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 current 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 drawbacks of having more spending power with your Chase credit card.
Why You May Want a Chase Credit Limit Increase
Before requesting an increase in credit limit, think about your reasons for doing so. Although a higher credit limit can give you more spending power, you should be conscious of how you use your credit cards.
A credit limit increase can have positively or negatively affect your credit score, depending on how you manage your credit card usage. Just remember that an increased credit limit doesn’t mean that you should max out your credit card.
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 that is something that can help improve your credit score.
Your credit utilization ratio is the amount of credit you’re using divided by the available credit you have.
For example, if you have a card with a $1,500 credit line and want to keep your utilization under 30%, your balance wouldn’t be higher than $450. If your total credit limit gets increased to $3,000, a balance of $900 would be equivalent to a 30% utilization.
How to Request a Chase Credit Line Increase
Option 1: Over the Phone
While some credit card issuers allow you to request an increase online, Chase doesn’t do this. In fact, they clearly state on their website that you must call Chase customer service.
Start by calling the number on the back of your Chase credit card and asking 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 Increases
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 Chase credit card.
To increase your chances of getting an automatic credit limit increase, remember to pay your bill on time and make more than the minimum monthly payments. 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 Chase 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 credit limit increases for a limited time. This is something that you can choose to do, or ignore.
Keep in mind that when you make a credit limit request by phone it will result in a hard credit inquiry, which will affect your credit score slightly. However, if Chase offers it or gives you one automatically, the chances are better that it will be a soft inquiry and not affect your credit history.
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 credit line 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.
Why is Chase not increasing my credit limit?
If your request is denied, the customer service representative should explain why. You will also receive a letter within 7 to 10 business days from the credit card issuer detailing the reasons why.
Many reasons may be behind your inability to get one. Chase may refuse to increase your credit limit if you have a bad credit history, high credit card balances, or if you’re a new customer.
It could also be because you’re not paying your bill on time, you’re not using your Chase card regularly, or your card hasn’t been active long enough. (Chase has confirmed that they prefer you be a cardholder for at least 6 months before you apply to increase your credit limit.)
The good news is that Chase doesn’t limit how many times you can request a credit line increase. If you get denied, take your time resolving any issues with your account and work on your credit score, then try again.
Below you will find some of the most common reasons Chase may not be inclined to give you more credit.
Bad Credit History
Chase will most likely not increase your credit limit if your credit history is bad. If you’ve had any late payments, charge-offs, or collections added to your credit report in the past 12 months, your request will probably be declined. It’s best to work on improving your payment history and credit scores before you request a credit limit increase.
High Credit Card Balances
You will be better positioned to request a credit limit increase if you keep your credit card balances low compared to your available credit limit. A 30% or lower credit utilization ratio is recommended for a credit limit increase, so it’s unlikely you will be approved if you are above that amount.
New customers at Chase typically don’t receive approval for credit limit increases. A customer usually needs to have been a customer for at least six months to qualify for a credit limit increase. However, if you do not meet this requirement, you can still try to get approved by following some helpful tips.
5 Tips to Help Raise Your Chances of a Chase Credit Line Increase
If Chase isn’t increasing your credit limit for one reason or another, there’s no point in giving up yet. Instead, read through the tips below to improve your chances of an increase.
1. Have a Convincing Reason
You have a better chance of getting your limit increased if you have a compelling reason. Anticipating a large purchase makes for an excellent reason to warrant an increase. A Chase representative is more likely to hear you out if you’re planning to use your card to do a home renovation or purchase a large appliance. There’s no guarantee they will agree, but being persuasive and friendly should better your odds of approval.
2. Transfer Available Credit from Another Card
If you have another Chase card, you can request them to transfer the available credit line from one card to another. This will lower your credit utilization on the Chase card you’ve asked for an increase on. Doing so may also come with better rewards or a higher cashback offering. If you are a frequent traveler, the Chase Ultimate Rewards program can be especially valuable.
3. Tempt Them with a Balance Transfer
If you have a balance on a different card, you can entice Chase by telling them you’d like to initiate a balance transfer. They may be able to offer you an increased credit limit to accommodate the balance transfer, as well as a promotional balance transfer fee or interest rate.
4. Be Reasonable When Asking for a Credit Limit Increase
You are most likely to be denied a Chase credit limit increase if you are unrealistic in your request. Asking for an increase from $10,000 to $30,000 isn’t a good idea if your credit scores aren’t strong enough to support it. Requesting a higher credit limit of between 10% and 25% is reasonable.
5. Pick the Right Time to Request a Credit Limit Increase
Knowing when you should or shouldn’t ask for a credit increase can play an essential part in getting approved or not. According to Chase, the best time to apply for a Chase credit limit increase is after getting a raise. Chase is also more likely to offer a credit line increase to a customer who makes on-time payments and has low credit utilization.
The worst time to ask for an increase is after you’ve experienced a reduction in income or job loss. You also shouldn’t ask for a credit limit increase shortly after submitting other credit applications, including loans or credit cards.
Frequently Asked Questions
How do I request a credit limit increase from Chase?
You can initiate a credit line increase request by logging into your account online, calling the Chase customer service number on the back of your credit card, or visiting a local Chase branch.
How long does it take to get a credit limit increase from Chase?
It will depend on the individual circumstances of your credit card account and the information you provide when making the request. You may receive approval immediately, or it may take up to 30 days.
Does Chase pull my credit when I request a credit limit increase?
Yes, when you request a higher credit limit, Chase will pull your credit report. This may lead to a temporary drop in your credit score as a result.
However, when Chase offers you a credit limit increase, they typically do a soft credit pull, which will not affect your credit score.
How often can I request a credit limit increase from Chase?
It’s best to wait at least 6 months between credit limit increase requests.
Does Chase automatically increase credit limits?
Chase may increase credit limits on eligible credit card accounts through periodic account reviews, which typically start six months after an account is opened. These automatic credit limit increases are at the discretion of Chase and there is no guarantee as to when one may occur.
Can Chase decrease my credit limit?
As long as it is permitted in the credit card agreement, a bank or credit card issuer can reduce your credit limit at any time without notification. This is often done due to a significant change in your credit score or other risky behavior, such as missed or late payments or opening multiple credit accounts recently.