How To Increase Credit Limit

Posted by CreditCardGuru

Want to know how to get a credit limit increase on your credit card?

During the boom years of last decade (you know, when you could buy a $400,000 house using stated income) it was extremely easy to get credit limits of 10, 20, even 50 thousand dollars on an average income.

Of course times have changed since then so what’s the best way to do it today? Should you simply request a credit card limit increase – or did asking for it fail – and now it’s time to bring out the heavy artillery? Well, I will share with you two different strategies of how to increase your credit card’s limit – the first one is common, the second one isn’t. In fact, credit card companies probably don’t want you to know about strategy #2.

Strategy #1: Plead your case

First of all, the zombies in level one customer support may not be much help. They’re limited in their power when it comes to this. About the only thing they can do is click a “request credit limit increase” button and give you whatever number the computer spits back at them.

Bypass the first tier of support and specifically request to speak to the department that solely handles credit limits. They are known as credit risk departments but surely the issuer will have a more pleasant sounding name that doesn’t have the word “risk” in it.Once you have them on the line, think about it from their perspective: Why should they give you a higher credit limit? If you think it would be beneficial to discuss any of the following, then do it…

  • Income: Has your income on file been updated since you’ve had the card? If you have a higher income now make sure to tell them. But don’t fib – they might ask for tax returns as proof!
  • Occupation: Each occupation has a different risk rating assigned to it (or in other words, the chance you could be laid off from your job). So keep that in mind when discussing your occupation. I have read posts on the forum where people have accidentally screwed up by misclassifying their occupation – i.e. Saying “manufacturing” when what they actually do is information technology (IT) for a manufacturing company. When you just say “manufacturing” it sounds like you might be an assembly line worker, and hence have less job security.
  • Account History: How long have you been their customer? Play this aspect up and remind them how great of a customer you’ve been.
  • Credit History: If you have an amazing credit history, say it and give specifics – i.e. I’ve never made a single late payment in my life.
  • Current Debt: If you’re in an attractive situation and currently have little to no debt, make sure you tell them.
  • Balance Transfers: A lot of times they will make special exceptions for those who are going to be doing a balance transfer to the account.

And as the cardinal rule, banks like giving money to people that don’t need it. If you act desperate and say something like “I need this to pay my car repairs otherwise I won’t be able to get to work” you probably won’t get very far when you request your credit limit increase. To get a higher credit limit, you need to act like you want it but not like you need it.

How much should you ask for?

Don’t try asking the person on the other end of the phone how much you should ask for; all credit card companies prohibit their employees from giving guidance on choosing an amount for a credit card limit increase. You will be on your own with this one.

My advice is to shoot for the moon but not for the stars. This avoids shooting yourself in the foot. If you aim too low, you get less than what was possible. If you aim too high, for an outrageous amount, you might get your account flagged as suspicious and get branded as a credit seeker (meaning, an account review). But if you go for a credit limit increase that is high, but not high enough to raise concerns, then the worst that can happen is they might come back with a lower approved amount than what you originally requested.

Every situation is different so there are no absolutes in terms of percentages or dollars – certainly not any that bank risk managers would ever go on the record admitting. If you are unsure, pose the question on the forum to gauge the advice and experiences of other members.

Strategy #2: The Double-Take

Do you think two is better than one? Then the double-take might be right up your alley…

Have you already attempted to get a higher credit limit and was denied? Or maybe it was increased, but it wasn’t raised as much as you would like? Well, that’s where the double-take can save the day…

In a nutshell, what you do is apply for a second (new) credit card from the same bank and then after you are approved, you re-allocate some of that credit limit to your other card (the one you want to have a higher limit).

For example, let’s say your current credit card has a $14k limit. You can try applying for a second (different) card with them and then re-allocating your credit lines. Assuming you have great credit and no reason to be denied for a new card, the odds of approval are probably good. That’s why this is my preferred method.

