If you find that your current credit limit is not enough and you’d like to increase it, there are some things you should consider first. These things can help improve your chances of getting approved for more credit.
Your credit habits and financial history have a huge influence on whether or not a credit issuer will approve you for more credit. Lenders want to be assured that you can pay off your credit card balances on time. Your income, assets, payment obligations, account behavior, length of account, and credit utilization ratio are all determinants that a lender might ask for, so come prepared.
Some credit card companies may also ask you why you’re requesting an increase and/or how much of an increase you’d like. It’s important that you are pragmatic with your credit increase request. Remember to only take on what you can reasonably pay off in full each month.
Each card issuer will have its own process for requesting and approving credit limit increases. Consult with your provider to find out how it manages credit limit increases.
In general, there are 3 main ways to get a higher credit limit.
How to Get a Higher Credit Limit
- Make a request online or by phone. Many credit issuers have the option of requesting a credit limit increase online through their website or user portal. You simply log in to your account and look for where you can request a credit increase. If some of your information has changed, such as your income, make sure to update it before submitting your request. You can also call your card issuer using the customer service number on the back of your credit card. Ask the representative if you are eligible for a credit increase, and be prepared to answer some questions regarding your request.
- Wait for an automatic credit limit increase. Sometimes your credit card issuer will automatically increase your credit limit without you even asking. This can happen when you’ve had the credit card for a while and have used it responsibly. Lenders may also invite you to increase your credit limit through email or a message on your account portal, so keep an eye out for this type of invitation (but make sure the message is legitimate before entering any account or personal information).
- Apply for a new credit card. If you’ve been steering clear of bad credit habits, you might be able to get approved for a new credit card with a higher credit limit. Even if the limit on the new card isn’t higher than the current one, opening a new line of credit will still increase your total available credit. Plus, opening a new credit card can come with some added perks such as welcome bonuses, travel rewards, and/or a 0% introductory annual percentage rate (APR).