How To Increase Credit Limit
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 know 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. 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 (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 asked for.
Every situation is different so there is no general rule of thumb in terms of percentages or dollars. If you are unsure, ask on the forum to get advice from others.
Strategy #2: The backdoor double-trouble
Are you troublemaker? If so, the backdoor double-trouble may 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 backdoor double trouble can save the day…
In a nutshell, the backdoor double is applying for a second (new) credit card from the same bank and then after you are approved, transferring that credit limit to your other card.
For example, let’s say your current credit card has a $14k limit and that is the max they will give you. 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 good. That’s why this is my preferred method.
I have used this strategy a number of times to increase my credit card’s limit by tens of thousands of dollars. Here’s my most recent example of doing this during spring 2013:
Step 1: I applied for this killer Chase British Airways offer.
Step 2: After using the bonus miles, I called up Chase to cancel the card. But when I did this, I first asked to transfer the $8,000 credit limit from the British Airways card 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 2013 (which I constantly update): United Airlines, Sapphire Preferred, Marriott Rewards, and Freedom.
Your thoughts?
Got tips on how to increase a credit card’s limit? Post them in the comments below!
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.
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.
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.
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?
Yes, It’s true. Higher limit, better score.
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.
What is the procedure for re-allocating credit from one card to the other? I’m having trouble understanding how to do this.
I’ve tried both methods and they do indeed work.
thanks for the article
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?
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!
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.
how long after having my first card should i ask for a credit increase and or apply for the other card?
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!
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?
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?
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.
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.
$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.
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.
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.
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
Close your accounts and change the bank.
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.
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!
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?
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.
if I do the second one will they have to run my credit again and will it affect my credit score?
they will run your credit. each credit inquiry affects your score by about five points.
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.
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?
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.
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?
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.
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?
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.
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).
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?
Probably.
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.
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.
Tried both methods…. And number 2 worked beautifully. Got 7500.00 limit right away. Thanks for the great advice
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?
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!
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.
I tried your second technique and was able to go from a $7,200 limit to $16,500 total using your advice. Thanks man!!!