When Should I Ask for a Credit Limit Increase?

A credit limit, or the maximum amount of money you can spend on a credit card or line of credit, is an important factor of your credit card and overall financial health. The higher your credit limit, the greater your spending power and chances of having a good credit score—if you use it wisely.

There are several reasons why you may want a credit limit increase on your credit card. You may need to make a large purchase that will, at present, result in a balance higher than your credit limit. Maybe you want to increase your credit score by reducing your credit utilization ratio. Or, maybe you simply want additional spending power.

Whatever your reasons, knowing when to ask for a credit limit increase is important. Here are a few tips on when to request a credit limit increase, when to hold off on requesting one and what to do if your request is denied.

Vault’s Viewpoint on Credit Limits

• The best time to request a credit limit increase is if you’ve recently gotten a raise, your credit score is in a good place and you have a track record of full, on-time payments to your account.
• Don’t ask for a credit limit increase if your credit score isn’t in the best shape, you just opened the card, recently requested a credit limit increase elsewhere or have taken a lower-paying job.
• If your credit limit increase request is denied, you have a few options. First, identify the reason(s) for your denial, work to improve those factors and check your credit reports for errors. You could also apply for a new credit card within your credit score range or request to move available credit from one card to another with the same issuer.

When to Ask for a Credit Limit Increase

Your Credit Is in the Good to Excellent Range

If you already have a good credit score (FICO Scores of 670 and up and VantageScores of 661 and up), you’re a good candidate for a credit limit increase. A good credit score shows issuers you’ve developed healthy credit habits and will pay off your purchases.

You Have a Good Track Record of Making Full, On-Time Payments

Similar to having a good credit score, a solid track record of making credit card payments on time and in full shows issuers you’re financially responsible and primed to take on additional credit.

You’ve Recently Gotten a Raise

A higher income means more ability to pay off the things you charge to your card—from groceries to a new TV to car payments. If you recently had a pay increase, be sure to update your income within your card’s online account.

When Not to Ask for a Credit Limit Increase

Your Credit Score Isn’t the Best

Having a poor credit score (a FICO Score of 579 and lower and a VantageScore of 600 and lower) may limit your ability to secure a credit limit increase. It signals to issuers that you struggle with healthy credit habits—whether that be not paying bills on time, accumulating debt, using too much of your available credit or opening too many lines of credit in a short period of time.

You Have Credit Card Debt

If you have existing credit card debt, an issuer may be reluctant to offer you additional credit. Similar to a poor credit score, it can signal to issuers that you aren’t using credit responsibly or can’t afford to do so. The issuer is likely to view you as too much of a risk.

You Recently Applied for the Card You’re Requesting an Increase On

You aren’t likely to get approved for a credit limit increase if you’ve just opened a card. Too many requests for credit, in the form of new lines of credit or credit increase requests on other cards, can be a sign of financial distress and affect both your ability to get approved for additional credit and harm your score. It’s generally recommended to wait six months before you request a credit limit increase on a new card.

You’ve Recently Taken a Lower-Paying Job

In the eyes of a credit issuer, a lower-paying job compared to your previous income isn’t a plus. If your credit score and credit habits are in good shape, though, consider first calling your issuer to explain your income situation before officially requesting an increase.

How a Credit Limit Increase Request Affects Your Credit Score

A credit limit increase request typically triggers a hard pull on your credit report, which can temporarily hurt your credit score. Thankfully, any decrease in your credit score will be small, and its effect will go away within a few months. In general, credit pulls take two years to fall off your credit report.

However, some card issuers may grant a small credit increase without doing a hard pull on your credit report. You can call your card issuer and ask what options you have. Many credit card issuers now give customers the ability to request a new credit line increase online or in their mobile app.

Even though a hard pull on your credit report will have a temporary negative effect on your score, the increase in available credit could improve your credit score over time. More specifically, it can improve your credit utilization ratio, or the percentage of money you owe versus how much total available credit you have. Having a credit utilization ratio of less than 30% is best for a healthy credit score.

How to Get a Credit Limit Increase

Sometimes, credit card issuers automatically increase your credit limit, without you having to ask. An issuer may do this if you pay your statement on time and in full and use your credit responsibly. In this case, the issuer won’t conduct a hard pull.

If you have not automatically received a credit limit increase but want one, you can request one yourself from your credit card issuer. Generally, you can do so by calling your credit card issuer or submitting a request online. The request may be granted or denied instantly, or it may take up to several days for your card issuer to review it and make a decision. If you don’t receive an instant notification, you should be notified of the card issuer’s decision by email, a notification in your online account or a mailed letter.

Credit Limit Request Decisions

After you request a credit limit increase, your request will either be approved or denied. If it’s approved, note that it may take a few weeks for the increased credit limit to show up on your credit report. Some issuers provide day-of access to your increased line of credit.

What Happens if My Credit Limit Increase Request Is Denied?

If your credit limit increase request is denied, you should receive an explanation from the issuer as to why. Reasons may include a low credit score, a history of late payments or too many recent credit applications. Once you know the reasoning behind your denial, you can focus on improving your chances of a future credit limit increase.

For example, if your request was denied due to a low credit score, first work on improving it. Doing things like paying your credit card bill on time and in full every month and keeping your credit utilization ratio under 30% can help. You can also utilize credit-building tools like Experian Boost to improve your score based on rent payments, utilities and other common payments, like cellphone bills.

You may also want to review your credit reports for any errors. AnnualCreditReport.com offers free weekly copies of your credit report from each of the three major credit bureaus—Experian, Equifax and TransUnion. Look for any recently opened accounts or incorrect figures.

You have a few other options for accessing additional credit. If you’re struggling with the credit limit on one card in particular and have multiple cards with that issuer, you can request to move available credit from one card to another. Or, you could apply for a new credit card within your current credit score range, thereby increasing your overall available credit.