The Easiest Way to Ask Your Bank for a Higher Credit Limit

Having a higher credit limit on your credit card can be beneficial for several reasons. This can help improve your credit score by lowering your credit utilization ratio. It also gives you more purchasing power and spending flexibility. But the automatic credit limit increase doesn’t happen automatically—you’ll have to ask your credit card issuer for it. Luckily, the process is quite simple. Many banks even allow you to make your request online, so you don’t have to wait in line with customer service.

How to increase your credit limit

If you want to increase your credit limit, check your credit report and score first. Before you ask for a raise, make sure there are no mistakes or negative factors hurting your credit score. Lenders will check your credit when considering your application, so the higher your score, the better. Also confirm that you pay on time. This responsible behavior makes you appear trustworthy.

Calculate your credit utilization ratio . This is the sum of all your balances divided by the sum of your cards’ credit limits. If your score is below 30%, you are in good shape. If you consistently exceed this limit, it is a sign that you could benefit from a higher limit. Please notify the issuer of this in your request.

Then decide what raise to ask for. There are no hard and fast rules, but 25-50% of your current limit is a good goal. Don’t overdo it and don’t ask to double or triple your limit, as this will most likely be denied.

Options for obtaining a higher credit limit

Call your card issuer. Explain why you deserve a raise and be prepared to provide financial details such as income, assets and expenses if asked.

Apply online. Don’t want to get stuck waiting for a customer service representative? I can’t blame you. It should be possible to submit a request through your card’s online portal. Just make sure your profile information (such as your income information) is up to date before you click “Submit.”

If your inquiries are unsuccessful, consider looking for a new card with a higher credit limit. A higher limit means more flexibility and can help increase your credit. Just don’t view this as permission to run up debt. Instead, use this higher limit to maintain your credit utilization ratio and continue making on-time payments .