This is a question that many people ask for different reasons. Some good and sensible reasons exist for wanting a higher credit limit. Some people are not. Let's look at some of the things you need to think about if you want to change your credit limit.
Your credit limit is the most money you can spend on your credit card all at once. This total includes everything, like purchases, balance transfers, cash advances, fees, and interest charges. This is a limit that has already been set, and if you go over it, you might have to pay a penalty fee. When you raise your credit limit, you can buy more without having to pay extra fees. It's that easy.
Here are some things you can do to get your credit card limit raised.
First, you should ask the company that gave you the card to send you any information they may have about how to ask for a higher limit. Some businesses don't have this in writing, but a lot of them do. You can figure out if you can meet the new requirements by reading the literature.
Second, you should know that how well you've paid your bills so far will be a big part of whether or not you get the higher limit. If you haven't paid your bills on time in the past, the card company may think you won't pay the higher level either.
Timing is another thing you should look at. If you just got the card a few months ago and have already spent all the money on it, it's likely that the bank or card issuer will want to wait before giving you more credit.
If your card is already at its limit, it's best to make on-time payments for at least six months (or longer) before asking for more credit on the same card.
If you know ahead of time that you will want to raise the credit limit on a certain card, use it often and pay on time. This shows the company that you are using the card and that you are a good credit risk.
How much you pay each month will also make a difference. When you can, pay off the balance on your card more than once. This shows the bank or card issuer that you have your finances in order. If you only make the minimum payments, the company may wonder if you can pay more if they give you a higher limit.
Try not to ever have to pay something late. When you ask for a higher credit limit, the card issuer will look at how often you pay late. This will not help your case.
You might be able to get a higher limit if you use your current card wisely and pay your bills on time. This is important to the issuer in more ways than you can think of.
Keep in mind that if you already have a lot of credit card debt, getting more credit could hurt your finances in the long run. Many people think they can get out of debt trouble if they can just borrow more. Most of the time, this doesn't work. If you really need more credit and can pay for it, ask for it. If you've paid your bills on time in the past, you're likely to get it.
