Having a higher credit limit on your credit card can be beneficial in several ways.
It can help improve your credit score by lowering your credit utilization ratio.
It also gives you more purchasing power and flexibility with your spending.
But automatic credit limit increases arent automaticyou have to ask your credit card issuer for one.
Luckily, the process is fairly simple.
Before asking for an increase, double-check there are no errors or negatives bringing down your credit score.
Lenders will check your credit when reviewing a request, so the higher your score, the better.
Also confirm youve been making on-time payments.
This responsible behavior makes you look reliable.
Calculate yourcredit utilization ratio.
If youre under 30%, youre in good shape.
If youre consistently going over that, its a sign you could benefit from a higher limit.
Tell your issuer this in your request.
Then, decide how much of an increase to ask for.
There are no hard rules, but good targets are between 25-50% of your current limit.
Dont go overboard and request a doubling or tripling of your limit, since that will likely get denied.
Make a request online.Dont want to get stuck waiting for a customer service rep?
I cant blame you.
There should be an option to submit your request through your cards online portal.
Just confirm your profile details (like your income information) is up to date before you press submit.
If your requests arent successful, consider looking for a new cardwith a higher credit limit instead.
A higher limit means more flexibility and can help build your credit.
Just dont treat it as permission to rack up more debt.
Instead, use that higher limit to keep your credit utilization ratio, and keep making thoseon-time payments.
