How Long Does it Take to Increase Credit Limit?

To raise your credit card limit, you can go online, call your credit card issuer or apply for a new credit card.

Asking your credit card company to raise the credit limit for your account can also raise your credit score if you manage the larger credit well. A higher credit limit can lower your credit utilization ratio below the recommended 30% threshold. Credit utilization is the amount you spend each month on your credit card compared to your credit limit. If your credit limit is $10,000, you should spend less than $3,000 on the card monthly. Here’s your guide to raising your credit limit and making the most of the change.

4 Ways to Request a Raise in Credit Limit

Learn how to request a credit limit increase to improve your buying power and perhaps your credit score by managing your credit utilization ratio.

1. Watch for Auto Increases

Sometimes, you don’t have to do anything to get a credit limit increase. Credit card companies may automatically increase your credit limit based on your income changes and spending behavior.

2. Place a Request Online or in the App

Many credit cards offer instant approvals for credit increases based on your financial data. However, depending on your credit and what you're requesting, you might have to wait for a manual review and approval. Sign in to your account online or in the app and look for a request button for a credit increase. Ensure your income information is up to date.

3. Call Your Credit Card Company

Look on the back of your card or click the contact button in the app to call your credit card company and request a higher credit limit. The customer service representative will likely ask a few questions to understand why you are requesting the increase and review your payment history to ensure you’re a reliable borrower.

4. Add a New Card to Your Wallet

As long as you can manage multiple cards and make on-time payments, adding another credit card to your wallet can be a wise choice for increasing your credit limit. This process requires a hard credit pull, so be ready to see your credit score dip for a few months following the new account. However, as long as you use the card wisely, it shouldn’t have long-term negative effects on your credit. The new card will increase your total credit available, which can lower your credit utilization ratio. 

How to Be Eligible for a Credit Limit Increase

Credit card companies evaluate several factors when determining eligibility for a credit limit increase. These factors might include:

• On-time payments: A history of late payments can reduce your chances of getting the increase you request.
• Paying your balance: Individuals who pay their balance in full are more likely to get credit limit increases.
• Good to excellent credit: The better your credit score, the more likely you’ll get the credit increases you request. Good credit can help you qualify for an increase.
• Current credit utilization ratio: Maxing out your credit cards each month can make you appear as a less worthy borrower.
• Duration of accounts: The longer your credit card is open, the more data the credit card company has about you as a borrower, making it easier for them to increase your credit limit. Many companies don’t allow credit increases until you’ve had the account for six months or one year.

Benefits of a Higher Credit Limit

Requesting a higher credit limit can be beneficial for responsible cardholders. Here are some reasons to consider this credit move:

• Lower credit utilization ratio: The lower your credit utilization ratio, the more you show lenders that you know how to live within your means. Your credit score will show impacts if your credit utilization ratio reaches 30%. 
• Greater buying power: Increasing your credit limit can help improve your buying power. You can use your credit card to pay for large expenses, including the down payment on a car. That way, you earn credit card rewards and get added insurance and buying protection depending on the credit card.
• Emergency safety net: Knowing you have plenty of credit to cover you in an emergency can provide peace of mind. While you want to avoid financing everyday purchases using a credit card because of the high interest rates, knowing you could finance a purchase using those funds is helpful, especially as you build your emergency savings.

Drawbacks of a Higher Credit Limit

Before you increase your credit limit, consider these drawbacks to make the best financial decision:

• Short-term credit score impacts: The hard credit check will negatively impact your credit score for a few months. Ensure you don’t need to finance large purchases shortly before requesting a higher credit limit.
• Changes to your credit mix: While your credit mix has a lower impact on your credit score than your credit utilization ratio, it’s still a factor. Lenders want to see diverse credit types, such as mortgages, auto loans and other credit tools. Too many credit cards and insufficient other lines of credit could harm your credit score.
• Limits on borrowing power: Lenders consider your total lines of credit when determining how much of a loan you’re eligible for. If you have high credit limits across various cards in relation to your income, you might appear to be a less attractive borrower. 

When to Request a Raise in Credit Limit

You might be wondering how often you should request a credit limit increase or what some signs are that it’s time for an increase. Here are some common scenarios:

• Income increase: As your income increases, so does your buying power. You might need a larger credit limit to accommodate this.
• Spending increase: Despite having the income to cover larger spending, you might have been able to keep your spending low and your monthly savings high. But as you add to your family or your lifestyle changes, your spending might increase, requiring a credit increase alongside it.
• High credit utilization ratio: Your credit utilization ratio can be high despite paying off your full monthly balance simply because you don’t have an adequate credit limit.
• Combined accounts: When you combine financial accounts with someone else, you might have greater combined income and buying power. Once you add another person to your credit card, this is a good time to consolidate accounts and request higher credit limits.

Tips for Requesting a Credit Limit Increase

Following these tips can improve your chances of getting the credit limit increase you’re requesting:

• Have documents ready: Your credit card issuer will want to know a few financial details before approving your request. These details include information on other loans, your annual income, employment status and the credit limit you’d like to have.
• Explain your need: Be prepared to explain why you need the credit limit increase. This can help the credit card issuer understand the request and get it approved quickly.
• Choose good timing: Avoid requesting credit limit increases in close succession. Put at least a year between requests. It’s also wise to time the request with increases in your annual income.

What to Do if Your Credit Limit Request is Denied

Many factors determine whether a credit card issuer will approve an increase to your credit line. Here’s what you can do if your request is denied:

• Wait: If you’ve received recent increases — automatic or requested — you might receive a denial now. Waiting can be the right action as the credit card issuer learns how reliable you are as a borrower.
• Increase your income: The higher your income, the more buying power you’ll have. As you increase your income, your credit card issuer will notice and provide increases to your line of credit.
• Improve your credit score: On-time payments and a lower credit utilization ratio are the best ways to raise your credit score. The higher your credit score, the better your buying power will be. Spend time focusing on your credit score and then apply for a credit line increase once you see improvements.
• Apply for a new card: If your current credit card has reached its maximum limit, it might be time to add a new card to your lines of credit. 

Improving Buying Power and Credit Score

Increasing your credit card limit can benefit you financially if you manage your funds responsibly. A larger credit limit can help you earn more credit card cash back because you can use your card for large purchases. A lower credit utilization ratio translates to a better credit score, improving your ability to qualify for various loans.