I have used this strategy a number of times to increase my credit cards’ limits by tens of thousands of dollars. Here’s my most recent example of doing this during summer 2013:

Step 1: I applied for this killer British Airways card offer
Step 2: Since my credit limit on the new card was higher than I needed for it, I called up Chase to transfer $8,000 of the credit limit to my Chase Freedom which had a $12,600 limit.
Step 3: The end result? My Freedom now has a $19,600 credit limit. That’s over 50% higher than what it was before!

Do you have a Chase card? If so try getting another one that you don’t already have. Here are their best offers for 2014 (which I constantly update): Marriott Rewards, Slate, Sapphire Preferred, and Freedom.

Want a higher limit with American Express? Then read this article about strategies for AmEx.

Your thoughts?

Got tips on how to increase a credit card’s limit? Post them in the comments below!

78 comments... read them below or add your own

  1. Catherine April 3, 2014 at 5:29PM

    I currently have a credit card with my credit union I work for and it’s a credit builder CC and the limit will go up $100 every month after 3 months of good payment history. I am just about to get to my first $100 increase at the end of the month. I also just got a Capital One Quicksilver rewards card with a $300 limit. By the time the intial 5 month period for increases with capital one ends my credit union card will have a $900 limit. My question is when Capital One evaluates my credit again to see if i’m eligibly for an increase do you think with good payment history and only utilizing 30% of my limit will they likely match my same limit with my credit union card or not increase at all? I have beginngers credit 602 score. This is my first time ever given the chance at credit cards so i’m trying to improve my score and learn the balance of managing credit cards.

    Also, I have heard about the Capital One Credit Steps program which I am unsure if my card was put into the program, is there anyway I can find that out? When I received my card I read all of the disclosures and never saw anything mentioning that my card was put into the program. I just do not want to be stuck with such a low limit card when I know my credit union card will increase every month on its own.

    Any input would be great help! Thanks.

  2. Dude April 3, 2014 at 9:47AM

    I want to apply for a credit card for my 17 month old son to establish him credit early. He gets $500 month income that goes directly into his 529 plan. Is this a good idea?

    • willy April 3, 2014 at 6:43PM

      I’m am 18 years old my mother did the same for me and I believe it is a bad idea I currently make 2500 dollars a month and have a 500 dollar limit on my own credit card making that I still find it hard to keep up with keeping it paid off and got my mother into debt with my previous card I would use a credit card as more of a responsibility builder then a credit builder for earlier applicants I feel there’s better ways to build your credit as a youth

  3. dabecca March 6, 2014 at 11:56AM

    I have a low income but have 2 credit cards with decent limits. Both cards are offering higher limits, which I have not accepted. I would prefer a lower interest rate. If I apply for a new card or line of credit I have to submit my taxes etc which I don’t think would go over well. Should I ask one of my companies for a second card? Should I accept the higher limits? It seems like a bit of a time bomb.

    • Jen March 12, 2014 at 11:51PM

      Him danbeca higher limits actually help your credit score because it shows your debt to ratio is smaller

    • Jen March 12, 2014 at 11:55PM

      Just be smart and try to use less than 30% and try to pay most of your balance if not all every month if you pay off your balance it doesn’t matter what your interest is because you don’t pay it since it’s payed in full

  4. JoeC February 19, 2014 at 9:27PM

    Need advise on getting a higher credit limit on my credit cards. I recently ( 12/13 ) got approved for a Cap one with credit limit of $500 and Discover it card with a cl of $1600. Now, I want to ask for and increase on the discover because that’s the card that I’m constantly using to book my vacation. I know that it might be too soon but I really need it to be increase. I’m using $1000 out of the $1600 but also I’m paying it all off within days. I don’t wait for the statement to get home I pay it as soon as it shows up online that is ok to make the payments. I need advise on how and when to do this. Keep in mind that I am building my credit now and my fico is 662 as per discover. I seriously don’t know what to do. I’m afraid that I might get denied for this, even thou I was told by customer service that I am 100% in good standing with them and all is ok. Any advise??? Am kind off in a hurry to get an even higher CL with all my cards. PLEASE HELP!!!!

