My first credit card had a $200 limit! I would max out the card pretty easily, but at the time I didn’t know that was HURTING my credit score. So in this post, we’ll answer the question: How do I increase my credit limit?
Increasing your credit limit can be done just by asking your bank. If that’s not automatically approved, they’ll need to run a report on your credit which will negatively impact your credit score. Credit limits are based on your credit history, credit utilization, on-time payment history and income. Let’s take a look at each piece of the puzzle.
If you want to get approved for a high credit limit, make sure to check out your credit report first. Check our Credit Resources page for more information. The fastest way to get approved for a big credit line is to improve your credit score by purchasing a credit boost package. Each package has a different level of credit history and available credit. When Sly Credit adds you as an authorized user to one of these packages, your credit report will show that you have an account open with a large credit line and a long credit history. That means you will be approved for loans at lower interest rates and approved for credit cards with higher credit limits.
You can get your credit report for free with Credit Karma. Your credit score is comprised determined by the 3 main credit bureaus; Experian, Equifax and Transunion.
What’s the easiest way of increasing my credit card limit?
Asking. Just ask your bank if you are pre-approved for a credit limit increase. Some banks allow you to check if you are pre-approved for a credit limit increase on their website. I want to emphasize “pre-approved”, because if you are not pre-approved, the bank may have to run a credit check which will temporary bring your credit score down.
The next easiest way to increase your credit limit is to apply for another credit card with a different bank. The bank will run a credit report, but if your accounts are in good standing (no collections, good on-time payment) your likely to be approved. Some premium credit cards require a credit score of 700 or more, so if your credit is bad, aim low.
Opening another credit card with a different bank helps your credit score in the long run. It’s basically saying, more banks trust you and have given you a credit line. The chances of getting approved with a higher credit limit than what you have on your existing credits cards is pretty high.
How much does income effect your credit limit?
Your income does play a role in how much available credit you get when applying for a credit card, but it’s a small factor when calculated with other factors like your credit score, credit history, available credit and payment history.
People with higher incomes do get higher credit limits. Just so you know, most of the time banks don’t check your income if you put a “reasonable” income level. Now, is lying on the application illegal? No, it is not. With that said, put whatever you think sounds about right for your income…even if you add your potential future income.
How much credit limit can I get?
Your credit limit depends on many factors that comprise your credit score. If you’re trying to increase your credit limit, it depends on the bank you are requesting the limit increase. Credit is credibility, a bank isn’t going to give you significantly increased credit limit without showing your credibility.
Instead of thinking your credit increase as a value like $1000, it’s more likely that the bank will give you a credit limit increase as a percentage of your current available credit. So if you have a $1000 credit line with a bank, the most that they would increase your limit would be $1000 (that’s 100%)
If you want a much higher credit limit, you should improve your credit score first. You can check your credit score for free with Credit Karma and there are more Credit Resources here. If you want to improve your credit score fast, you can do that in just 2 months by purchasing one of our credit boost packages. You get added as an authorized user (no access to the account) to a credit line with a large limit and a long history. When this shows up on your credit report, your credibility goes up so your credit score goes up too!
Does Credit Limit Increase Automatically?
Yes, sometimes! Your credit limit may increase automatically if a bank sees you are using a credit card frequently. This is more common with credit cards that have credit limits less than $10,000. There’s no way to really tell if you’ll automatically get a credit increase or not.
If you’re interested in increasing your credit limit, look through your bank’s account page and see if there’s an option to increase your credit. Just by you checking, sometimes your automatically approved for a credit limit increase. If you’re not automatically approved, you can apply for reconsideration, but this would negatively impact your credit score since they run a credit report.
Will increasing a credit limit hurt my credit score?
If your credit limit increase is automatic or pre-approved, then no, your credit score will remain the same. In the event that your credit limit increase requires further review, the bank will run a credit report which will negatively impact your credit score.
Your credit score is calculated by several factors, one of which are credit inquiries. The credit inquiries (any time someone runs a credit report) is 10% of your total credit score calculation. That just means, if you have a lot of credit inquiries on your account (from applying for loans, credit card applications/inquiries, credit checks), the most your score can go down is 10%. Luckily, the credit inquiries are time based and your score eventually recovers in about 3 months.
What is a normal starting credit limit?
If you are 18 years old and have little to no credit history, the normal starting credit limit will be LOW. I’ve heard stories about people getting approved for credit cards with a $50 limit…that was my brother. I was “lucky” to be approved with a $200 credit limit. It’s not much, but it is a start.
Low credit limits are very dangerous, because it’s easy to go beyond the credit utilization limits that impact your credit score. Your total credit usage over all your credit cards should never exceed 30% and your total for 1 credit card should never exceed 50% the credit limit.
With a $50 limit, than means if you carry a balance over $15 on the credit card, you’ll be exceeding your “good” credit utilization marker and your credit score will not improve. This is the thing I wish I understood when I was younger
How long does it take to increase a credit limit?
Getting an increased credit limit can be instantaneous. If you’ve had a credit card with a bank for at least a year, check on your bank’s website in your account settings if you can increase your credit limit. Otherwise, you can call you bank and check if you are pre-approved for a credit line increase. If your request requires further consideration, that means they will run a credit report. At that point, you might want to consider just applying for another credit card.
If you are denied your credit limit increase, some banks won’t allow you to make another credit limit increase request for 6 months.
How much can I go over my credit card limit?
Some banks allow you to go over your credit card limit by 5-10%. I HIGHLY recommend not doing this because your credit score will be hurt. If you have to do this and plan on paying the balance before your credit card statement hits, then that won’t hurt your credit score.
For big purchases over your available credit card limit, I suggest calling or chatting online with a representative from your bank. It’s pretty common for them to approve a 1-time purchase that exceeds your credit limit.
How often can you request a credit line increase?
You can request a credit line increase with your bank typically once every 6 months. There’s still no guarantee you will be approved for more credit, because the credit increase is based on your bank’s review of your credit report.
Getting more credit with a specific bank can be challenging, so you might be better off applying for a new credit card with a different bank. Your chances of getting approved for another credit card are much higher than getting approved for a credit line increase.