There are a lot of reasons for a credit card issuer to increase your limit. Maybe you’ve been a customer for a long time and have always paid your bills on time, or maybe you applied for a new card in the same family and they want to reward you.
Whatever the reason, it’s certainly possible to ask your bank or credit union to increase your credit limit. But it won’t be automatic.
Ask for a credit limit increase.
In some cases, you can get your credit card limit increased. You can do this by calling the number on the back of your card and telling them that you need a higher limit because of a recent change in income or household expenses.
According to the experts at SoFi, “Sometimes, your card issuer will offer you a revised credit limit after you update your income information or build your credit. Alternatively, you may need to be more proactive by directly requesting an increase or transferring your available credit.”
If they say yes, they’ll typically send you an email confirmation within 24 hours, including instructions for adding the new credit limit to your account.
You should also make sure that there are no errors on your credit report before asking for an increase because it’s unlikely to be approved if there are any lingering issues from previous accounts or delinquent payments.
Offer to add another card to your account.
If you’re struggling to make your credit limit work for you, there are ways to get it extended. One way is to offer your bank another card. This can help them see that you’re responsible and would be a good candidate for more spending power. It also helps them increase their revenue stream by adding an additional account with its own separate balance.
They may ask why they should extend your credit limit if they already consider you trustworthy enough to have the original amount of money available on the card in the first place. The answer: Because they want more money coming into their business.
Request a separate credit line for business expenses.
If you’re starting a business and have no credit history, consider opening a business credit card. They’re more likely to approve you if they see that you’ve been trying to establish yourself as a legitimate business owner. This can help build your credit score while giving you some spending flexibility until your own personal card is approved.
Apply for a new credit card.
One of the easiest ways to expand your credit limit is by applying for a new credit card. If you have an excellent payment history, a good credit score, and a strong income. All things that are important in determining whether or not you get approved for a new card. You will have your application approved most of the time.
However, even if you do everything right and still aren’t able to get approved, it won’t hurt your chances down the road when applying for other cards. Credit applications are scored differently than actual accounts. They don’t stay on your report forever (typically six months). This means that if one particular bank denies you, there’s nothing stopping another lender from approving you later on down the line.
The most effective way to increase your available credit limit is by asking for an increase directly from your credit card company. If you have good credit and have been using the card responsibly, they won’t hesitate to grant your request. However, if you are applying for a new credit card, there are easier ways to do so with less hassle than applying for an increase on an existing one.