If you’ve owned a credit card for a while, chances are, you’d want to increase your spending limit — especially if your expenses have increased and you need a higher line of credit.
No matter what your reason behind the increase, there are specific ways to go about it that can help ensure your approval.
Call and ask, but not too soon
If you recently opened your card, don’t call the issuer right away. It’s best to way at least 6 to 12 months of using the card so when you do call, you can confidently provide a responsible track-record, which will assure the issuer you can pay the higher amount.
Pick a favorite
Although you may want to increase all of your card limits at once, you more than likely won’t get approved with that approach.
Some credit card issuers will run a credit check on you to check up on your financial history has been and when they do, it’s considered a “hard pull.” A “hard pull” can temporarily create a negative effect on your credit score, lowering it a few points so the fewer “hard pulls” you have, the better. If you’re simultaneously trying to get approved for a loan or any other type of credit, you’ll want your credit score to be a high as possible.
Don’t be greedy
When you inform your card issuer of the amount you want your limit to be increased, make sure it’s a reasonable request.
The higher you ask for your limit to be raised, the higher chance you have of getting your request denied.
Reasons for the request
When you call your credit card company and ask for an increase, chances are, they will ask for a reason behind the request. It’s imperative you provide your reason so you can maximize your chances of being approved.
If your card offers a specific reward program, you can explain to the issuer that you’re not spending more and would like to rack up rewards faster. Maybe you have a trip you’ve been wanting to take or something special you want to buy, and if you have a sound credit history, why not spend more to cash in your rewards sooner than later?
If you’ve recently had a promotion and your income has increased, this would be a great point to bring up to your issuer.
If your card company seems hesitant to increase your limit, you can always politely tell them that you have received promotional offers from other companies and are considering making a balance transfer, but you’d prefer to stay with them.
Things to keep in mind
It’s good to keep your spending habits below 30 percent of your credit limit. The highest credit scores are awarded to those who spend less than 10 percent of their limit.
According to myFICO.com, thirty-percent of your credit score is based on your utilization percentage — the amount of available credit divided by the amount of your combined credit card balances. The lower your credit untilization percentage is, the higher your credit score will be and vice versa.
Depending on your credit card issuer, sometimes you can request a credit limit increase on their website without even speaking to anyone, but that doesn’t apply for every card company.