Your Credit Limit" width="100%" height="145px" />With more than 50 million redeemed miles under her belt, Becky Pokora is a rewards travel expert. She's been writing about credit cards and reward travel since 2011 with articles on Forbes Advisor, BoardingArea, The Points Guy and more. Her redemptio.
Becky Pokora Credit Card Rewards ExpertWith more than 50 million redeemed miles under her belt, Becky Pokora is a rewards travel expert. She's been writing about credit cards and reward travel since 2011 with articles on Forbes Advisor, BoardingArea, The Points Guy and more. Her redemptio.
Written By Becky Pokora Credit Card Rewards ExpertWith more than 50 million redeemed miles under her belt, Becky Pokora is a rewards travel expert. She's been writing about credit cards and reward travel since 2011 with articles on Forbes Advisor, BoardingArea, The Points Guy and more. Her redemptio.
Becky Pokora Credit Card Rewards ExpertWith more than 50 million redeemed miles under her belt, Becky Pokora is a rewards travel expert. She's been writing about credit cards and reward travel since 2011 with articles on Forbes Advisor, BoardingArea, The Points Guy and more. Her redemptio.
Credit Card Rewards Expert Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
| Managing Editor, Credit Cards & Travel Rewards
Updated: Aug 1, 2024, 8:06am
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Your Credit Limit" width="100%" height="145px" />
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When you are first approved for a credit card, the issuer will assign you a credit limit based on your credit score, credit history, income and existing financial obligations. Some card issuers will offer higher credit limits once you establish a responsible fiscal relationship with them, but you may also request a credit increase if and when you need it.
The actual process of requesting a credit line increase is straightforward. However, there are several ways to improve the odds of approval.
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
There’s no precise measurement for how much credit you should have, but generally speaking, a higher credit limit is a good thing (assuming you manage your credit responsibly and don’t spend more than you can afford).
A credit increase is often the fastest, easiest way to increase your spending power. Having more available credit at your disposal means you will be better positioned to charge a large purchase or numerous smaller ones. Increasing your credit limit is also simpler than getting a new card since you’ll only have one account and bill to keep track of.
There are several opportune times to request a credit line increase. Graduating from school and entering the workforce is a great time to ask your issuer for a higher limit. Getting a pay raise or transitioning to a new, higher-paying job are also signals that you might qualify for additional credit access.
While each lender has specific criteria for granting increases, only established cardholders should expect to receive one. Sensibly, banks will only lend extra money to customers they have reason to trust, and that trust must be built over time by making on-time payments and keeping your balances in check.
If you’ve been approved for a credit increase, you can request another as soon as six months later. If you were denied, you’ll want to wait until you can demonstrate a pattern of responsible card use. Your odds will increase if you improve your payment habits or if your credit score has gone up for other reasons.
Making sure your credit profile with the issuer is up-to-date can help you obtain a quick decision since the card issuer will have less information to verify. Before you request an increase, verify the address and phone number on file.
More importantly, make sure your employment status and income are accurate. Many issuers will also verify your current housing payments (mortgage and/or rent) to ensure a credit increase won’t overextend your budget.
You also should review your credit report in advance to make sure there are no errors or fraudulent activity. Consumers can access their three free credit reports each week (one each from Experian, Equifax and Transunion) through AnnualCreditReport.com. If there’s incorrect or fraudulent activity, you’ll want to fix your credit report before requesting a credit increase.
Also, if possible, you’ll want to pay down existing credit card balances. Card issuers will deem you a lower risk if you have lower existing debt levels.
These are all steps you should take regularly, even if you’re not planning on requesting a credit increase in the immediate future.
Typically, a credit limit increase request can temporarily lower your credit score by five to 10 points, but in the long run, a credit limit increase may actually improve your credit score.
When you request a credit limit increase, many issuers may pull an updated copy of your credit report, which is known as performing a hard inquiry. This inquiry will become part of your credit record and often results in a small, temporary ding to your score.
However, if your request is approved and your credit limit is increased, you will have more available credit and a potentially lower credit utilization rate. These factors can lead to substantial increases in your credit score for as long as you hold the card.
The top benefit of a higher credit limit is the ability to spend more on a credit card, especially if you started with a relatively low limit.
By charging more to your card, you have the opportunity to earn additional rewards points or cash back as well as take advantage of potential benefits like extended warranties or cellphone insurance. Typically, cash or debit card purchases don’t offer these same benefits.
