How to increase your credit limit

Summary

• A credit limit increase could give you more financial flexibility to cover large purchases or emergencies. 
• Your credit score, payment history, and income may determine your eligibility for an increase. 
• You can increase your credit limit by reaching out to the card provider, waiting for an automatic increase, or applying for a new credit card to add to your available credit. 

Your credit limit is the maximum amount you can spend on your credit card. Your card issuer will determine your limit based on factors like your credit history, income, and other requirements. 

While credit cards can be incredibly useful tools for making purchases, their use is limited if you don't have enough credit to support your needs. When you're faced with high emergency expenses or you want to make a big-ticket purchase, having a higher credit limit can make all the difference. There are a few ways you can go about increasing your credit limit. 

Here's how to request a credit limit increase and what to keep in mind if you’ve been making on-time payments and managing your credit card wisely.

 

How does a credit limit increase work?

You can typically request a credit limit increase after 3 months of opening your account, and it can only be requested every 6 months, but this time may vary depending on your credit card issuer.¹ Remember to maintain a good payment history and avoid requesting increases too frequently. 

Factors that could determine a credit limit increase

Your credit limit may be determined in part by your creditworthiness, which is reflected in your credit score. Other factors creditors might consider include: 

•  Payment history: A record of how consistently you’ve made payments, on time or late 
•  Amounts owed: Your total debt compared to your available credit 
•  Length of credit history: How long your credit accounts have been active 
• New credit and credit mix: Your recent credit inquiries and the types of credit you have (mortgage, personal loans, credit cards). 
• Income: How much you earn, which helps determine if you can afford more credit 

Estimated Approval timeframe 

The approval timeframe for a credit limit increase can vary. In general, you may receive a response within 10-14 days. If approved, you should see your credit line increase online and in the mobile app under your credit card account. 

If your request to increase your credit limit is denied, the decline letter from the financial institution will outline the specific reason(s) why. 

 

Reasons to request a credit limit increase

People increase their credit limit for several different reasons. It all depends on your financial situation, credit history, and what you intend to use the extra credit for. 

1. Lower your credit utilization rate 

Your credit utilization is the percentage of available credit you’ve used on your credit cards and other lines of credit. For example, if you have a credit card with a $1,000 limit and your balance is $300, your credit utilization is 30%. If your credit utilization rate is high, increasing your credit limit could lower that rate. More credit means the ratio of debt to credit is farther apart, giving you a lower credit utilization ratio. 

Lower utilization rates are generally more favorable, as creditors view having more debt as a risk factor when lending or offering credit. So, ideally, you should have a credit utilization rate of less than 30%.²

2. Improve your credit score

Another reason someone might want a credit limit increase is to increase their credit score. Credit bureaus view your utilization ratio as one of the deciding factors when calculating your credit score.³ So, lowering your utilization rate with an increased credit limit may, in turn, boost your score. 

Having a good credit score could improve your buying power, such as access to better rates on loans and other forms of credit and a better chance of approval on a rental application. 

3. Use it for emergency funds 

Another benefit of a higher credit limit is having more financial flexibility in case of an emergency. Whether it's a last-minute plane ticket to help with a family emergency or a car repair that you can't put off any longer, having a higher credit limit gives you the option to pay for these expenses with your credit card, which can provide immediate relief as you work on a longer-term solution. 

4. Make a large purchase 

You could simply want a credit limit increase to cover a bigger purchase, like home furnishings or a plane ticket for your next vacation. You may not want to wait to save for the item and would rather purchase it now with your credit card. Increasing your credit limit could give you more wiggle room in your budget to do more of what you want. 

 

How to get a credit limit increase 

There is more than one way to get a credit limit increase, including contacting your card issuer, waiting for an issue offer, or applying for a new card. 

1. Contact your card provider 

Starting the process of increasing your credit limit can often be done online or via your mobile banking app. Otherwise, you can make this request over the phone or by mail. Choose the method that’s most convenient for you and follow the prompts. 

You may need to provide some personal and financial information, such as your income, employment status, assets, and other debts. Here are some examples of what you can expect to be asked for: 

• Your annual income/joint-owner’s annual income (if applicable) 
• Your monetary assets/joint owner’s monetary assets (if applicable) 
• Employment status 
• Monthly housing payment 

Keep in mind that your credit card issuer may take some time to review your request, especially if you’re requesting via mail. 

Wait for an automatic credit increase

You might not need to request a credit limit increase at all. Many card issuers regularly review accounts and automatically raise their limits for cardholders who demonstrate responsible credit use.⁴ Reasons for an issue offer can include: 

•  Making on-time payments 
•  Keeping your credit utilization low 
•  Reporting an increase in income 
•  Maintaining overall good credit health 

If you qualify, you could receive a surprise email or letter in the mail letting you know your credit limit has been increased. 

Apply for a new credit card

If requesting a credit limit increase on your current card isn’t an option right now, opening a new credit card could be another way to boost your overall credit limit. Adding another card increases your total available credit, which could lower your credit utilization rate and potentially improve your credit score— if managed responsibly.⁵

Having multiple credit cards can offer you some flexibility, but it’s important to be aware of possible challenges that may come with it. Keeping track of your balances across accounts could require extra attention, and it can be easy to spend a bit more than you initially planned. Plus, applying for a new card can also result in a hard credit pull, which can temporarily impact your credit score. 

If you’re not ready to open another card, it may be better to wait until the time is right to request an increase on your current card and focus on strategies to increase your chances of approval.

 

How to increase your chances of approval 

Make sure you know where you stand before you request an increase. 

1. Review your creditworthiness 

If your credit score has improved since you got your credit card, your chances of being approved for a higher limit may be better. On the other hand, if your credit score has dropped due to missed payments or other negative factors, your chances of approval may be lower. Taking steps to improve your credit score may strengthen your odds of approval in the future. If you’re a U.S. Bank customer, you can utilize the CreditView^TM Dashboard for free monthly credit score updates so you always know where your score is at. 

2. Analyze your income and expenses 

Your income and expenses also play a major role when determining how much of an increase you may qualify for. You should be confident that you can manage a higher credit limit responsibly.  

Ideally, you should be able to manage a low debt-to-income (DTI) ratio, which is your monthly debt payments divided by your monthly gross income,⁶ even after you get a credit limit increase. If you have other debts or liabilities, such as student loans or a mortgage, this could affect your chances of getting a higher credit limit. 

Have your documents ready 

You may be asked for additional documentation or information to support your request. Make sure you have everything prepared before you make your request so you can provide the necessary information quickly and easily. 

Be ready to explain your request for an increase 

After you request a credit limit increase, you may be asked why you’re requesting an increase. You can justify the request by listing how you’ve been responsible with your account, like no missed or late payments in the last year, for example. Be clear and accurate, and don’t hesitate to ask questions if you need clarity.

 

What to consider before requesting a credit limit increase 

Getting a credit limit increase could be a smart move if you do it wisely. Here are a couple of things to consider before you move forward. 

•  Increased spending: Make sure that increasing your limit won’t result in spending more than you can repay. Your credit score and financial health depend on it. 
• Credit impact: Requesting an increase may trigger a hard credit inquiry, which is how the card issuer reviews your credit report. A hard inquiry typically lowers your credit score by a few points and can stay on your credit report for 1 to 2 years.⁷ 

 

Make your credit limit work for you

Increasing your credit limit could give you more financial freedom but consider the decision carefully. Do some homework, review your financial needs or make a pros and cons list. 

If you practice healthy financial habits, asking for an increase could provide you with more financial security to cover unplanned expenses or more significant spending needs. 

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