How To Increase Your Credit Limit

The limit on your credit card is an important metric that can affect your purchasing ability and, indirectly, your credit score. You can’t request a limit when you sign up for a card — it’s set by issuers based on a number of factors — but you can request a new limit after you’ve had the card for a certain amount of time. A higher credit limit allows access to larger borrowing amounts, and it can also plump your credit score if you leverage an increase wisely.

There are several ways to increase your credit limit, including requesting it directly via your issuer’s website or over the phone, or by simply working to increase your credit score. Some issuers reward good credit behavior by automatically increasing your credit limit. 

Here’s what to know.

Ways to increase your credit limit

Think the credit limit on your card is too low? Ask for an increase. Getting a higher credit limit is fairly straightforward, with four primary options available:

1. You can contact your issuer online via the app or online portal.
2. You can call the issuer’s customer service phone number.
3. You can check for an issuer card offer in the mail or online.
4. You can apply for a new card that will bump your overall available credit.

1. Contact your issuer online

Perhaps the simplest way to pursue a credit limit jump is to log in to your credit card account and look for an option such as “request credit limit increase.” Click on the option or offer and answer any questions asked.

Many issuers require you to complete a form, so expect to share updated information about your income or monthly housing expenses and specify the amount of additional credit you are seeking before applying.

2. Call customer service

“You can commonly request a higher credit limit by simply phoning your card issuer’s customer service number, often found on the back of your card,” says Ted Rossman, Senior Industry Analyst for Bankrate.

Similar to the online request process, you will need to provide the same fundamental information about your financial situation. Be ready to justify why you are requesting a credit increase and prepare to offer more details on your earnings and expenses. It could take several days for your request to be approved, or you may be given the green light while on the phone.

3. Accept an issuer offer

Keep an eye out for preapproved increase offers from your issuer, which could arrive via mail, email or when you log into your account.

These automatic increase offers provide a simple way to access more credit without having to jump through hoops — or undergo a credit check — since the issuer has already vetted your eligibility and creditworthiness. Boost your odds of getting one of these offers by updating your income information within your credit card account online.

4. Apply for a new card that will increase your overall available credit

If it’s time for a new card anyway, one that better fits your lifestyle and needs, you can boost your overall available credit by applying for a new credit card all together. Choose a credit card that offers you perks and rewards you can actually use, rather than one that will simply expand your available credit.

However, try to avoid closing your existing card since this can reduce the length of your credit history and your available credit, both potentially lowering your credit score.

What to do if your request is denied

If your request for a credit increase is declined, find out why and take actionable steps. Your issuer should be able to tell you the reasons.

Once you know, you can begin to address those reasons. That might mean paying down your debts, improving your credit score and ensuring there are no inaccuracies on your credit report. Sometimes an issuer will decline your request due to no fault of your own — the issuer might believe you already have enough credit in relation to your income, for example.

Talking to your issuer might reveal more options you can take. If you have another card with the same issuer, you might be able to lower the credit limit of one card and shift some of the credit to another one. But once you’ve run out of options with your existing card, prepare to look elsewhere.

Should I increase my credit limit?

Of course, the most important question to begin with is considering if you actually need a credit limit increase in the first place. There are pros and cons to having more purchasing power available to you. More available credit will likely lower your credit utilization ratio, but may lead to temptation to overspend. 

Ted Rossman says a credit limit increase is probably a good idea if it only results in a soft inquiry and you won’t use the higher limit to overspend.

If, on the other hand, you aren’t financially stable or are considering applying for additional credit, such as a mortgage or auto loan, it’s likely best to wait to request a credit limit increase.

The bottom line

Always consider your financial goals and spending habits before seeking a higher credit limit. Even if you’re not ready to request a credit increase, if you demonstrate responsible credit card use and keep your overall credit rating healthy, your issuer may eventually offer an automatic increase.

Frequently asked questions about increasing your credit limit

• How often can you request a credit line increase?
  

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  You can request a credit line increase at different periods depending on the credit card issuer. Some issuers may allow you to request a credit limit increase every six months, while others it may be every 12 months. It’s important to check with your specific credit card issuer to understand their policy on requesting credit line increases.

• How much can I increase my credit limit?
  

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  The amount by which you can increase your credit limit varies, but typically, credit card companies may allow you to request a credit limit increase from a few hundred to a few thousand dollars, depending on your creditworthiness.

• What is considered a high credit limit?
  

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  A high credit limit is subjective and can vary among individuals based on factors such as income level, credit history and the credit card issuer. A credit limit above $10,000 could be considered high for some individuals, while others may view anything above $20,000 as a high credit limit. It ultimately depends on individual financial circumstances and creditworthiness.