Having a high credit limit can be advantageous in many aspects. A higher credit limit can help you cover a large emergency expense, pay for a big purchase, and even help to raise your credit score.
Many consumers fear to ask their credit card providers for a credit limit increase. This can be because you may feel like it shows the card provider that you are in need of cash or are in a financial situation you can’t get out of.
However, credit card companies recognize consumers need their limits increased from time to time. After all, they could potentially be making more money on interest if they give you a higher credit limit.
Card providers are more willing to provide consumers with a credit limit increase than you may think.
How to Get a Higher Limit
No matter what you may need the limit increase for, you are likely to be approved for a higher credit limit if you have a healthy credit score with no delinquent payments.
When you ask for a higher credit limit, the card company will treat it as if though you are applying for a whole new credit card. A hard inquiry will be performed on your credit to see if your credit score qualifies.
If you know you want a credit limit increase, only request an increase on one card. If you ask for an increase on multiple cards, your credit report and score will reflect a heavy number of hard inquiries, which can lower your score and your credit limit.
When you call your credit card company to ask for a limit, be sure to bring up the fact that you have been a cardholder with this company for X amount of years. Be sure to also tell the agent about your excellent repayment history. If you have a higher income now that before, tell the representative that as well.
If you have a less than perfect credit score, you can still ask for a higher limit. However, the credit limit increase you receive may be minimal due to your score.
If you have an emergency, like an important auto repair that is preventing you from driving to work, your credit card company can be more sympathetic than you may think.
All in all, asking for a credit limit increase is completely normal. No matter the reason why you need a credit limit increase, be sure to check your credit score and report for any errors that could hurt your credit limit increase.
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