Most adults have credit cards because it’s much easier to get through life with one than without one. If you have a credit card, you’ll notice that it has a spending limit.
A time might come when you want higher limits on your credit cards than you currently have. Maybe you plan to buy some more expensive items, and the only way to do that with a credit card is to get a limit increase. We’ll talk about three ways you can increase your credit card limit in this article.
Before we get into how you can increase your credit card spending limit, though, we should mention that if you have several outstanding debts you can’t easily pay, it’s not the best time to take this action. You should prioritize paying off debt before you try to increase your credit limit.
1. Request a Higher Limit Online
Now, on to the first method that can increase your credit card limit. You can ask for a limit increase online. You’ll contact the credit card issuer by signing into your account and looking for an option to submit the request.
For the card issuer to say yes, you may have to update your income information. The credit card company will probably look at your payment history when determining whether to increase your limit, but they will also want to know how much money you currently make.
A higher income likely means more financial security, and the credit card company will recognize this. If your income is stagnant, the card issuer might turn you down. Still, it never hurts to ask.
2. Look For Automatic Increases
Most credit card companies will start you off with a specific credit limit when you sign up for an account. If you show you’re dependable by paying off your card every month, the company may extend your credit limit automatically after a year or two have passed.
If you want to know whether a card company will do this, you’ll probably need to go on their website and look over the fine print to see if they mention this policy somewhere.
If you don’t see automatic increases mentioned anywhere on their website or app, you might have to contact them directly to ask about it. Waiting for an automatic increase is the most passive way of getting a higher credit card limit.
3. Call Your Card Issuer
If you’d prefer not to wait for an automatic increase and don’t want to reach out through the company’s website, calling the card issuer is a third option. You can find a help number to call on the card issuer’s website or app.
Once you navigate the menu, you should be able to talk to a live operator. You can explain the situation and request a card limit increase. The representative you speak to might ask you why you want to increase your limit, so be ready for that. They might inquire about the state of your finances as well, such as whether your income has gone up recently.
The person you speak to might not grant you an increase at that moment, but they will probably get back to you via email soon afterward, letting you know the company’s decision.
Increasing Your Card Limit is Beneficial
You may need to increase your credit limit because you’re going to use your card for an expensive purchase. However, getting an increase can also improve your credit score. That’s because having more available credit but using less of it means your credit utilization amount is lower. That’s a critical factor in determining your FICO score.
If you’re ready for a credit card limit increase, try contacting the company by phone or using their website. If you want to try a more passive approach, you can also wait to see if the company automatically raises your limit.
With a higher credit card limit, you’ll have more buying power, and your credit rating should improve as well.