Credit Limit Increases

What is a Credit Limit, and Why is it Important?

A credit card’s credit limit is the maximum amount you can spend before you need to pay off some of the balance. Some credit cards start with small limits of just few hundred dollars. Others come with larger limits of tens of thousands of dollars.

A credit limit is also known as a credit line.

Your credit limits are important because they will affect your credit scores as well as how you use credit cards. The percentage of your credit limit you use (called utilization) is a major factor in credit scores. Credit scoring models generally like to see lower utilization.

In other words, maxing out your credit cards is bad for your credit scores. By increasing your credit limits, you can continue to spend and pay off the same amount each month while lowering your utilization.

My Bank Raised My Credit Limit, Is That Bad For My Credit?

When your issuer raises your credit limit, that’s actually a good sign. It means the lender thinks you’re less risky and that you can handle a larger credit limit.

As long as you don’t use a high percentage of your credit limit, the extra available credit will help keep your utilization low. That’s a positive signal in credit scoring models — it keeps your scores higher.

Also, when your credit card issuer initiates a credit limit increase on their own you will not get a hard inquiry on your credit reports. However, if you request the increase yourself, there will typically be a hard inquiry.

Two Ways to Increase Your Credit Limits

There are two basic ways to increase your credit limits on credit cards: a slow way and a fast way.

• The slow way is to simply wait. Many credit card issuers will give you automatic credit limit increases periodically, as you demonstrate that you can use the card responsibly by paying your bills on time, for example.
• The fast way is to manually request an increase from your credit card issuer. You can do this either online (see below) or by phone.

Method 1: Wait for Automatic Credit Limit Increases

Many credit card issuers will increase your credit limit automatically, you won’t need to do anything. If you show that you are a responsible card user, and use the card enough to warrant a higher credit limit, they want to give you more credit so they can make more money from you.

Issuers tend to give out these automatic increases in intervals of about 6 or 12 months, although this can vary quite a bit. Automatic increases will not generate a hard inquiry — you must always agree to hard inquiries of your credit reports.

This long-term strategy will always be working for you, and you can maximize the odds of getting an automatic credit limit increase by:

• Always paying on time, never making late payments or returned payments, building a positive payment history
• Using the card fairly frequently (this generates swipe fees for the bank)

If you are a responsible credit user but you don’t use a particular card, don’t expect to see automatic credit limit increases on that card. If the issuer doesn’t see a need for you to have a higher credit limit you might not be given one automatically.

Method 2: Manually Request a Credit Limit Increase

Most issuers allow you to manually request a higher credit limit online. Occasionally you might need to call customer service.

Depending on your card issuer and the amount of the increase you request, a credit limit increase request may result in a hard inquiry on your credit reports. This is because the issuer is considering you for a larger line of credit, so the process is similar to when you first applied for a credit card. Generally, you should expect to get a hard inquiry when you request an increase.

A hard inquiry can have a slight negative effect on your credit scores. However, the effect is temporary and small enough that you can generally ignore this when compared to the benefits of having a higher credit limit. Overall, hard inquiries don’t have a huge impact on your credit history, especially because they drop off eventually.

The issuer will often ask for updates to information you gave them when you applied for the card in the first place, like your annual income or monthly housing payment. This is normal, because credit card companies use this information to evaluate how risky you are as a borrower. Since this information is not on your credit reports, they need to get it directly from you and may request proof.

There are three possible results of a credit limit increase request. You will either:

• get the increase you asked for
• get a counteroffer by the issuer for an increase for a lesser amount
• be denied for the increase

The quickest and easiest way to request a credit limit increase is usually online, through your credit card account on the issuer’s website.

It may be a prominent link or you may need to do a bit of digging to find it, depending on your card issuer. Bank of America, for example, makes it quite easy with a link on your account profile. But some other issuers, like Chase, require you to call customer support instead of requesting online.

See the list of credit card issuers below for more specific information and instructions for requesting a credit limit increase with each company.

How to Increase Your Credit Limit Online

1. Log in to your credit card account on your issuer’s website
2. Find the “Credit Limit Increase Request” link or section; see the list below for issuer-specific details
3. Proceed according to the issuer’s instructions, filling in all requested information
4. Wait to hear back from the issuer

You may receive the increase or be denied immediately. In other cases (usually for larger increases) it can take at least several days to process the request. Depending on the issuer, your personal preferences, and the size of the increase, you may receive either an online notification or a letter.

How to Increase Your Credit Limit over the Phone

Alternatively, if you can’t request an increase online or would prefer to do it by phone, start by calling the customer service number found on the back of your credit card.

In some cases, the representatives you’ll speak to will be authorized to increase your credit limit a small amount based on your account history with the issuer. If you’d like a larger increase, you’re probably going to get a hard inquiry on your credit report since you’re requesting a significant additional line of credit.