    • Jen March 12, 2014 at 11:45PM

      Apply for a citibank credit card they’re an international bank and as long as you have good established credit they can usually offer you a higher credit limit. They also have really good promo rates offering you % for the first year try them out . Thanx hope this helps

  5. Amy January 29, 2014 at 1:32PM

    If you open another credit card and then re-allocate the credit line how do you keep it from showing up on your credit report as another account opened? I already have 3 credit cards and 1 store credit card.

    • Jen March 12, 2014 at 11:48PM

      Hi Amy chances are that it’ll show up but the good news is the average person has seven credit cards so four is not bad, try to get an increase on one instead of adding another

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  8. Carmenj December 11, 2013 at 6:29PM

    Hi, im currently trying to build up my credit and 6 months ago i was approved for a capital one credit card with a $300 credit limit. After 5 months of consecutive no late payments i receive an $1000 increase. My credit report show me at 630 and i would like to know how can i get a credit increase and the best way to do it without getting a rejection. I apply for a American eagle card and was approve for $500 limit and a Victoria Secret with 350. Im interested in getting another major credit card but with at least a credit limit of 4-5000 credit limit. Can someone please give me advise on how to do this. I want to keep building my credit but also would like an increase. I pay my credit card bills 2 weeks before due date and all at once.

    • bbbbbbb January 11, 2014 at 8:46PM

      WTF!!! I have had a Capital One card with a $300 limit for over FIVE YEARS and they have never raised my limit. I had one 30-days-late flag in 2008 and one or two late payments besides that, but that’s it. My balance is often high but that’s also because the credit limit is so low. I always tried to make more than just the minimum payment if I couldn’t pay it all down. I finally got good at paying it down to zero on a regular basis a year ago. I’m mad they never just gave me one when I have been a customer for so long! I didn’t know that was a thing they did, I thought you had to ask.

      • bbbbbbb January 11, 2014 at 8:59PM

        Also it’s the only credit card I have, I have tried applying for different cards but got denied because my income was too low. ($11,000 yr part time) Sigh… I guess I’ll have to wait a year or so until I make a higher income. It’s just annoying, I like to do shopping online, and it’s safest with a credit card. What if I want to buy an item that costs more than $300? It’s too risky to buy a big item online with a debit card.

      • Erik February 27, 2014 at 9:14AM

        You have to go on your account and go to ‘Services’ tab, then ‘more’ then under the ‘Online Services’ area click ‘Request Increase’

  9. Will November 14, 2013 at 9:51AM

    The “double-take” worked well for me for years, but then some of my creditors, namely Chase, BofA and AmEx started factoring in three more components which caused me to stop getting increases even with an 820 FICO and no hard inquires. (1) Amount of total unsecured credit available across all credit cards on my CR (2) Amount of total credit I had with them across multiple cards, including business cards (3) Amount of “unneeded credit” (I.e. The portion of my credit limits that was beyond my utilization level). Several credit analysts mentioned this when I did a recon. They said that the bank doesn’t like to have more exposure than is necessary for a client’s spending level. Plus, they know there’s always some chance you could run ramp up your spending and quickly be in more debt than you could support. I wanted my limits high to keep my utilization at a low %. I didn’t say that, but that was one of my main reasons for requesting an increase. They didn’t think this was a valid reason for additional credit even though my finances supported it. So, if in that situation, have an answer ready for why you really need a lot more credit than you ever have used.That’s just something to be mindful of if you do find yourself talking to a lender and getting a manual review for an increase or new trade line. It seems many of them are on to that now.

  10. Henry September 25, 2013 at 11:48AM

    hahaha “little to know debt” ????

    wouldn’t we all love to have some little to know debt!!

  11. Robert September 16, 2013 at 7:22PM

    If I do the second method since I have a Discover IT card and I apply for another Discover Card with maybe a 3,000 limit and I can transfer it to my Discover IT card which only has a 1,000 limit, I can get a 4,000 limit if they don’t give me an increase?

    Also, I should shoot for the moon and not the stars. How do I know how much of a credit limit increase is the moon and which one is for stars so they don’t flag me?

