How to Raise Your Credit Limit

You’ve been using your credit card responsibly and paying your bill on time each month. So, how do you go about asking your credit card company for a credit limit increase?

Checkout this video:

Check your credit report

Your credit limit is the maximum amount you can borrow from a lender. It may also be called your credit line or borrowing limit.

Most lenders review your credit report when you apply for a new account or request a higher credit limit on an existing account. They use the information in your report to help them decide whether to approve your application and, if so, how much credit to extend to you.

When you check your own credit report, you may find errors that could keep you from being approved for new credit or receiving a higher credit limit. You can correct these errors by following the steps below.

1. Check your credit report from all three national credit reporting agencies—Equifax®, Experian®, and TransUnion®. You can get a free copy of your report from AnnualCreditReport.com.
2. Look for errors, such as:
-Inaccurate personal information, like your name, address, Social Security number, or date of birth
-Inaccurate account information, like the wrong type of account, the wrong balance, or an incorrect payment history
3. If you find any errors on your report, contact the creditor directly to fix the mistake. You can also file a dispute with each of the credit reporting agencies online or by mail. Include copies (not originals) of any documents that support your position and explain why you are disputing the information—for example, “I never missed a payment on this account.” Include a copy of your Credit Report with the items in question circled. Mail your disputes to:
Experian
Consumer Dispute Center
PO Box 4500
Allen, TX 75013

Equifax Credit Information Services, Inc.
PO Box 740256 Atlanta GA 30374

TransUnion LLC Consumer Dispute Center PO Box 2000 Chester PA 19022-2000

Find out your credit score

If you’re not sure where you stand, order a copy of your credit report to find out your credit score. You’re entitled to one free report every year from each of the three major credit bureaus — Equifax, Experian and TransUnion — so you can check your score as often as you like. A high credit score will give you a better chance of being approved for a higher limit, so it’s worth checking before you apply. You can also check your score for free on Credit.com.

Contact your credit card issuer

If you’ve been a good customer and managed your account responsibly, you may be able to contact your credit card issuer and ask for a higher limit. Here are a few tips:

– Make sure you have a good payment history with the issuer. If you’ve been late with payments or have had other problems, your request is likely to be denied.
– Know your current credit limit and how much you currently owe. This will give you a sense of how much room you have to increase your limit.
– Have a specific reason for wanting a higher limit. Whether it’s for large purchases or emergency expenses, be prepared to explain why you need the increase.
– Be prepared to accept a lower limit than what you asked for. Your issuer may not be willing or able to give you the full amount you requested.

If your request is denied, don’t despair. You can try again in a few months or look into other options, such as balance transfer credit cards, which may offer higher limits.

Request a credit limit increase

Most credit card issuers will automatically increase your credit limit if you have a history of making on-time payments and using a low percentage of your available credit. If you don’t want to wait for an automatic increase, you can request a credit limit increase from your issuer.

There are a few things to keep in mind when requesting a credit limit increase:

-Request an increase from your current issuer. Issuers are more likely to approve an increase for existing customers.
-Keep your request reasonable. If you’re requesting a significant increase, be prepared to provide an explanation for why you need it.
-Check your issuer’s policy on hard inquiries. Some issuers will do a hard inquiry on your credit report when you request an increase, which could temporarily lower your credit score.

Wait for a decision

If you have a credit card with a high interest rate, you may be able to lower your interest rate by asking your credit card company for a lower rate. You can also ask for a higher credit limit.

Most credit card companies review your account every six to twelve months to see if you deserve a lower interest rate. If you have been paying your bills on time and maintaining a good credit score, there’s a good chance you will be offered a lower interest rate.

If you have been using your credit card responsibly for some time, you may also be able to request a higher credit limit. Some card issuers will give you an automatic limit increase after you’ve demonstrated responsible behavior with the account. If your issuer doesn’t offer automatic increases, you can still request an increase by calling customer service or sending a secure message through the card issuer’s website.

In order to get approved for a higher credit limit, you will need to provide financial information so the issuer can assess your ability to make higher payments. Be prepared to provide information such as your current income, monthly housing payment, and other debts you are responsible for paying each month.