How to Increase Your Credit Limit


There are many strategic tactics you can take advantage of to build your credit score. Some, like paying your bills on time each month, can take time to register. However, others are relatively quick fixes that can easily give your credit the boost you’re looking for.

woman with credit card

Asking for a credit limit increase is one of those simple tips. It takes just a few minutes on the phone and could very well raise your credit score within the next 30 days.

This is a brilliant move if you’re trying to improve your credit to qualify for a loan or get better interest rates. But like any strategy, you need to put a little thought behind how you do it.

Here’s the lowdown on when it’s a good idea to request a credit line increase and how to prepare yourself for the conversation with your credit card company for the best chance of success.

Benefits of a Credit Limit Increase

A credit limit increase can have several benefits, including:

  1. Increased purchasing power: A higher credit limit allows you to make larger purchases on your credit card, which can be useful in an emergency or if you need to make a large purchase but don’t have the cash on hand.
  2. Improved credit utilization ratio: Your credit utilization ratio is the amount of credit you are using compared to the total credit available to you. A lower credit utilization ratio is generally considered to be more favorable by lenders and can help improve your credit score. If your credit limit is increased, your credit utilization ratio will automatically decrease, which can help improve your credit score.
  3. More flexibility: Having a higher credit limit can give you more flexibility in managing your finances. For example, if you have a large unexpected expense, you may be able to charge it to your credit card instead of having to come up with the cash immediately.
  4. Opportunity to build credit: If you use your credit responsibly, a credit limit increase can be an opportunity to demonstrate to lenders that you are a responsible borrower and help improve your credit score.

It’s important to note that a credit limit increase can also have drawbacks, such as the potential to increase your overall debt and the risk of overspending. It’s essential to use credit responsibly and only charge what you can afford to pay off in full each month to avoid incurring additional debt.

Which Card to Choose

It’s time to figure out which credit card you should choose to request a credit limit increase on (assuming you have more than one). Start by picking a credit card you’ve had for a long time, which has a low or zero balance.

You’ll want to demonstrate to the credit card company that you’re a responsible borrower, so make sure you’ve been consistently making at least the minimum payment on your account each month.

How to Ask for a Higher Credit Limit

Once you’ve selected your card, it’s time to call customer service. (With some credit card companies, you can also request a credit limit increase online.)

If you’re nervous, jot down some talking points before you pick up the phone. Mention to customer service that you’ve been a loyal customer for several years (be specific on how long) and note that you always make your payments on time and carry a low balance.

They might ask you why you want a credit limit increase. You can be honest. You’re simply working on building your credit and would like to lower your credit utilization ratio.

Furthermore, you might get a few more questions about your current financial situation. Be prepared to elaborate on your employer, how long you’ve worked there, and your annual income.

Be polite and patient with them and chances are, you’ll get that extension you’re looking for. It’s quite simple and when it comes down to it, most people are just afraid to ask.

When to Request a Credit Limit Increase

Even when you prepare for the call ahead of time, there are circumstances in which your odds of success can be greatly improved. If you’re thinking about asking for a higher credit limit, you’ll want to consider it even more if one of these situations has come up or if you’re expecting one to happen soon.

#1: A Recent Credit Boost

Maybe you’ve been monitoring your credit scores and have noticed they’ve gone up. Or perhaps you had some disputes successfully resolved. Either way, a credit line increase will be much easier with strong credit.

Card issuers assume that if your credit score is good, you’re better able to stay on top of your payments. Of course, we know that the secret to financial security is never charging more than you can afford. Be sure not to overspend if you do get that credit line increase.

#2: Strong Credit History

Credit card issuers certainly look at your holistic credit history, but they’re especially concerned with how well you’ve handled your payments with their specific card. First, make sure you’ve been a customer with them for at least six months.

Any account younger than that hasn’t had enough time to establish a trusted pattern of on-time payments. Next, look at how you’ve been spending on that card. If you’ve kept the balance low and made your payments consistently, you’re in a good place to request a credit limit increase.

