Credit News and Advice

How to Increase Your Credit Card Credit Limit

So, you have managed one or more credit cards responsibly, have a good credit score, and think you deserve an increase to your credit card credit limit. How can you increase your credit limit? Usually, all you have to do is ask. Here’s how:

Call your credit card’s customer service number, usually identified by the 800 number on the back of your card. After verifying your account information, tell the representative that you would like to increase a credit limit increase. Depending on your credit card company, credit score, and account usage, they may do it immediately, or they may put you on hold and look into your account.

Your chances of getting a credit limit increase approved increase if:

• You have not made any late payments on any accounts in two years
• You have a good credit score overall (check your credit now)
• You have a balance on the card on which you want to increase the credit limit, but are not already “maxed out”

It may seem strange, but credit cards do not usually want to increase credit limits on customers’ cards if the customer does not use much, or any, of the credit limit they already have. So if you have a $2,000 credit limit and only charge about $300 to the card each month and pay the balance off in full, the credit card company probably isn’t interested in raising your limit to $3,000. Why not?

It’s because the credit card company doesn’t foresee making more money by raising your credit limit, but they do foresee additional risk. Since you generally only charge $300 on the card anyway and pay the balance in full, the credit card company doesn’t expect you to charge $2,500 and pay that off over time—earning the company interest fees. In fact, the card company may worry that if they grant your credit limit increase, you may charge $2,500 and then decide not to pay (even if you have great credit).

You may be able to increase the chances of getting a credit limit increase by telling the rep what you plan on using the additional credit for. (Perhaps you’re going on vacation, or will be transferring a balance).

Some Credit Cards Have Automatic Credit Limit Increases

Select credit card companies will increase your credit limit automatically after certain time periods of using your account responsibly. For example, Capital One credit cards have a program called Credit Steps. When a new customer gets a Capital One card and pays on time for three consecutive month, their credit limit is raised. The customer then gets another credit line increase after six months of timely payments.

Discover cards also feature regular credit limit increases after a year or more of responsible payments. Citi credit cards make it possible to request credit limit increases online when you are securely logged into your credit card online account manager.