How to Know That It’s Time to Increase Your Credit Limit

When times are rough, and your spending habits have risen, you may need a credit limit increase. Requesting a credit limit increase will help you stock up on essentials, pay for emergencies, or increase buying power alongside more credit card rewards.

Before asking for a credit limit increase, evaluate how it will influence your credit score and whether it will assist or hinder your finances.

When to apply for a credit limit increase, how it affects your credit score, and how to ask are discussed.

When should you increase your credit limit?

Credit card issuers grant you a credit limit after you’re accepted. Credit limit usually increases with card age. You will also rack up more credit card rewards as you use your card.

Only request a credit limit increase if you won’t overspend. Unpaid card purchases will incur the standard APR unless you have a 0% APR period

When to increase your credit limit:

Good credit

Good or excellent credit scores show responsible credit management. This tells the card issuer you can handle a higher credit limit.

Increased income

If you recently obtained a raise, updating your credit card income may result in an automatic credit line increase. Request a credit limit increase and input your new income. This informs the lender you can pay more.

Changes in spending

Marriage, homebuying, and starting a family might change your spending patterns. You may need a higher credit limit for groceries or furniture.

When should you request a credit limit increase?

If you’re short on cash, you may want to delay requesting a credit limit increase. Credit limit rises are risky. Your score could drop if your card issuer checks your credit report to approve a credit limit increase.

Here are some bad times to request a credit limit increase:

Bad Credit

If your credit is bad, you won’t get a credit limit increase. Requesting a credit limit increase may lower your score. A better approach is to build your credit and seek an increase when you have good credit.

Reduced income

A recent layoff, demotion, or job switch can impair your prospects of a credit limit increase.

When the card was maxed

You shouldn’t ask for more money if you’re nearing your credit limit and holding a balance. Prioritize debt repayment.

When you opened the card or requested a credit limit increase

Before requesting a credit limit increase, many card issuers expect you to wait three months. Some cards need a six-month wait between credit limit increases.

Credit limit increase request

Automatic or requested credit limit increases might occur. Annual credit limit increases may occur if your card issuer updates your income. You can usually increase your credit limit online or by phone. You can make online requests using your card issuer’s mobile app or online account.

Call your card issuer to request an increase and explain why. You can also ask what credit card rewards are available for you so you can redeem or take advantage of them. This can be helpful if you don’t have additional income but need more credit and want to reassure lenders you can repay it.

When it’s time to increase your credit limit, have the following handy:

• Revenue
• Status
• Paying rent (rent or mortgage)
• You can sometimes suggest a new credit limit.

In most circumstances, you’ll receive a fast decision on whether to increase your credit limit. If your credit limit is raised, don’t overspend. Make on-time, full payments. If you’re acquiring a credit card for the first time, choose a provider and product with credit card rewards you can benefit from.