Do you ever wish your credit limit was higher? Chase offers some of the best credit cards on the market. It’s important to realize that your credit limit doesn’t have to remain the same year after year.
This article will explain your options for requesting a credit limit increase with Chase. We will also show you how you can avoid some of the drawbacks of having more spending power with your Chase credit card.
Why You May Want a Credit Limit Increase
Before you make your request, it’s important to know why you want a higher credit limit. Having a higher credit limit can be good or bad for you financially depending on how you manage your credit card spending. While a higher limit does give you more spending power, it doesn’t mean that you have to max out your credit card as a result.
In fact, you should do the opposite. Increasing your credit limit can make it easier for you to keep a lower overall credit utilization. And lowering your credit utilization ratio is something that can help improve your credit score.
Your credit utilization ratio is the amount of credit you’re using divided by the credit you have.
For example, if you have a card with a $1,500 limit and want to keep your utilization under 30%, your balance wouldn’t be higher than $450. If your credit limit gets increased to $3,000, a balance of $900 would be equivalent to a 30% utilization.
A higher credit limit doesn’t mean you have to spend more than you can afford to pay back. Credit card interest is expensive ranging anywhere from 16% to 24% on average. Still increasing your credit limit can help you afford a larger purchase that you wish to pay off over time with a 0% APR promotion for example. Or, it can simply be used to give you more wiggle room when trying to maintain a utilization below 30%.
How to Request a Credit Limit with Chase
Option 1: Over the Phone
While some credit card companies allow you to request an increase online, Chase doesn’t do this. In fact, they clearly state on their website that you must call customer service.
Start by calling the number on the back of your card and ask a representative to assist you. A Chase rep will ask to pull your credit again to approve you for a credit limit increase. Keep in mind that this will show up as a hard pull on your credit report.
Make sure you have your account number and financial information ready as well. Once an increase is approved, your new credit limit will be available immediately.
Option 2: Automatic Credit Limit Increase
Occasionally, you may receive a letter from Chase or a notification when you log in online that your credit limit has been increased. There are no guarantees that Chase will ever decide to do this. However, it’s a nice sign that you’re probably doing something right in terms of managing your card.
To increase your chances of getting your credit limit increased automatically, remember to pay your bill on time and pay more than the minimum payment. You can always set up automatic bill pay for your Chase card each month. This will ensure that you don’t miss due dates and get charged a late fee.
Another easy move to make would be to update your profile when your income increases. You list your income when you first applied, but updating it when your income increases may signal to Chase that you can probably afford a higher credit limit.
To update your income, simply log into your account then go to Profile Settings. Click on ‘Personal Details’ then scroll down to where it says ‘Income’. Add your income, then click Save.
Option 3: Respond to a Credit Limit Increase Offer
This option is rare, but still worth mentioning so you can be on the lookout. Sometimes, Chase will offer a credit limit increase for a limited time. This is something that you can choose to do, or ignore.
However, keep in mind that when you make a request by phone it will result in a hard credit inquiry. If Chase offers it or gives you one automatically, the chances are better for it being a soft inquiry and not affecting your credit.
Option 4: Apply For a New Chase Credit Card
There are a few reasons why you may want to go with this option. To start, if you’re looking for a new credit card and a limit increase, you can achieve both at the same time. Chase may approve you for a higher limit with the new card.
Another reason is that you can combine credit limits from two different Chase credit cards to give yourself an increase. Cardholders can request to do this over the phone.
The only catch is that you can’t carry a balance on the card that you are moving the limit away from. You should also note that Chase has a 5/24 rule which means you can’t apply for more than 5 Chase cards in a 24-month period.
What if my request is denied?
If your request is denied, the representative should explain why. You will also receive a letter within 7 to 10 business days detailing the reasons why.
Odds are, it may be due to factors like:
- Your credit rating
- Not paying your bill on-time
- Not using your card regularly
- Not having your card active long enough (Chase has confirmed that they prefer you be a cardholder for at least 6 months before applying for a credit limit increase.)
The good news is that Chase doesn’t limit how many times you can apply for a credit line increase. If you get denied, take your time fixing any issues with your account and work on your credit score, then try again.