to Register for Social Health Insurance Fund (SHIF)

This comprehensive guide will delve into various strategies to help you achieve a higher Fuliza limit and make the most of this financial service.

What is Fuliza? 

Fuliza is a mobile credit facility offered by Safaricom through its M-Pesa platform, designed to provide users with short-term loans to cover immediate financial needs. Launched in early 2019, Fuliza allows M-Pesa users to access additional funds directly from their mobile phones, making it a convenient option for managing unexpected expenses or bridging temporary cash flow gaps. The service operates as an overdraft facility, enabling users to borrow money even when their M-Pesa accounts have insufficient funds, provided they have an active Fuliza account.

Fuliza functions by extending a line of credit that users can draw upon whenever needed. When you make a transaction and your M-Pesa balance is insufficient, Fuliza automatically covers the shortfall, allowing the transaction to proceed. Users are then required to repay the borrowed amount along with a service fee within a specified period. The service fee varies based on the amount borrowed and the duration for which the credit is used, and it is deducted from your M-Pesa account once you make a repayment.

The application process for Fuliza is integrated seamlessly within the M-Pesa platform. Users do not need to submit any physical documents or undergo a lengthy approval process. Instead, Fuliza is accessible through the M-Pesa menu, where users can apply for the service and view their credit limits. The eligibility for Fuliza depends on various factors, including the user’s credit history, transaction patterns, and overall usage of the M-Pesa platform.

Fuliza has become a popular financial tool in Kenya due to its accessibility and ease of use. It provides a flexible solution for managing short-term financial needs, particularly for individuals who may not have access to traditional banking services. By leveraging Fuliza, users can handle emergencies, make necessary purchases, or manage cash flow more effectively, all while enjoying the convenience of mobile technology.

How to Increase Fuliza Limit

1. Maintain a Positive Credit History

Your credit history is a critical factor in determining your Fuliza limit. Safaricom assesses your creditworthiness based on your borrowing and repayment history. A positive credit history reflects your reliability as a borrower, which can lead to a higher credit limit. Here’s how you can maintain and enhance your credit history:

  • Consistent Repayments: Ensure that you repay your Fuliza loans on or before the due date. Timely repayments not only demonstrate your ability to manage credit responsibly but also build a positive track record with Safaricom.
  • Avoiding Defaults: Defaulting on your loans can severely impact your credit score and limit increase potential. It’s essential to avoid missed payments and manage your loans effectively.
  • Debt Management: Keep track of all your financial obligations, including Fuliza loans and other debts. Proper debt management helps prevent overextension and ensures that you can meet all your payment commitments.

Maintaining a strong credit history with Fuliza shows Safaricom that you are a trustworthy borrower, increasing the likelihood of a limit increase.

2. Use Fuliza Regularly

Frequent use of Fuliza can positively influence your credit limit. Safaricom often rewards users who actively use and repay their Fuliza loans with higher credit limits. Here’s how regular usage can benefit you:

  • Frequent Borrowing and Repayment: Regularly borrowing and repaying small amounts can build a strong relationship with Safaricom. This consistent activity demonstrates that you are a responsible user and capable of managing higher credit limits.
  • Gradual Increase in Loan Amounts: As you build a positive repayment history, consider gradually increasing the amounts you borrow. This approach shows that you can handle larger sums of credit, which may lead to a higher limit.

By being an active and responsible user of Fuliza, you make a compelling case for Safaricom to consider increasing your credit limit.

3. Maintain a Healthy M-Pesa Account

Your M-Pesa account’s health plays a significant role in determining your Fuliza limit. A well-managed M-Pesa account indicates financial stability and can positively impact your credit limit. Here’s how to keep your M-Pesa account in good standing:

  • Regular Transactions: Engage in regular transactions using your M-Pesa account. This includes making payments, transfers, and deposits. Active usage signals to Safaricom that you are a reliable customer.
  • Positive Balance: While Fuliza is a credit facility, maintaining a positive balance in your M-Pesa account is a good practice. It reflects your ability to manage funds effectively and reduces the risk of defaulting on credit obligations.

A healthy M-Pesa account enhances your overall financial profile and can lead to a higher Fuliza limit.

4. Check for Updates and Notifications

Safaricom periodically reviews Fuliza limits and updates based on user behavior and policy changes. Staying informed about these updates can help you take advantage of potential increases in your Fuliza limit. Here’s what to look for:

  • Notifications from Safaricom: Pay attention to any messages or notifications from Safaricom regarding changes to your Fuliza limit. These notifications can provide insights into limit adjustments or eligibility criteria for increases.
  • Promotional Offers: Occasionally, Safaricom may run promotions or special offers that impact Fuliza limits. Be aware of such opportunities and take advantage of them if applicable.

Being proactive and informed about updates ensures you do not miss out on opportunities for increasing your Fuliza limit.

5. Contact Safaricom Customer Service

If you believe you qualify for a higher Fuliza limit but have not seen any changes, contacting Safaricom customer service can be beneficial. They can provide personalized assistance and information on your Fuliza limit status. Here’s how to approach customer service:

  • Inquire About Eligibility: Ask customer service representatives whether you are eligible for a Fuliza limit increase and what criteria you need to meet. They can provide detailed information about your current status and potential for an increase.
  • Seek Guidance: If there are specific steps you need to take or additional requirements to fulfill, customer service can guide you through the process. They can also offer tips for improving your credit profile and increasing your limit.

Engaging with customer service helps you understand your position better and receive direct assistance with your Fuliza limit.

6. Improve Your Financial Profile

Enhancing your overall financial profile can positively influence your Fuliza limit. A robust financial profile demonstrates your ability to manage credit and finances effectively. Consider the following strategies:

  • Increase Your Income: A higher and stable income improves your financial profile and enhances your eligibility for a higher Fuliza limit. Ensure your income is reflected accurately in your financial transactions.
  • Reduce Other Debts: Paying down or clearing other debts can improve your creditworthiness. A lower debt-to-income ratio shows that you are financially responsible and can handle additional credit.

Improving your financial profile boosts your attractiveness as a borrower and increases your chances of receiving a higher Fuliza limit.

7. Be Patient and Persistent

Increasing your Fuliza limit may require time and consistent effort. Safaricom’s assessment processes might take time to reflect your positive credit behavior. Here’s how to stay patient and persistent:

  • Monitor Progress: Keep track of your Fuliza usage, repayments, and any updates from Safaricom. Regularly reviewing your financial behavior helps you stay informed about your progress.
  • Maintain Good Habits: Continue practicing good financial habits, such as timely repayments and responsible borrowing. Persistence in maintaining these habits often leads to eventual improvements in your Fuliza limit.

By staying patient and consistently managing your Fuliza account effectively, you enhance your chances of achieving a higher limit.

Conclusion

Increasing your Fuliza limit involves a combination of maintaining a positive credit history, using the service regularly, managing a healthy M-Pesa account, staying informed about updates, and improving your overall financial profile. By following these strategies and engaging with Safaricom’s customer service when needed, you can enhance your Fuliza limit and better manage your financial needs.

READ ALSO: How to Pay SHIF via M-Pesa

Responsible borrowing and financial management are key to achieving and sustaining a higher Fuliza limit, ensuring you can make the most of this valuable credit facility.

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