    • Will November 14, 2013 at 10:15AM

      Please post if you have success in reallocating with Discover. I could never get them to move available credit between my Escape and It cards. I had to always request a line increase specific to each card.

  12. JoshK August 30, 2013 at 9:02PM

    So what would be the proper profession to say you have, I work in sales of a precision agriculture company, my title is account manager, but should I state manager or sales?

  13. Brianna June 16, 2013 at 6:28PM

    I applied for a credit card today got accepted! i tried getting a credit card for years and always got denied so I’m pretty excited my credit limit is only $300, but I’m not complaining. I’m just happy i got accepted i was trying to find ways to get a increase by earning it by never missing a payment. i only wanna use my credit card for emergencies.

    • Danny December 22, 2013 at 9:55PM

      Just some (very belated) congrats to you, Brianna! Use your card conservatively and the results will be very good for you.

  14. cdp June 9, 2013 at 7:10PM

    Initially denied credit limit increase because capital one does not do customer requests. Emailed CEO. Got a call and increase from executive office. Really does work! Very happy given 2 increases in my 10 mths withthem.

  15. Tercel June 5, 2013 at 11:52AM

    I have had credit issues in the past I had one chase card and one capital one card that both went into collections. This was 6 years ago I have paid off both cards and now my credit scores are in the 690-700 range. I do bank with Chase but I am always denied when I apply for a credit card with chase. Do you think since my old credit card with chase went into collections they will always automatically deny me? Also the chase collection account has already been taken off my credit report also. What do you think?

    • Texas August 21, 2013 at 11:22AM

      You are probably being denied because you’re requesting too many times. I would wait at least 12 months before you apply for any line of credit. If possible, you should go to the bank and talk to one fo their credit people and ask questions before you apply.

  16. RODNEY June 1, 2013 at 10:58AM

    hello, i am 23 years old, i am a sales manager at an insurance agency and make a decent income. i have two capital one cards with limits of 450 – 500 my limits have been the same for the last two years, not received one increase but i haven’t asked the companies nor talked to them, any ideas of how to go about getting a decent increase into the thousands range? i have about 700 credit
    any information will be appreciated

    -Thank you

    • Elie November 7, 2013 at 8:57AM

      Try applying for another card. You may get a higher limit, plus you’ll have more cards you’re balancing which looks good to the credit bureaus. The downside is you’ll make the average age of your accounts younger.

  17. jow May 14, 2013 at 9:44PM

    Hi Im 19 and make well over $500,000 a year (not a typo). I was just wondering if anyone knew if I could get my cl increased by getting on a forum and bragging about how much money I (supposedly) make to complete strangers. My FICO is well over 900 and I only use my CC to buy random ebay auction items at the buy it now price right before the auction expires. Also I hope this post translates to some sort of hit based compensation for the owner of this site. My current limit is 1,000,000 pesos on my Mexican-American Express Gold Plated with bonus border miles.

    • BS June 30, 2013 at 7:20PM

      No way no how this is possible. I don’t care if your an NFL football star making 4 million per year. There isn’t a 19 year old in this world with a 900 credit score, let alone well over 900. Considering 900 is the ceiling. Not only that but why would a 19 year old making 500,000 per year need credit?

      • Elie November 7, 2013 at 8:58AM

        Dude the guy is talking 900 peso credit score points… That could buy him a bag of potato chips on credit.

    • Ginger September 24, 2013 at 4:10PM

      You’re an idiot…but that was funny!! LOL

  18. David April 14, 2013 at 5:00AM

    I have a capital one with a $500 credit limit. I have had it for 2 years and keep a balance omit but pay it on time always. also have a chase freedom with 5k limit and do the same I’m my credit score is fair. I’m going to try option 2 and re apply for a new card from both what do you think my chances are and info will be appreciated, thanks.

