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How to Request an Increase in Credit Card Limit

Triston Martin

Jan 18, 2024

According on how well-managed your finances are, raising your credit card balance may be beneficial or detrimental. Extending your credit limit can give you more freedom and improve your credit ratings by decreasing your credit utilization ratio if you can pay your card bill in full and on time each month. A higher credit limit, though, can worsen your overspending problem if you already have one.

Here are four ways to increase your limit and some guidance on deciding whether doing so is in your best interests.

Opportunities to raise your credit limit

online submission of a request. Customers of several credit card companies can request credit limit increases online. Upon logging in, look for the request submission option. Your income information may need to be updated. A more considerable income might signify more financial stability, which issuers might consider when evaluating your request.

Make a call to the business that issued your card.

When you contact the number on the back of your card, ask a customer service representative if you are eligible for a higher credit limit. The salesperson can ask you why you're making the request and whether your income has recently increased.

Look for automatic raises. Some businesses automatically increase a cardholder's credit limit when they've had the card for a while and have used it wisely.

Ask for a new card.

If you have a track record of making on-time payments on previous credit lines and good credit, your application for a new credit card with a higher limit might be approved. Even if the new card's limit isn't higher than the one, you now have your overall credit limit increase.

Having a larger credit limit has advantages.

If you're a responsible cardholder with good or excellent credit, a higher limit can help your score by reducing your credit use. Your credit usage, or how much of your available credit is being used, significantly impacts your credit scores. Low use suggests that you are living within your means, whereas high use indicates that you are not.

It could harm your credit ratings if you utilize most or all of your credit limit each month, even if you pay off your balances. To maintain a healthy credit usage pattern, use no more than 30% of your credit limit overall and on each card.

If you use your card wisely, a higher credit limit might help your credit by reducing your credit consumption.

Think about your options before requesting a greater limit.

Even if you are sure you can receive a higher credit limit, think about why you want one. If you desire flexibility or reduced utilization, go for it. However, if you frequently find yourself in a financial situation, a higher credit limit is unlikely to help you and might worsen matters. Moreover, keep in mind the following:

Timing is important.

There are advantageous and disadvantageous times to request a raise. Generally speaking, you should wait to get a new card until you've improved your credit, received a salary raise, or both with your present provider. On the other hand, if your income has reduced, you've asked for other lines of credit, or your credit isn't in the best shape, Before requesting more room to manoeuvre on your bank loan, you may want to wait.

It could damage your credit.

If you've recently applied for extra lines of credit, using a credit limit increase may result in a hard inquiry into your credit history, reducing your score.

When will the credit limit be increased?

A request for additional credit may be examined immediately, or it may take up to 30 days. If your request for a larger credit limit is approved, you'll often be able to use your new credit line immediately. If your application is denied, you may resubmit if your situation has changed after six or twelve months.

If You Could Have a Higher Credit Limit, When Would That Be?

There are several favourable times to request a credit line increase. Ask your issuer for a higher limit when you graduate college and begin working. Additional signs that you might be qualified for increased credit access include a pay raise or a relocation to a new, better-paying job.

How to Get Ready for an Increase in Credit Line

Less information will be available to the card issuer to confirm that your credit profile is current, which could hasten the decision-making process.

Before requesting a raise, double-check the address and phone number on file. It is more important to ensure that your employment status and income are accurate. Many credit cards will also look into your current housing payments (mortgage and rent) to ensure that a credit increase won't burden your budget.

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