Want to know how to get a higher credit limit? Check out our latest blog post for tips on how to improve your credit rating and get a higher credit limit.
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Check your credit report
One way to get a sense of what credit limit increase you might be able to get is to check your credit report. “ Reviewing your credit report will give you an idea of where you stand with the lender in terms of your creditworthiness,” says Barry Paperno, a consumer operations manager for FICO, a provider of credit scores.
If your score has improved since you applied for the card, you may have a better chance at getting a higher credit limit. You can get free copies of your report once a year from each of the three main credit bureaus — Experian, Equifax and TransUnion — at AnnualCreditReport.com.
Find your credit utilization ratio
Your credit utilization ratio is the percentage of your available credit that you’re using. For example, if you have a credit limit of $1,000 and a balance of $500, your credit utilization ratio is 50%. The lower your ratio, the better.
To get a sense of your credit utilization ratio, log into your online account and look at your statements. If you don’t have online access to your account, you can call your credit card issuer and ask for the information.
Once you know your credit utilization ratio, take steps to lower it if it’s high. One way to do this is to pay down your balances so you’re using less of your available credit. Another way is to ask your issuer for a higher credit limit. If you have a good history with the issuer, it may be willing to give you a higher limit without requiring you to pay an annual fee or obtain a new card.
Pay your bills on time
One of the best ways to improve your credit score is to pay your bills on time. Payment history is the biggest factor in your credit score, so making your payments on time, every time, can really improve your chances of getting a higher credit limit. If you’re not sure where you stand, you can check your credit report for free once a year at AnnualCreditReport.com.
Another good way to improve your credit score is to keep your balances low. The second biggest factor in your credit score is called “credit utilization,” which measures how much of your available credit you’re using at any given time. So if you have a $2000 limit and a balance of $1000, that’s 50% utilization. The lower your balances are, the lower your utilization will be, and the better it will be for your score.
Try a credit limit increase request
If you make your credit limit increase request online, you may get an instant decision. If you request a credit limit increase by phone, you will generally receive a decision within 30 days.
If your credit limit increase is approved, the new credit limit will take effect immediately. If your credit limit decrease is approved, the new lower credit limit will take effect in two billing cycles.
There is no cost to request a credit limit increase or decrease, and your request will not affect your credit score.
When you request a credit limit increase, we will review your account history and current financial situation to determine if you can handle the additional responsibility. If we approve your request, your new credit limit will take effect immediately. You will receive notification of the new credit limit in a monthly statement or letter within 30 days of the decision.
If we do not approve your requested credit limit increase at this time, we may offer you a different credit limit based on our review of your account history and current financial situation. You can accept this offer or decline it and keep your current credit limit.
Use a credit monitoring service
Monitoring your credit is important for many reasons. It can help you keep track of your progress, catch errors and identify signs of identity theft. Perhaps most importantly, monitoring your credit can help you get a higher credit limit.
Most credit card issuers use your credit score to determine your credit limit. The higher your score, the higher your limit is likely to be. So, by monitoring your credit score and keeping it high, you could potentially get a higher credit limit from your issuer.
Of course, there are other factors that issuers take into account when setting limits. But if you have a good credit score, it’s certainly worth a try. You could even ask for a higher limit when you first apply for a card.
There are several different ways to monitor your credit score. One option is to use a free service like Credit Karma or NerdWallet. Another option is to sign up for a subscription service like Identity Guard or Credit Sesame. Whichever route you choose, make sure you keep an eye on your score so you can take action if it starts to drop.