  19. Keith February 26, 2013 at 6:06PM

    I tried the second technique today. I had read it last year and came across it today when I had some time. I began rebuilding my credit with a Citi prepaid card several years ago with a $200 credit limit. Even though I switched over to a Citi Dividend card that started at $800 and then to $1,800, they would not grant me a credit limit increase today on that card. I started the process today by thawing my credit at each bureau. I called Chase and increased from $6,000 to $15,000; called Discover and was increase from $10,500 to $16,500; called American Express and was approved for a new BOE for $7,000 and finally decided to call Citi to see if I could open another card with a higher limit so that I could just forget about the low limit Citi card and leave in the back of my drawer. I was approved for a Citi Diamond Preferred Card with a $10,000 limit. I’m still shocked that Citi would give me another card with that high of a limit instead of just increasing the limit of the Citi Card I already have. Oh well, Thanks for your post. It works.

  20. Jenna February 19, 2013 at 10:20AM

    I am trying to rebuild my credit after divorcing. My past credit is not ideal, but my recent credit history is nothing but good. I have a stable job, Accounting field. I heard I could improve my credit score by increasing the limit on my existing credit card. Is this true?

    • Monica April 28, 2013 at 12:29PM

      Yes, It’s true. Higher limit, better score.

    • Elie November 7, 2013 at 9:00AM

      higher limit is good as long as you don’t increase the percentage of your limit you use. that’s called credit utilization %. if you keep your spending the same, the amount of credit you use will be a lower percentage. that’s good for credit score.

  21. Dodi February 7, 2013 at 8:05AM

    I would like to increase my credit limit on my cc. I recently made a large purchase on a card with a 7k limit. My plan is to pay it right off, within 15 days, hoping to show the cc company that I am worthy of an increase and able to pay it right off. I had the cash to make this purchase, however, thought this was a good opportunity to boost my credit. Did I make a good decision? I have excellent credit, over 800.

  22. Mr A January 29, 2013 at 10:18PM

    What is the procedure for re-allocating credit from one card to the other? I’m having trouble understanding how to do this.

  23. quagmire December 18, 2012 at 5:41PM

    I’ve tried both methods and they do indeed work.
    thanks for the article

  24. JoDa December 3, 2012 at 8:30PM

    Ugh, I feel like I am terrible at asking for credit line increases. I have had most of my credit cards since I was in college (obviously approved for relatively low limits) and one that I opened a few years ago after I got my first “real” job. Since the time of that last card/first job, I have received some moderate line increases without asking, and more than doubled my salary to a quite healthy level. After having a discussion with some friends about finances, and learning that friends of mine in the same situation (good income, good credit, low debt) had limits nearly 20x mine on a single card (where I would have a limit of $2K, they’d have a limit of $30K, for example), I decided to try out asking for an increase. Well, when asked what limit I wanted, the best I could muster was $5K, which, for the card in question, from a major issuer, was nearly 3x my previous limit. Of course I was instantly approved, not only do I have good credit and a good income, but I have been a customer for several years with NEVER a late payment and rarely even carrying a balance. But I just don’t know how much to ask for. I have 4 cards, with total lines of about $10K, and make just over $100K/year gross. I am somewhat young, but have owned my own home for a handful of years and even have an investment property that turns a healthy profit (~$4K/year net everything, over $15K gross). I’m about 22% debt-to-gross-income, mortgages and student loans (no other debt except the random $50 or so that actually appears on a CC statement before I pay it off). Thoughts?

  25. Michael November 30, 2012 at 11:08AM

    I’d like to ask for a credit limit increase on my Chase Amazon Visa. How much do you think I could successfully ask for?

    I currently have a $3,800 limit on it with a credit score of 736. I was thinking of asking for either $9,000 or $12,000 but I have no idea if this is shooting for the moon or for the starts. I’ve never had a late payment in my life, and use my card regularly every month. I’ve also had the card since 2007. My credit score was recently between 780 and 812 but lowered after purchasing a car back in July.

    Any advice would be infinitely appreciated!

    • Kayla January 16, 2013 at 9:41AM

      If you haven’t requested one already… I am in almost the same situation as you… I was able to get approved from $3800 to $5200.

