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How to Improve your Credit Limit

What many people don’t realize is that there are steps you can take to increase their credit limit. A credit limit is the limit you have on a credit card that you can spend. Increasing it is just that, making the amount that you can spend larger. Doing this can have many benefits but also some negatives. Obviously the larger credit limit gives you the ability to spend more and have more spending power which leads to a decrease in your credit utilization rate. A lower utilization rate can boost your credit score which is the goal of many people. 


So what exactly are the recommended steps to accomplish this?

Be rewarded for responsible behavior

Lenders often increase credit limits automatically for responsible use of the account. Basically if you use your card often, don’t carry a large balance by paying it off quickly or often than you could set yourself up for an automatic increase. By these actions, the lender will assume you can handle the higher limit and will continue to act responsibly. 

Online Request

There are sites, specifically associated with your bank, that you can go on to initiate an increase. By keeping information that could affect your credit up to date you may get an increase. For example, if you have a pay increase or change in your income than you may want to update this information with the bank so that it may have an effect on your credit

Make a Phone Call 

Besides going online and trying to update your information, it may be easier to make a phone fall. Having a conversation with a human being is sometimes more effective. You can literally call your bank and ask a representative for an increase. If they can’t help you right away, they may be able to assist in telling you how you can accomplish the increase.

Get new credit

Besides trying to increase your existing forms of credit, you can try to establish new credit with a higher limit. If you think your credit score may have improved than you should apply for new credit. Look for offers in the mail and apply to see if they offer you a higher limit.


Making these steps may seem to be a great idea but it is important to do it at the right time. You really can’t ask for an increase if you have a bad rapport with the creditor. So when is the right time?

The rule of thumb when it comes to asking for an increase is that you have to be in a good spot with the creditor or lender. If you improve on any aspect of your life where they may want to hear about it because it would affect your credit then it may be a good idea to do. For example, if you get a new job where you are making more money and can afford more than that may be something they want to know something about. An increase in income can affect your credit limit.

Just like with running your credit, you can’t over ask for limit increases. Every time you ask for this and pull your credit report then the lender can see it. This can lead them to believe you are desperate and may raise a red flag. It is important for you to wait in between each request. 

You need to consider your timing. A credit score increase most likely means a credit limit increase. This is great but you need to think about your future financial plans. If you are aware of any large purchases coming up then you may want to use your good credit score for the purchase (like a car or house). It is always smart to think ahead.


There are tradelines companies that offer their help in increasing your credit for a fee. They improve credit utilization automatically. If you are unsure or unsuccessful at doing it on your own you may want to try using their assistance.  One recommended company is coast tradelines.


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