Requesting a credit limit increase over the phone is much like the online request described above. On the phone, however, you’ll want to prepare some information beforehand. You may not end up needing all of it.

Have the following information ready:

• Personal identifying information, including SSN
• Current employment status
• Total monthly and annual gross income
• Monthly mortgage or rental payments
• The amount you’d like to increase your credit limit
• Your justification for requesting the increase: a history of on-time payments, frequent usage of the card, better credit score than before, an increase in income, if you plan to make a balance transfer to the account, etc.

After you have that information ready, do the following:

1. Call the number on the back of your credit card, or use our listing of “backdoor” card issuer phone numbers.
2. Tell the customer service representative that you’d like to request a credit limit increase. You may be transferred to a different representative in a “credit risk” department.
3. Be courteous when requesting your increase. There is no reason why credit card issuers are obligated to increase your credit limits.
4. The issuer may accept, counter, or deny your request immediately over the phone. In other cases, you’ll need to wait for an online notification or letter from your card issuer with the results.

How Large of a Credit Limit Increase Should I Request?

There’s no easy, exact answer to how much you should request. As discussed earlier, if you don’t get the amount requested you may either get denied or get a counteroffer for less.

You might want to start by requesting a credit limit that’s twice your current credit limit. If you’re denied instead of receiving a counteroffer, you may have requested too much for that particular issuer and your current credit level. Next time you could try requesting a lower amount.

The higher your credit limits, the easier it is to keep a low credit utilization ratio. But if you maintain higher balances on your cards as well, take note that your interest charges and minimum payments will go up too. That’s why we always recommend paying off your balance in full each billing period.

Should I Request a Credit Increase on My Credit Cards One at a Time or All at Once?

There are pros and cons of each approach. Since there’s no definite answer, it’s up to you to decide which is a better fit for you. You may also decide to change your approach depending on whether you’re approved or denied for limit increases.

The more credit limit requests you make, the more hard inquiries will end up on your credit reports. If you have a lot of cards this would mean a lot of hard inquiries, and this could bring your credit scores down in the short term. However, that may be countered by the increase in credit scores you get from having a lower credit utilization, thanks to all your new available credit.

Too many inquiries in too short a time could prevent you from opening new cards. Some issuers automatically deny applicants who have more than a certain number of inquiries in the past two years.

The advantage of this all-at-once approach is that you may end up with very high credit limits right away, and those hard inquiries will all fall off of your credit reports after two years. If you have a few cards with low limits that you use regularly, this approach might be a good way to start.

Or, the other approach is to request increases for your cards one at a time, once every month or two. That way, you can build your credit limits over time and space out hard inquiries so they will fall off of your credit reports more uniformly after two years. You’ll be increasing your credit limits more slowly than in the first method, but the immediate negative impact on your credit scores will be less severe.

Transferring Your Credit Limit

If you have already been denied for a credit limit increase, you have another potential option. You can apply for a new credit card from the same issuer.

Once you are approved, you may be able to transfer a portion of that new credit limit to the card you want to have a higher limit. Be sure to check with the card issuer beforehand to make sure that you’ll be able to do this.

If you have excellent credit there are very few reasons why an issuer wouldn’t approve you for a new card. Depending on the issuer, you may find out if the issuer approved your credit limit transfer immediately. Other times you may need to wait days or weeks for a decision.

In some cases, if you have multiple cards from the same issuer, they may offer you an option to move a portion of a credit line from one card to another. This is less typical, however. Check with your card issuer if you’re interested doing this.

How Issuers Handle Credit Limit Increase Requests

When you request a credit limit increase from your card issuer, some issuers will do a hard inquiry on your credit, while others will do a soft inquiry.

While we can’t guarantee 100% whether an issuer will do a hard or soft inquiry when you request a credit limit increase, we’ve put together the following information based on our research to help you understand what might happen for different issuers. In most cases you can expect a hard inquiry on your credit reports.

We’ve also included instructions for increasing your credit limit online. If you experience something different from what we have here, or have information about how an issuer allows online credit limit increase requests that we’re missing, please contact us and let us know!

American Express

• Sometimes a hard inquiry.
• You will either receive approval almost immediately, or receive a message saying that a decision will be delivered to you by mail in 7 to 10 days. The 7 to 10-day option usually means there will be a manual review.
• You must wait 180 days after being approved for a credit limit increase before you can request another.
• American Express does not increase an accountholder’s credit limit during the first 60 days after the account is opened.

Online Credit Limit Increase Request

1. Log in
2. Click “Account Services” in the top navigation bar
3. Click the link to “Increase Line of Credit”
4. Enter the required information: your desired credit limit and annual income

Bank of America

• Bank of America will typically do a hard pull on your account and then make the decision.
• It may only be a soft inquiry for small increases (under around $2,000).
• In some cases, you must be an account holder for at least 6-12 months before you can request a credit limit increase.
• Although many people will be able to request a credit limit increase online, in some cases you may need to call customer support if you don’t see the option in your online account.

