How to Increase Your Credit Limit and Save Money

Requesting a higher credit limit in certain cases can allow you to make bigger purchases and improve your credit score. It’s also easy to do.

It might appear that your credit card company is in complete control. They may seem like they are dictating from far away, much like the man behind “The Wizard of Oz”. However, you may be more flexible than you realize.

Credit limit increases are one of the easiest requests you can make to your credit card company. Credit increases allow you to spend more on your card.

This could be for many reasons. Continue reading to learn how to increase credit limits.

There are many reasons to increase your credit limit

Reasons to request a credit limit increase may be:

  • Want to increase your credit score? As long as your new credit limit is not used up, increasing your credit limit can decrease your credit utilization which can in turn help boost your credit score.
  • Larger purchases are required: If your credit limit keeps increasing or you plan to purchase a large item, you may need a greater credit limit. But make sure you have a plan for paying off your credit card so that you don’t get into debt.
  • Do you need more money for emergency situations? An emergency fund is a great way to safeguard yourself from financial shocks. If you don’t have enough credit, it is possible to get sufficient credit.

But, just because you have the ability to request an increase in your credit limit doesn’t mean that you should. These reasons might be worth reconsidering.

  • Your credit card limit is already high. If you rely on credit cards to make ends met, increasing your debt will not help. You can instead work with a National Foundation for Credit Counseling certified counselor who offers affordable one-on-1 assistance.
  • If you apply for a car loan or a mortgage, many creditors will conduct a credit check. This will be visible on your credit report, and could discourage potential lenders to approve you for a loan.

How to increase your credit limit

It is easy to increase your credit limit by asking your credit card company. To increase your chances of success, you need to know some information.

If you request a credit limit increase, credit card companies will often conduct a hard credit check. This can impact your credit score so it’s a good idea to wait until you feel confident about your approval chances. This will ensure that your credit score is not affected.

These are the factors that influence that decision:

  • Have your income levels increased? Credit card companies might grant credit limit increases if your income has increased. If your income is higher, you can probably afford to pay more debt.
  • How many months have your credit card been open? Credit cards companies are more likely than not to grant your request if you have had your card open for a few months. Experian suggests waiting at least six month.
  • Have you been managing your payments well? Before granting you more, lenders want to see that you are managing your existing debt. If you don’t miss any payments, your chances of success are higher.
  • What are the economic conditions like? Credit card companies can adjust their purse strings to suit the times. This can be frustrating as you don’t have control.

Here’s how you can increase your credit limit if you are ready to move forward.

Secured credit cards are available

A secured card is a popular choice for people who are just starting out or looking to improve their credit score. The cards are different in that you deposit money with the credit company to protect yourself from defaulting on the debt.

A secured credit card allows you to deposit more money into the account, which will increase your credit limit. To increase your secured credit limit, you should deposit more money to the account.

To ensure that you are following all rules and regulations, check with your secured credit card company.

Request an increase in your credit limit

You might be able to request an increase through your online account, secure message or by phone call.

Online account

Many credit card companies permit you to request an increase in your credit limit online. This option is available in the drop-down menus of your online account.

Secured message

If the option is not available when you log in to your account you can send a secure message online from your credit card portal asking for a credit limit increase.

Telefonische Kontaktaufnahme

To chat with someone immediately, you can also call the customer support number on the back your credit card.

You should be prepared to give information such as your current monthly income and how much you would like to increase credit limits. It is possible that you will need to give your current monthly income, your rent or mortgage payments, and other financial details.

Most cases, it is faster to submit a credit limit request online or talk to a customer service representative by phone. They will often inform you immediately if you have been approved. It can sometimes take up to 30 business days.

Each credit card issuer works in a different way. For more information on how to request credit limit increases from eight companies, please follow the links:

  • American Express
  • Bank of America
  • Barclaycard
  • Capital One
  • Chase
  • Citi
  • Citizens Bank
  • Learn

Do not wait for your credit limit to increase automatically

Many credit card companies offer automatic credit line increase options, or will at least inquire if you are interested when you log into your account.

If you take care of your credit card debt, this can increase your chances of getting approved. Pay on time and keep your credit utilization low. Autopay is a great option, as you won’t be worried about missing a payment.

What if your creditor refuses to allow you to increase credit limit?

The credit card company doesn’t have to grant your request to increase credit limit.

Your credit card company may send you a letter explaining the reason or give advice over the phone if your application is denied. Contact the company to find out why it didn’t provide a reason.

You may still have options if this happens.

Consider the following suggestions and decide what is most appropriate for you.

  • Verify the reason for denial: If your issuer denies your request due to your credit score , verify your credit report . Sometimes errors can make your credit appear worse than it really is.
  • Wait six month and then try again. There is no limit to the number of times you can request an increase in your credit limit from your card company, but experts recommend that you wait at least six months.
  • You can apply for another credit card. You can limit your credit score by applying within two weeks after your denial. credit companies view these inquiries as one.

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