      My credit card company bases increases on income… if you make x a year, your limit can only be x. But I can’t seem to find the numbers anywhere online.

  26. Jene November 27, 2012 at 3:24PM

    how long after having my first card should i ask for a credit increase and or apply for the other card?

  27. LWilso November 12, 2012 at 8:40PM

    I recently asked for a CL increase earlier this month from $500 to $1000 and it was approved within a few days. I want to have a CL for at least $3k-$5k. How long should I wait to ask for an increase? I always make payments on time!

  28. jdjudbf October 1, 2012 at 11:01AM

    OK, I don’t get what is meant by “transferring a credit limit”. I have a $4,500 card that is paid off in full, what do I do… apply for another card instead of trying to get the 4500 one increased?

    • slyaii August 9, 2013 at 3:27PM

      Credit Card from Your Current is $4500. Apply for a different card from Your Current Credit Card Company. Once approve for xxx amount. Have that xxx amount transfer to Your Current Card that ha $4500. Get it?

  29. TJH August 27, 2012 at 5:33AM

    I have an excellent credit score, over 740. I have a Chase Sapphire Preferred with a $5,000 limit. I also have an AMEX platinum that I put most of my charges on (avg $3,500 per month), but have had months around $7,000 and $14,000. As I prepare myself to get a home loan next year, what is a realistic, yet stretch number to ask to increase my credit limit to on the Chase card? Is 50K out of the question?

    • Gonzalo October 14, 2012 at 10:31AM

      Yes, 50k is too much. If you want to be approved, 3x is a safe bet, so in your position I would ask for 15k.

  30. Lisa August 25, 2012 at 11:20AM

    Hi There, I applied for a card with an introductory 0% APR, and only got approved for $1000, what a joke. My credit score is in the 800s and I make about 60k a year with little debt. If I try number 2, Do you think I will be able to transfer credit from another card with different terms? I want to get a higher credit limit on the 0% APR card.

    • jay November 11, 2012 at 5:06PM

      $1000 limit? If you think thats bad well imagine having my crappy credit limit which is $500. I request a credit limit increase once every billing cycle and always get rejected. I pay my bill in full every month and still no increase.

      • Financial Guru November 18, 2012 at 7:12PM

        Getting credit limit increases is very hard these days. I have 760 FICO scores and make well over $130,000 a year. The issue is creditors do not want to take a big risk on one person. It’s a risk strategy, giving one person $50,000 limit or 50 individuals $1,000 limit.

        This will reduce their exposure to risk. So this of you who have the 500 and 1000 limits, your card category (not your credit rating) is possibly at play. Capital one has cards that issue $500-$1500 limit cards and nothing more. So if you start at $500 and build up to $1500, you have capped that card out. You can request increases till you turn blue in the face. This is a fact as I have one of the first cards I got for $1,500 limit was never increased even though I asked twice a year, every year. I decided to just apply for a new card and immediately got approved for $7500.

        I can tell you that if you have cards that do not approve your increase (without cause) then just apply for a new card and let your new credit/income status dictate the card and the limit you receive.

        AMEX closed a 13 year old account that NEVER had a late payment on. A 10,000 credit limit shut down after the billing cycle. The only despise was “due to economic times we are selecting some accounts to close” they approved a new Platinum card three days later. Simply stupid.

    • Matt November 20, 2012 at 8:15AM

      I wouldn’t even worry about it Lisa. Cards can get you in trouble. I used to only have a $7500 limit on both of my cards and I would only put enough on that I could afford to pay off at the end of the month. My bank asked ME if I wanted to increase my limit on both cards, so I agreed. I was thinking, “Why not? If I ever need it, I’ll have it for emergencies.” So, my limit was increased to $30k and $20k. Long story short, I was very careful with cards, but “life happened” and I used them. Now, I’m stuggling to pay off $50,000 in credit cards with a $1000 min payment each month on a $46k salary. Had I not had the limit, I would have found more creative ways to pay for “life”. Now, at 7.9% and 8.9% I am paying about $350 in interest alone.

