How to Increase Your Credit Limit

Many people want to know how to increase your credit limit because it allows them to spend more on their credit card and have a more favorable credit score in the long run. Some people may wish to increase their credit limit because they have unexpectedly reached their credit limit with no warning, and suddenly find themselves in dire financial trouble. Whatever the reasons may be, many people want to increase their credit card’s credit limit. Ultimately, however, your credit limit cannot be increased with a quick and easy fix; increasing your credit limit requires you to convince your credit card provider that you are a responsible and trustworthy borrower.

First of all, they’ll check your credit history thoroughly. Having clean records and paying all your bills on time makes you seem like a responsible borrower, and greatly increases your chances of obtaining a higher credit limit. You should look to pay off any existing debts you may have, and should avoid gathering large amounts of new debt or penalty fees. Gathering new debts (or failing to pay off old ones) is not going to help your cause.

If your credit card is new, there is usually a 6-month probationary period before you are permitted any credit limit increases. With this in mind, use your card wisely, responsibly, and consistently within those first 6 months before asking for a higher credit limit. You need to seem risk-averse and trustworthy, especially during this introductory period. Sporadic, reckless, and random spending will make you appear untrustworthy, and will deter any credit providers from rewarding you with increased limits.

After building and maintaining a decent credit history and record, negotiate with your credit provider for a reasonable credit increase. Some providers may have online forms for this, whereas others may require you to call them. Be reasonable with your requests, and do your best to persuade them. Demonstrate your responsible history and perhaps highlight the reasons for your desired increase if it is appropriate. Beware that farfetched and unreasonable demands may flag you as a suspicious customer and could end up with you being put on a watchlist by your credit card company. No one wants to have their credit provider scrutinizing their every purchase.

After all is said and done, lenders will reward borrowers with increased credit limits once they have consistently displayed responsibility, wisdom, and risk-aversion. There is no one-stop-shop for guaranteeing a credit limit increase; it is at your credit lender’s discretion, and they are entitled to make an assessment of you.

It should be pointed out, however, that you should not increase your credit limit if you will not be able to pay off the balance you will owe at the end of each month under your increased limit. Increasing your credit limit and then being unable to pay your credit card bills will undo all your good work and will flag you as a risky customer. You may even lose your new limit privileges. Only increase your limits if you know you can afford the associated fees, interest, and bills. Otherwise, you will ruin your credit history and cause yourself future problems.