A Quick Guide on How to Increase Your Credit Limit

You need a higher credit limit.

Increasing your credit limit can increase your credit score. With proper spending, it can lower your credit utilization and boost your credit score. A higher credit score can make it easier to get loans and more credit in the future.

And in a worst-case scenario, a higher credit limit can come in handy during an emergency when you need financial help.

Having access to high credit and multiple credit sources is part of good financial management.

But what if you don’t have a lot of credit, but want a higher credit limit?

Increasing it isn’t out of the question. With some patience and these financial tips, you can increase your credit limit and reap the benefits. Here’s some quick financial advice on how to do that.

Method #1: Wait for an Increase

One way of increasing your credit limit is to wait. It’s not uncommon for credit card companies to offer a credit limit increase.

You may get one automatically if you manage finances well by making your payments on time and not carrying a large balance each month. Monitor your spending habits and pay off your balance each month.

You don’t have to wait for an increase though. You can always request one.

Method #2: Request an Increase

Before you request an increase, make sure you have stayed on top of your credit card bills. If you haven’t paid your bills on time, you are less likely to have your credit limit increased.

Check your annual income too. Has it gone up since you first received your card? If so, it will increase your chances of getting a credit limit increase.

In addition to those things, you need to know your employment status and your monthly expenses (rent or mortgage).

Now that you’re ready to request an increase, find your card servicer’s site. Log in and request an increase. This process will look different for each card servicer.

For example, if you’re looking at how to increase credit limit with Capital One, you will need to log into their site, request a credit line increase, and wait for a decision. Within a few days, they will mail you their decision.

Depending on your creditor, they may automatically increase your credit limit to a pre-determined amount. Some may allow you to choose what you want your credit limit increase to be.

Keep in mind that if you just got your credit card, you may be unable to request a credit increase for a few months. If you previously requested a credit increase, creditors usually require you to wait at least six months before another request.

Some Final Financial Tips

So you’ve requested a credit limit increase, but you were denied. Now what?

Don’t panic. Every card issuer will have their own reasons for denying your request. If they don’t tell you why you can contact them to find out. Keep trying, and with some patience, you will get your credit increase.

For more financial tips, check out other articles in our finance section.

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