  31. Ali Siyal August 22, 2012 at 11:18PM

    I tried to increase my credit card limit but was declined and was suggested to apply for another card straight away. That I did but it was declined too. Now it’s been two months so what shall I do? Suggestions warmly welcomed thanks heaps

    • Jose Pereira January 8, 2013 at 9:31PM

      Close your accounts and change the bank.

  32. Jay August 14, 2012 at 9:37AM

    How long after getting your first card is this reccomended for? I’m 18 and I would like a card with a $2,000 limit once I get my first card and get myself established.

  33. Mark August 7, 2012 at 12:00AM

    Great second advise! I don’t have good credit and have a capital one card with a only $300 limit but after applying for another after reading this was approved for another card with a $500 limit. Just trying to build credit score up! Thanks for the help!

  34. steve July 16, 2012 at 1:48PM

    I currently have amex blue cash, and my cs is 785. my cl is 30k. I always pay everything in full each month. i have been thinking about raise my cl to like 50k – 60k, beside the tax form, what else amex may ask me since it is more than 30k. do you think by increase cl, i can reach 800 soon?

    • J Matthew September 22, 2012 at 4:50PM

      getting a credit score of 800 or more leans on more than just your credit ratio. Sure, having a huge limit and using very little of it can help. Most people recommend under 30%. However that is only a portion of what you need to get over 800. Credit length is important. But also having a variety of credit is important. Without a car loan and mortgage it is difficult to get over 800. At 785. One of the biggest credit mistakes people make is paying off there car, sure this saves you a little coin, but hurts your credit score which can cost you more in the long run.

  35. Griselda June 11, 2012 at 2:48PM

    if I do the second one will they have to run my credit again and will it affect my credit score?

    • helper August 31, 2012 at 1:31PM

      they will run your credit. each credit inquiry affects your score by about five points.

    • Kolby November 6, 2012 at 7:43AM

      Ask them if they will be doing a Hard or Soft Inquiry. Soft inquiries do not affect or even show up on your report. Hard inquiries do affect your report depending on how many show up but go away after a certain amount of months, 6-12 or so, I’m not sure.

  36. Lasardo May 8, 2012 at 12:57AM

    I am curious about transferring credit-lines, I am new to the credit game so forgive me if I am still a bit confused.

    I am currently rebuilding. I have 2 cards with capital one. I would like to have a higher credit line. When transferring a credit line, does it require a credit report to generate? How long should I wait before I ask for a credit limit increase?

    • J Matthew September 22, 2012 at 4:55PM

      Don’t be afraid to call your card company and ask questions. Some cards do what is referred to as a hard inquiry when you ask for a credit limit increase, but a lot do not. Always ask before you submit a request, too many hard inquiries will make you look credit hungry and hurt your score. If the card doesn’t do a hard inquiry then feel free to ask for an increase monthly, but if they do then just keep your usage low and they should increase it automatically bi-annually.

  37. Jackie May 6, 2012 at 7:24PM

    Hello, I am 26 years old and make 6 figures a year. I have made well over $75k since I was 24.

    When I was 18 I began to get store credit cards and was ill advised on how to properly manage my credit cards which led to collections. I was then offered a $250 credit limit with a bank and then got laid off (I was 19) and that led to collections as well but I immediately paid off that balance with them. Since then, I have cleaned it all up and have a better (still not great, but my report says better than 60% of the country) credit limit. Capital One gave me a $500 credit limit. I have never been late on a payment and pay every statement either half of the balance or in full.

    How can I go about continuing to raise my credit limit and overall credit score? Other credit cards continue to deny me and I am unsure why after 6 years of maintaining great credit, I continue to get denied and no credit increases. Can you help me with this?

    • Pia July 29, 2012 at 9:56AM

      Depending on what you claim your profession is (what actually shows up on your credit report) computers compare your income to the average in the field. Also, taken into consideration your assets that are reportable.

      If you are claiming a high income and have more than the average amount of credit cards, this will lower you score and represent a high debt to income ratio, depending on how many cards you have.

