4 easy steps to get a higher credit card limit
In most cases, credit card issuers will increase your limit automatically. However, some won’t do that automatically. If your bank doesn’t increase your card limit, all you have to do is ask.
Like most people, you probably use your credit card for most of your purchases. And if you’re like most people, you also want a higher credit limit. So how can you go about getting it? It’s not as difficult as you might think. Just follow these four easy steps, and you’ll be on your way to boosting your credit limit in no time.
How to get a higher credit card limit?
1. Request online
One easy way to get a credit card limit increase is to simpler one. Many issuers allow their customers to make a request online, and you may even be able to do it over the phone. If you have a good history with the company and your account is in good standing, there’s a good chance you’ll be approved for an increase. Another option is to apply for a new credit card with a higher limit. This is especially helpful if you’re trying to transfer a balance from another card with a lower limit. You can also ask to be considered for a limit increase when you open a new account. Finally, some issuers offer automatic credit limit increases for their best customers. If you pay your bill on time and keep your balance low, you may be eligible for an automatic increase after six to twelve months.
2. Give your credit card issuer a call
You’ll need to call your card issuer and ask for a credit line increase. Be prepared to provide information about your income, employment, and credit history. If you have a good payment history and a low debt-to-income ratio, you’re likely to be approved for a credit line increase. Once approved, your new credit limit will be reflected on your following statement.
3. Search for automatic increases
Find out if your credit card company offers automatic increases. Some companies will automatically raise your limit after you’ve been a customer for a certain period or after you’ve made a certain number of on-time payments. If your company does offer this type of program, be sure to sign up for it.
4. Try applying for a new card
One way to get a credit limit increase is to apply for a new credit card. This will give you access to more credit, which can help if you need to make a large purchase or want to consolidate debt.
Advantages of Increasing Credit Limit
When you’re first starting out with credit, you usually have a pretty low credit limit. This can be helpful in some ways – it can prevent you from getting in over your head and incurring a lot of debt. However, once you’ve proven that you’re responsible with credit, you may want to consider asking for a credit limit increase.
Here are several benefits to having a higher credit limit.
1. A higher credit limit can give you some financial breathing room. If you have a low credit limit, it’s easy to get close to or max out your credit limit. This can hurt your credit score and make it difficult to manage your finances. But if you have a higher credit limit, you’ll have more leeway to use your credit card without harming your credit score.
2. A higher credit limit can help you avoid fees. Many credit cards charge over-limit fees if you exceed your credit limit. These fees can add up, and they’re avoidable if you have a higher credit card limit.
3. A higher credit limit can help you take advantage of rewards programs. If you have a rewards credit card, you may be able to earn more points or cashback if you have a higher credit limit. Many rewards programs base earnings on a percentage of what you spend. So, the more you’re able to spend, the more rewards you can earn.
4. A higher credit limit can give you peace of mind in an emergency. If you have a low credit limit
Think it through
Credit limits can be a tricky thing. On the one hand, having a higher credit limit can give you some financial flexibility in case of an emergency. And if you’re a responsible spender, you may never even come close to reaching your limit. On the other hand, a higher credit limit can tempt you to spend more than you can afford, and it may take longer to pay off your balance if you end up carrying a balance from month to month. So what’s the best course of action?
As with most things in life, it depends on your circumstances. If you have a history of using credit responsibly and think you could handle a higher limit without overspending, it might make sense to request a higher limit from your credit card issuer. But if you’re not sure you could resist the temptation of spending more just because you have the available credit, it’s probably best to stick with your current limit.