The credit limit on your credit card is the maximum amount you can borrow from the credit card company every month. You may be wondering why you even should raise your credit line increase, or perhaps considering whether or not there are other benefits other than your current major reason in mind.
If you manage your credit well and have good habits then increasing your credit line has several advantages.
It can actually improve your credit score. When you pay with a credit card and you end up with a bill that is close to your credit limit it can be bad for your credit. However, if your bill is quite a bit less than the credit limit, you will see improvements in your credit.
Because you’ll have a better score you will have better chances of getting a lower interest rate or getting approved for a credit card or mortgage. Increasing your credit line can also make emergencies much more endurable in case a large sum of money is required.
Over time your bank is likely to raise your credit limit.
This is called an automatic increase. It is even more likely to happen when you have a low credit limit, and there is a less likely chance when your limit is already somewhat high. You could even ask for one as early as the first six months after opening a credit card in most cases. There are always things that you can do to get those credit limits to work to your advantage.
When you decide it is time to make a request for your credit limit to be raised you can either call by phone or apply online. Some companies will offer a new credit limit, but with other companies you may be the one to make the offer.
There is likely to be a temporary ding in your credit when you make this request, and the size of the pull depends on you as well as your card issuer. If your finances are in a good position you may receive the increase immediately. You may, on the other hand if your finances aren’t where they should be for the credit limit, either get denied, or, the company may offer you a counteroffer.
If you do decide to call you will have the best luck if you ask for the department that specifically handles credit limits, (they are known as credit risk departments) there is a lot better chance of talking to someone who knows what they’re doing. When you do talk to them make sure you include all of the reasons you should be given a credit limit raise. Try to see things from their perspective as best you can.
You can include anything that may work to your advantage; such as your credit or account history; occupation; income; and anything else related to your healthy financial habits.
If you do get denied, ask why. If they say the problem is with your credit then get your credit report pulled so that you can review it. This way, if anything is wrong, you can identify the cause and then take actions to make it right.