      Also, a person with a high income usually owns Real Estate. A Mortgage with good payment history will definately increase your credit score and your credit limit because there is an asset that the credit card companies can easily go after should you decide to default on your payments.

      If you have Credit Cards and no Car Note, that can also lower your score. Based upon how low and high your payments are, lenders (and computers) are able to tell how low and high your other interest rates are.

      FINALLY,

      You indicated that you keep applying for credit. INQUIRIES are the biggest thing that will lower your score. If you are using those online services that give you a variety of sources, there is a possiblity that ALL of the sources are pulling their own reports.

      Be very cautious regarding the inquires.

  38. Kevin Headley April 11, 2012 at 11:08AM

    Hello, I recently moved from the UK to Canada. I have a well paid job, have zero debt and I applied and received a Capital One mastercard with a $500 limit January 2012. I have used it regularly by buying and immediately paying off the full amount (rather than the minimum payments) I currently have $300 left on the card and I am thinking of requesting an increase in my limit. What are the best ways? Should I apply for another credit card like Kate has commented?

  39. Kate April 3, 2012 at 12:54PM

    I requested an increase on my Capital One card from $700 to $2000 because I wanted to purchase a camera online and wanted protection. I have amazing credit and income but this is the only credit card I have. I was denied so I spoke with a credit specialist and they recommended I apply for more credit cards, run them up to 20% and make minimum payments for 6 months then pay off the balance. I applied for 3 new credit cards in the same day; Chase Visa, American Express and Bank of America MasterCard. I was approved for all 3 cards; Visa 3k limit, American Express unstated limit, and MasterCard 3500 limit. A few weeks later Capital One sent me a letter that my credit limit had automatically been raised to $2,500. The correct management of these cards over the last 6 months has also increased my credit score by 42 points.

    Credit building turns out to be the exact opposite of what I expected, the more credit you get and use, the more lendable you will be and the more credit you are likely to get when you request an increase.

    • CreditCardGuru April 3, 2012 at 10:11PM

      Congrats! Something to keep in mind though is that carry a balance won’t help, because your balance is reported to the credit bureaus on a given day each month (usually the day your statement closes). So whether you pay those charges in full or over time doesn’t matter. What counts is that you are using the card regularly, so a balance will be reported each month (even though you pay the charges in full when they come due).

  40. Rita212 March 11, 2012 at 8:03PM

    I would like to try number 2, however I go not want this go show up as a hard inquiry. Do you think it will?

    • CreditCardGuru March 12, 2012 at 11:15AM

      Probably.

  41. Henry February 27, 2012 at 2:09PM

    I’m just wondering if #2 can affect your credit though.. Isn’t it basically getting an inquiry and then opening a new account and then closing it right away? That affects credit history right?

    Sorry I’m kinda new and looking to find ways to increase my limits with USAA. Currently I have two cards one at 10k and another at 7.5k and they wont budge at the moment.

    • CreditCardGuru March 4, 2012 at 11:27PM

      You don’t have to re-allocate all of it. For example, if you were approved for a new card with $10k, you could re-allocate $8k to your old account while still keeping the new account open with a $2k limit.

  42. Happycardholder December 3, 2011 at 12:28PM

    Tried both methods…. And number 2 worked beautifully. Got 7500.00 limit right away. Thanks for the great advice

    • Erik February 9, 2012 at 8:22AM

      Hey I had my 1st credit card for only 3 years but i neva missed a payment. I want a higher credit limit, do u have any tips?

  43. xtine November 12, 2011 at 1:22PM

    I didn’t even bother trying your 1st strategy with an existing card, since I was denied a CL increase earlier this year. However, I tried strategy #2 and was approved for a CC with a CL that is more than double than my other CC. Thanks for the tip!

  44. David Wisnick November 7, 2011 at 9:08PM

    Do credit card companies still do automatic credit limit increases? Because I used to get those all the time but haven’t during the past 3-4 years.

  45. Hugh May 11, 2011 at 2:36AM

    I tried your second technique and was able to go from a $7,200 limit to $16,500 total using your advice. Thanks man!!!

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