Online Credit Limit Increase Request

1. Log in to your account online
2. In the Card Details section near the top, there may be a link to “Request a credit line increase”
3. Otherwise, click the “Information & Services” tab
4. Click the link for “Credit line increase” towards the left of the page
5. Enter the required information: your total credit line requested, personal information, and financial information

Barclaycard

• Barclaycard will periodically review your card account to determine whether or not it’s eligible for a credit limit increase.
• Usually you’ll get an instant decision, but in some cases it may take longer.
• You can request either a credit limit increase or a decrease online.
• You must wait four months after your credit limit is increased in order to request another increase. And you must wait 6 months after a limit decrease to request an increase.
• If you’re not approved for the increase you request, Barclaycard may offer a smaller increase in your limit.

Online Credit Limit Increase Request

1. Log in to your account online
2. Click the “Services” button in the navigation bar, and then select “Request credit line increase” from the pop-up menu
3. On the next page, click the link to “Request a credit line increase”
4. Enter the required information: occupation, employer, length of employment, additional credit requested, and total annual income

Capital One

• Capital One allows credit limit increase requests at any time.
• In many cases they will approve the increase immediately, though it could take a few days to process your request. If this happens, you’ll receive a letter in the mail with the decision in approximately ten business days.
• Keep in mind that Capital One generally declines requests from accounts that have not been open for at least six months.
• Some Capital One cards will automatically increase your credit limit after you make your first five payments on time, like the Capital One® Platinum Card (Review), QuicksilverOne® Card (Review), and Journey® Student Card (Review).

Online Credit Limit Increase Request

1. Log in to your account online
2. In the “Card Services” menu, click the “Request Credit Line Increase” link
3. Enter the required information: total annual income, employment status, monthly mortgage/rent payment, and monthly spend with credit cards

Chase

• Usually a hard inquiry.
• Chase once allowed customers to request credit limit increases online, but now they require you to call the phone number on the back of your card to request a credit limit increase.

Citi

• If you request a credit limit increase through your online account, you will either be instantly approved or you will have to ask for a manual review.
• In a manual review, you may have to restate your income and list additional bank account information so they can check your balances.
• A hard credit pull is also required if you agree to a manual review. However, if you decline the review, nothing will happen.
• Citi may provides an automatic credit increase periodically. If you are rejected for an increase, it may be the result of a previous recent increase.

Online Credit Limit Increase Request

1. Log in to your account online
2. Click the “Account Management” link in the navigation bar near the top
3. Click “Request a Credit Line Increase”
4. Enter the required information: total annual income and monthly mortgage/rent payment

Discover

• You can only make a general request for an increase, you can’t request a specific amount.
• You’ll need your total annual gross income, total available assets, employer’s name, and monthly housing payment/rent.
• Discover will start with a soft inquiry, and you may be approved instantly. If you are, you’ll be given a maximum amount to increase your limit. You can choose an increase of a smaller amount if you’d like.
• If you’re not instantly approved Discover will do a hard inquiry on your credit, meaning that your account requires more review. You can choose to cancel at this step if you’d like. This process may take a bit longer to get a response, and you’ll be contacted soon with the result.
• Discover will typically increase your credit limit over time if you use your card responsibly.

Online Credit Limit Increase Request

1. Log in to your online account
2. Hover over the “Manage” button in the top navigation bar, then click “Credit Line Increase”
3. Enter the required information: total annual gross income, total available assets, employer name, and monthly housing/rent payment

U.S. Bank

• Hard inquiry.
• You may be able to request an increase online, but in some cases you may not. If you don’t find an online link to request an increase, you’ll need to call customer support.
• You can decrease your credit limit by calling customer support.

Online Credit Limit Increase Request

1. Log in to your online account
2. Select the “Customer Service” tab
3. Click “Self Service”
4. Click “Manage My Accounts”
5. Click the link for “Credit Limit Increase”
6. Enter the required information: income, source of income, and monthly housing payment

USAA

• USAA will conduct a hard inquiry on your credit reports when you request a credit line increase.
• To request an increase online, follow the instructions below.
• Otherwise, request an increase by phone by calling customer support.

Online Credit Limit Increase Request

1. Log in to your online account
2. Send a message to customer support through the online Message Center
3. Include your income and desired credit limit

Walmart

• Some people report getting automatic credit limit increases over time, while other people report actually having their credit limit decreased.

Online Credit Limit Increase Request

1. Log in to your online account
2. Click the link to “Request a Credit Limit Increase”
3. Enter the required information.

Wells Fargo

• You may be eligible for a credit limit increase after your account has been established for at least a year.
• Call customer support to request a credit limit increase.
• Wells Fargo may only do a soft inquiry if you call and ask for an increase without a hard pull. If they say no, try calling a different representative later and asking again.