How to Increase Credit Card Limit

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Increase Credit Card Limit – The limit of your credit card decides how much you can spend each month before paying off some of your credit card’s balance.

If you find credit limit insufficient and believe you are creditworthy, you can apply for a credit card limit increase.

But, be aware that credit limits affect not only your expenses but also your credit score.

How to Increase Your Credit Card Limit?

Credit card issuers increase your credit limit either automatically or when you request.

Automatic credit limit increase happens every 6 or 12 months if you had been responsible with your credit card spending and found eligible due to your timely payments. Some credit card issuers require a request for increasing your credit card limit.

You can apply either by calling the customer service or online. There may be charges a fee while increasing your credit card limit. The amount you will be charged depends on your credit card issuer. For example, some of them require you to pay off 25% of the increase while other issuers may have fixed increasement fees.

How To Apply Higher Credit Card Limit?

Since credit card limitations depend on your credit profile, you need to provide necessary information. Such as your monthly income, the amount of credit limit increase you want and the reason why you want that increase.

The credit card issuer may also want to check your credit report via either a hard or a soft inquiry. You should remember the fact that a hard inquiry will appear on your credit report for two years and may damage your credit score. A hard inquiry on your credit report will not be necessary for an automatic increase. While credit card limit requests generally result in a hard inquiry. Lastly, if your credit limit is secure by a deposit, you need to pay more towards your security deposit.

Some Factors Affecting The Rejection

Being approved for a limit increasing depends on several factors and is not guarantee.

  • If your account is too new,
  • Have changed your credit limit recently,
  • If you do not meet minimum income requirements,
  • Have a secured credit card account,
  • Bad Credit history seems risky.

You may be less likely to qualify for a higher credit card limit and need to apply again after improving your weak points.