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How to increase the credit card limit

How to increase the credit card limit

increase the credit card limit

Getting a credit card limit increase can feel like moving up your job position, and while it's not exactly such a monumental event, it's still a great time in your credit life, especially if you're new to it. credit or recovering a bad credit score.

An increase in your credit card limit feels like a thumbs-up, letting you know that you have been responsible for spending your credit card.

It is important to know that thirty percent of your credit score is based on your level of debt. An important part of that is your credit utilization or the amount of available credit that you are using . In this sense, an increase in the credit limit will reduce your use of credit, assuming that you maintain the same balance or pay it. This results in a higher credit score.

How to get a higher limit on your credit card?

Ready to increase your credit limit? There are two basic strategies: a slow and a fast one. I will explain both below.

Method # 1: Wait for Automatic Increases

Many credit card companies increase your credit limit automatically , without you having to lift a finger.

If you show that you are a responsible user and that you use the card enough to guarantee a higher credit limit, you could get a higher credit line every six to 12 months .

You can increase your chances of getting an automatic credit limit increase:
  • Building a positive payment history; never make late payments or have payments returned.
  • Using the card frequently, which generates fees for the bank. If you don't use the card often, they likely won't offer you a credit limit increase.

Method # 2: Request a raise

Don't you want to wait? So there is something you may not know: can contact the card issuer of credit to request a higher credit line.

The application process depends entirely on the banking institution, therefore it can be extremely easy or very difficult: Bank of America, for example, includes an application link in your online account, while Chase requires you to call customer service .

However, before taking this step, keep in mind that a request for a credit card limit increase often results in a thorough inquiry about your credit reports . Since the issuer is considering you for a larger line of credit, the process is similar to applying for a card itself.

While a thorough investigation may lower your credit scores slightly, the negative effect is outweighed by the benefits of a higher credit limit.

When you submit a request for a credit limit increase , your issuer can request your annual income or monthly home payment, information that it will use to assess your risk as a borrower. Then the issuer will make one of three decisions:
  • Accept your request for increase
  • Counter offer with a minor increase
  • Deny your credit limit increase
In the case of a denial, you will generally have to wait a while before trying again. In the meantime, make sure you keep your payment history spotless and continue to use the card . If you really want to improve your credit utilization rate, you can also try applying for a new card.

How to get a credit increase online?

As I mentioned earlier, the credit increase application process depends on each bank, therefore, there are some that allow you to do the process online. In general, these are the steps you should follow :
  • Log into your credit card account
  • Look for the link or the section "Request to increase the credit limit"
  • Complete all the requested information

How to increase the credit card limit over the phone?

If you are unable to request an increase online, or prefer to do so over the phone, be prepared to share the following information with the representative:
  • Address and identification
  • Current Employment Status
  • Total monthly and yearly gross income
  • Monthly mortgage or rent payments
  • Amount of credit limit increase requested
When you've gathered all that information, it's time to make the call.
  • Dial the number on the back of your credit card.
  • Tell the customer service representative that you want to request an increase in your credit card limit. You can be transferred to a different representative in a credit risk department.
  • Ask for your raise politely - Remember that credit card issuers are not required to say yes.
  • The issuer can accept, counter, or reject your request immediately, or say that they should wait for a notification or letter online.

To keep in mind

  • Only request an increase in your credit card limit at the right time - a good time to try is after you get a raise, as banks consider your income.
  • Try a cash back card : If you just want to improve your credit utilization rate, you can apply for a new card (with a sign-up bonus!). These are some of the best credit cards to earn cash.
You may not get as much credit , as each credit card issuer may only be willing to grant you a certain amount of credit on all of your accounts. Therefore, increasing the credit limit on one card could eliminate your ability to increase your limit on other accounts or even open new ones.

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