Looking for a higher limit and don't know how to get a credit card with a high limit? Here are some tips and precautions you need to take to get one.
There are a number of methods you can use to get a higher credit card limit, here we'll show you some of the main ways to get there.
So here's how to get a credit card with a high limit.
How to get a credit card with a high limit
There are some strategic ways on how to get a credit card with a high limit:
Expect automatic credit card limit increases
Many credit card companies increase your credit limit automatically, without you having to lift a finger.
If you show that you are a responsible credit card user and use the card enough to warrant a credit limit increase, you can get a higher credit line every 6 to 12 months. You can increase your chances of getting an automatic credit limit increase.
Positive track record and payment on time
When it comes to how to get a credit card with a high limit, building a positive payment history, never making late payments and never having payments returned.
Your history with the card is indispensable if you want to get a considerable increase in your credit limit.
Paying your bills on time will not only give you a good track record, but it will also prevent you from getting your name dirty or incurring high interest rates.
Use the available limit
If you have a budget that can cover the limit on your card, use the initial limit that your card company has given you every month.
This will show your bank that you need more credit, but it's worth remembering that your payments must always be up to date; being late with invoices won't make a good impression.
Request a credit limit increase
Don't want to wait for your card issuer to increase your credit limit? You can contact them directly to request one.
Your card issuer may include a request link in your online account or you may need to call customer service to initiate a request.
Some card companies offer live chats to answer questions, join the conversation and see how to increase your limit.
What are the benefits of a higher credit limit?
Being approved for a higher credit limit has some very good benefits (such as increasing your credit score) and can set you up for future success.
More purchasing power
When you are approved for an increase, you have access to more money. Remember that keeping a higher balance on the card means a higher credit utilization rate.
Paying for your purchases immediately allows you to buy larger ticket items, keeps your usage down and helps you earn more spending rewards.
Future financing
A higher credit limit, when used responsibly, can lower your credit utilization and increase your credit score.
This means that a higher credit limit can indirectly prepare you to obtain better conditions and lower interest rates on future financing due to these higher credit scores.
What should you know before increasing your credit limit?
Credit card debt isn't always worth it
If you're not sure you'll be able to handle your new credit without acquiring more credit card debt, it may not be a good idea to increase your credit limit.
But if you're confident that you can pay your bills on time and pay all new charges in full each month, then it might be a good idea.
Only ask for a credit limit increase when it makes sense
A good time to ask for a raise is after receiving a raise, when your spending habits change or when you improve your credit score.
It's also a good idea to wait about 6 months between requests to increase your credit limit.
You can only get a certain amount of credit
A credit card issuer may only be willing to grant you a certain amount of credit based on all your accounts.
Therefore, an increase in a card's credit limit may prevent you from increasing the limit on other accounts or opening new ones.
How big a credit limit increase should you request?
There is no single answer to how much credit limit you must apply. It depends on your income, credit score and account history.
If you're looking for a small increase, credit card issuers will be able to approve you based solely on your income and account history. Larger credit limit increases, on the other hand, will probably require a more rigorous inquiry into your credit reports.
If you feel comfortable with a hard inquiry, you may want to start by requesting a credit limit twice the size of your current credit line. If you get denied instead of receiving a counter-offer, you may have asked for too much for that particular credit card company and your current credit level.
