How to Get a Credit Limit Increase

You have a few options for requesting a credit limit increase:

• Make a request online: Many credit card issuers allow you to quickly request increases online. Log into your account and submit your request.¹
• Request by phone: You can also call your card issuer using the customer service number on the back of your credit card. Ask the representative if you’re eligible for an increase to your credit limit.
• Wait for an automatic credit limit increase: Your issuer may automatically increase your credit limit if you’ve been responsible and have had your credit card open for a long time. You should receive an email or letter letting you know.
• Apply for a new credit card: If your credit score is strong enough, you might be able to get approved for a new credit card with a higher credit limit. This will still increase your total available credit, but it may lead to a hard inquiry on your credit report.

Increasing your credit limit can be a double-edged sword, depending on your spending habits. Here are some pros and cons of a higher limit.

Pros

• More financial flexibility: You’ll have more credit you can access for big purchases or emergency expenses.
• Lower credit utilization ratio: Your credit utilization ratio compares the amount of credit you’re using compared to what’s available to you. Lenders often prefer that you keep this ratio under 30%.² Increasing your limit will lower your credit utilization, as long as you don’t start spending more. A lower ratio is great for your credit score.

Cons

• Temptation to overspend: With more credit at your fingertips, you may be tempted to spend more. Credit card debt can be difficult to pay off, as credit cards often come with high interest rates. The average rate currently tops 21%, according to the Federal Reserve.³
• Hard credit inquiry can ding your credit score: Some lenders perform a hard inquiry on your credit report when you ask for an increase, which can temporarily dip your score. If you’re in the midst of applying for a car loan or mortgage, you want to avoid doing anything that will negatively impact your credit score.

When you ask for a higher limit, lenders look at a few key factors to decide if you’re a good candidate. While every issuer is different, they generally consider:

• Credit score: A higher score shows you’ve managed credit well in the past. Your score is based on several factors, including your payment history, length of credit history, and how much you owe.⁴
• Income: Credit card issuers want to see that you have enough money coming in to handle a higher limit.
• Payment history: A solid track record of on-time payments is a plus.
• Current debt: Lenders will look at how much debt you already have compared to your income to see if you can handle a higher credit line.
• Your history with them: How long you’ve had the card and how you’ve used it may also come into play.

While approval is never guaranteed, you can often improve your odds. Here are a few ways to boost your chances.

• Make payments on time consistently: This is the most important one. Try to pay your bills on time. If you have a history of late payments, your credit card issuer will be less likely to increase your credit limit.
• Pay down existing balances: Lowering your overall debt shows you’re not overextended financially and can handle more credit. Decreasing your credit utilization can also result in a credit score boost.
• Keep your income updated: If you got a raise, let your card issuer know. It can make a big difference when you request a credit limit increase.
• Use your card regularly: If you never use your card, the lender might not see a reason to give you a higher limit. Even just using it for small purchases will show you’re an active card user.
• Don’t ask too often: Asking too often for a higher limit could be a red flag to a creditor. Wait at least six months between credit limit requests.5

If your request for a credit limit increase gets denied, don’t get discouraged. It happens and can be a great learning opportunity. Here’s what you can do:

Read over the explanation: The lender is required to send you a letter or email explaining the specific reasons for the denial.⁶ Read over this letter carefully to find out what happened.
Understand common reasons: These include a credit score that’s too low, too many recent credit applications, or simply not enough history with that particular card. You can use the reason for the denial as feedback on what to do next.
Improve your specific problem areas: Focus on what you can improve, whether it’s paying down balances to lower your credit utilization or racking up a few more months of solid, on-time payments.
Make another request: Once you’ve made some progress over the course of six months or so, you can try asking again. Hopefully, you’ll get a different response this time around.

Increasing your credit limit can be a smart move for your financial health, offering more flexibility and potentially boosting your credit score. By practicing healthy credit habits, like making on-time payments and keeping your debt in check, you put yourself in a great position for approval.

For more information about how a credit limit increase might impact your credit, see our guide on requesting a credit limit increase.