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 of the drawbacks of having more spending power with your Chase credit card.
Why You May Want a Chase Credit Limit Increase
Before you make your request, it’s important to know why you want to increase your credit limit. Credit limit increases 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 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.
A credit line increase 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. It can also be used to give you more wiggle room when trying to maintain a utilization below 30%.
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 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 credit card.
To increase your chances of getting an automatic credit limit increase, 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 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 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 credit limit request by phone it will result in a hard credit inquiry. 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?
Do you want to increase your credit limit with Chase but wonder why you can’t get one? If your request is denied, the customer service representative should explain why. You will also receive a letter within 7 to 10 business days detailing the reasons why.
Many reasons may be behind your inability to get one. Chase can refuse to increase your credit limit if you have a bad credit history, poor credit utilization, 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 credit 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 applying for a credit limit increase.)
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 fixing 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 deny an increase in your credit limit when your credit history is bad. 20% of consumers have been more than 30 days past due in the last 12 months, according to a study by Bad Credit. FICO scoring factors indicate that late payments contribute 35% to your credit score, which is why you want to avoid them.
Poor Credit Utilization
You will be better positioned to increase your credit limit if you have an excellent record of credit utilization. Credit utilization measures how much credit you’re using compared to your available credit. A 30% or lower utilization is recommended for a credit limit increase, so it’s unlikely you will be approved if you are above that amount.
Chase rarely approves credit limit increases for new customers. Typically, you need to have been an active customer for at least six months or longer to be eligible for an increase. If you don’t meet this threshold, don’t fret because you can still get approved if you follow some of these 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. Chase agents are likely to hear you out when 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 utilization on the card you’ve asked for an increase on. Doing so provides you with more spending power and may also come with better rewards or a higher cashback offering.
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 an 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. A reasonable credit limit increase request should be between 10% and 25%.
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 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.