The Best Times to Request a Credit Limit Increase

Some people obsess over their credit card limit, while others never think twice about it. If you’re interested in an increase, it’s imperative to take a high level overview of your situation to determine if now’s the time to take action.

There are many reasons to request a credit limit increase, such as if the current level is not suitable for your spending patterns. For example, if you have the need to charge $5,000 per month but your limit is $3,000, it won’t be long before you want to make a change.

Here are a few important points to remember:

  • Your credit card issuer is not likely to issue an increase shortly after opening your account
  • If you make on-time payments, your issuer is more likely to automatically increase your limit after a period of one to two years
  • Your issuer will automatically review your account for a potential increase (at least once a year)

Of course, if you don’t want to wait on your issuer, you have the opportunity to proactively request an increase. Here are three times when the odds are in your favor:

  • You have a strong payment history: If you have a long standing account with no late payments, your issuer is more likely to comply with your request. Also, if you’re in the habit of paying your bill in full, it shows that you have the financial capability to take on a higher limit.
  • Your credit score is on the rise: Have you been working hard to increase your credit score? If you credit history is strong and your score is on the rise, your issuer is more likely to take you seriously. Conversely, if your credit score is dipping – maybe because you’ve missed payments recently – it’s less likely you’ll receive an increase.
  • You’re earning more money: If your income has increased since you secured your credit card, share this information with your issuer. An income increase positively impacts your ability to spend more money, without missing payments. Note: your issuer may request proof of your new income, so make sure you have a paystub ready to share.

If you’re interested in requesting a credit limit increase, carefully consider when you take action.

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