Additionally, a higher credit limit can result in a lower credit utilization rate, which may even improve your credit score and help you to qualify for loans or more favorable rates.
Even if you don’t anticipate overspending your current limit, requesting a credit increase can still be advantageous. When you keep your spending consistent but have a higher overall limit, your credit utilization rate will drop. This can actually increase your credit score, as other lenders see that you’re not relying on your entire credit line.
A good rule is to keep your credit utilization rate at 30% or lower. Thus, if you have a $5,000 limit, this means carrying a $1,500 balance or less. If your credit limit was increased to $10,000, that same utilization rate would mean you could comfortably carry a $3,000 balance instead.
There are two ways to approach a credit increase: an online request or a phone call to your card issuer.
If you think you have a strong case for a credit increase, making a request online can be simple and effective. Most card issuers have a menu option to request a credit increase once you’ve logged into your account. Often, it takes just a click or two to submit your information, and you may even receive instant approval. Other times, you may need to provide additional information by secure message or phone.
Generally, this option is best if you think your odds of receiving a credit increase are high (the case is clear and does not require additional explanation). Incidentally, not all issuers will allow you to dispute the decision or reapply immediately; there may be a waiting period after denial.
If you don’t think your case is straightforward, you may want to call your card issuer and speak with a representative so you can provide information beyond what is available through online forms.
Calling is also a good way to find out what type of credit check your issuer requires in order to process your request. Soft inquiries won’t be evident to other lenders who evaluate your credit report, but hard inquiries are visible for at least 24 months. Hard inquiries can also temporarily lower your credit score by a few points. A hard pull vs. a soft pull on your credit matters if you anticipate applying for a mortgage, auto loan or new credit card in the near future as you’ll want to protect your credit score.
You may also want to make your request by phone if you have an urgent need for a credit increase, such as a large, imminent purchase. The associate you speak with can expedite the information collection process so that you don’t have to wait for follow-ups. Of course, you still might not get an instant decision.
Card issuers should provide the reason you were denied, in which case you should work on resolving the issue before making another increase request.
If you have a limited credit history, you might need to establish your track record. Card issuers need to see a history of on-time payments and responsible credit usage to determine whether you qualify for more credit access.
If you’re unsure of the specific reason your request was denied, you’ll want to improve your general creditworthiness by:
Lastly, if you were denied despite having excellent credit, you might need to use that specific card more often. Card issuers don’t always issue additional credit to cardholders who aren’t using the credit they already have.
When approved for a credit line increase, you’ll have access to the full amount immediately. If you requested the increase to make a specific purchase, be sure to stay within your planned budget and have a strategy to pay off the balance.
Some cardholders might be tempted to overspend with access to more credit. If that sounds like you, don’t request more credit than you actually need. Although a credit line increase can benefit your credit utilization rate, it may bebetter to not have the temptation present. After all, responsible credit usage is the foremost way to maintain or improve your credit score.
More often than not, a transaction will be declined if the purchase amount will put you over your credit limit, potentially leaving you without a way to cover the cost.
However, sometimes a charge will sneak through and put you over your credit limit. If this happens, you may get hit with fees from your card issuer. In addition, your issuer may raise your interest rate for a period or even close your credit account, especially if this happens more than once.
Keep in mind that your credit score can drop before you get close to your credit limit. As a reminder, keep your credit utilization rate under 30% for a healthy score. If you were to go over your limit, even by just a few dollars, you should expect a substantial drop in your score. That’s a red flag for credit issuers.
Tracking your monthly spending in relation to your credit limit simply requires logging into your account online or via an app (or calling the toll-free number on the back of your card).
Cardholders who have multiple credit cards with the same issuer may be able to shift part of their credit line from one card to another. This is an easy way to increase the spending power of one card without the issuer taking on additional risk. This can help if you need to make a large purchase in a single transaction or if you prefer the rewards or other benefits of a specific card.
Applying for a new card is an alternative as well. This can be a great way to take advantage of new or ongoing cardholder benefits, such as a welcome bonus, travel rewards program or 0% introductory APR. This is also a way to obtain additional credit once you’ve already received the maximum credit line a single issuer will extend to you.
It’s easy to request a credit line increase, but several factors impact your chances of approval. Being a responsible cardholder and asking for the increase at the right time will improve your odds of getting the full amount you request.
