A person sitting at a table typing on a keyboard

How Do I Increase My Credit Card Limit?

What Can I Do to Get A Higher Credit Limit?

If you’re cardholder looking to increase your credit card limit, there are a few steps you can take to improve your chances of getting a higher limit. Max Cash® gives you these stops to follow to potentially increase your limit:

1. Ask for a credit limit increase

You can call your credit card issuer and ask them to increase your credit limit. A long history with a credit card company and consistent demonstration of responsible card use increases the likelihood your request for a higher limit will be approved. You can also ask for a credit limit increase through the issuer’s online account management system. They will typically review your credit history, income, and spending habits before deciding whether to grant the increase. Even if you’re approved for a higher limit, it may not be as high as you would like. If you have good credit, it is easier to get approved for a higher credit limit.

2. Improve your credit score

Credit card companies typically look at your credit score when deciding whether to increase your limit. A higher credit score may make it more likely that your credit card issuer will increase your limit. You can improve your credit score by paying your bills on time, reducing your credit card balances and other debt, not applying for too much new credit, and avoiding opening too many new credit accounts at once. Requesting a credit report can help you stay on top of your credit rating and build a better credit history.

3. Demonstrate responsible credit card use

One of the most effective ways to increase your credit limit is to demonstrate that you can handle credit responsibly. This means paying your bills on time, keeping your credit utilization low (which means not using up too much of your available credit), and not applying for too many new credit cards or loans. If you consistently follow this advice and avoid maxing out your credit cards, you may be more likely to receive a higher credit limit. Credit card companies like to see that you are able to handle credit responsibly before they increase your limit.

4. Consider getting a credit card with a higher starting limit

If you’re unable to get a credit limit increase on your current credit card, you may want to consider applying for a new credit card with a higher starting limit. Keep in mind that this option may not be available to everyone. Credit card companies will still consider your credit score and credit history when deciding whether to approve you for a new credit card. Just be sure to shop around and compare offers to find the best deal.

You may not be successful in increasing your credit limit, especially if you have a low credit score or a history of missed payments. It’s also important to be mindful of the potential risks of having a higher credit limit. These include the temptation to spend more than you can afford to pay back.

Pros and Cons to Higher Credit Card Limit

Here are some pros and cons to consider when it comes to having a higher credit card limit.

Pros

  • A credit limit increase can give you more financial flexibility and may be useful in an emergency.
  • An increase to your credit limit can improve your credit utilization ratio (which is the amount of credit you’re using compared to the amount you have available). A lower credit utilization ratio is generally considered to be good for your credit score.
  • A credit limit increase can make it easier to make large purchases or book travel accommodations.

Cons

  • A higher credit limit can tempt you to spend more than you can afford to pay back. It’s important to be disciplined and stick to a budget to avoid falling into debt.
  • A credit limit increase may result in higher credit card fees and interest charges if you don’t pay your balance in full each month.
  • If you have a high credit limit but a low credit score, you may be seen as a higher risk by lenders, which could make it more difficult for you to get approved for loans or other forms of credit in the future.

Whether a higher credit limit is a good idea for you will depend on your financial situation and spending habits. It’s important to be mindful of the potential risks and to use credit responsibly.

If You Need Help Paying the Bills, Max Cash Can Help!

Max Cash can help you get the credit you need when you need it! We have partnered with four different card companies so you can find the card that is right for you. Some will not impact your credit score if you apply as well. Find the right credit card with the the right credit limit for you. So click here to find a new card today!

By Blake Halmerssen

Blake is a seasoned financial analyst. As the head financial writer for the Max Cash blog, he is committed to providing readers with financial literacy and advice.