#3: Recent Pay Raise

Did you recently get a pay raise or promotion at work? If so, you can leverage that extra income to qualify for a larger credit limit.

Depending on your credit card issuer, you may need to wait until you’ve received an updated pay stub or other documentation showing the raise. Again, always be sure to use your credit cards responsibly and don’t overspend. Think about where you can boost your savings as well.

When to Avoid Requesting a Credit Limit Increase

Card issuers also view a few scenarios as potential red flags, making it unwise to ask for a credit limit increase in these situations. One is if you’ve recently lost income or taken on a lower-paying job for some reason. A smaller income could denote a higher debt-to-income ratio or lead a card issuer to believe you’re less financially secure. Either way, you likely won’t get your credit line increase approved.

The same holds true if your credit score has dropped. This could be because of late payments, multiple recent requests for new lines of credit, or even identity theft. The best course of action is to make sure that you’re aware of what’s causing the decrease. Do your best to rectify the situation before applying for a credit extension.

Furthermore, remember that a request to increase your credit limit may trigger a hard inquiry. If you’ve had too many inquiries in the past 24-48 months, it might not be a good time to submit a request. If this is a concern, be sure to ask the credit card issuer if it will cost you a hard inquiry or not.

Use the New Credit Limit Responsibly

Credit limit increases are best for people who already use their credit cards responsibly. Having access to more credit does not equal permission to spend it, even if you can afford the monthly payments.

Remember that you’ll be paying interest on everything you buy when using your credit card if you don’t pay off your balance in full each month.

Plus, your credit utilization ratio will skyrocket, quickly hurting your credit. That defeats the whole purpose of getting the credit extension in the first place. It only takes one quick mistake to cause your credit score to plummet, but it takes a lot of time and effort to restore it.

Credit Card Rewards

That being said, as long as you’re financially responsible and regularly pay off your balance each month, you might consider using your credit cards for everyday purchases such as groceries and gas. You’ll benefit from increased rewards points that might actually save you money in the future, whether through cash cards or discounts on vacations.

Using your revolving credit is generally deemed to be more beneficial for your credit than not using it at all. It’s a complicated algorithm that might not be exactly the same for everyone. However, you can always count on the bottom line: don’t charge more than you can afford, and pay your balance in full each month.

What to Do If Your Credit Limit Increase Request Is Denied

In an ideal situation, you’ve prepared your talking points and the customer service representative is happy to raise your credit limit. However, it’s not the end of the world if your credit limit increase request is denied.

Perhaps your current balance was too high, or your monthly income wasn’t quite enough to support the increase in credit. The good news is, once you find out, you can take steps to remedy the situation. Take a few months to pay off some extra credit card debt, then try again.

Credit Card Reconsideration Lines

You may also want to consider the credit card issuer’s reconsideration line. This generally only works when you’re applying for a new credit card, but it’s worth a shot. They can possibly get your request approved or at least tell you why it was denied.

You may also want to consider requesting a raise from your boss. After all, now you have practice asking for what you want! If the credit card issuer mentions items on your credit report as an issue, be sure to get a copy and review things for yourself.

Improve Your Credit Scores

You should also access your credit reports to make sure everything on there is up-to-date and accurate. If you have several items that you think should be removed, consider hiring a credit repair firm. Here are some reviews of our top picks.

They know the legal ins and outs of dealing with credit card companies to make sure that all outdated and incorrect information is fully discharged—all of which contributes to improving your credit.

Once you’ve got everything correct, try contacting your credit card company again to see if you qualify this time. As the saying goes, the squeaky wheel gets the oil.

Lauren Ward
Meet the author

Lauren is a personal finance writer who strives to equip readers with the knowledge to achieve their financial objectives. She has over a decade of experience and a Bachelor's degree in Japanese from Georgetown University.