How to increase your credit limit

If you’ve been using a credit card responsibly, you might be wondering whether you’re eligible for a credit limit increase—also called a credit line increase. You can typically request an increase by contacting your card issuer directly. In some cases, your credit card company might increase your limit automatically if you’ve demonstrated responsible use over time. 

There are no guarantees that a credit card issuer will increase your credit limit. But there are some steps you can take to help you qualify. Learn more about how credit limit increases work and how you may be able to get one.

What you’ll learn:

• Your credit limit is the amount you have available to borrow on a credit card account.

• You might be able to increase your credit limit by asking for an increase, or your lender could give or offer one.

• Keeping your financial information up to date, making on-time payments and monitoring your credit reports may help you qualify for a credit limit increase.

• If you’re a Capital One cardholder, you can request a credit limit increase on the app or website.

Your credit limit is the maximum amount of money a lender allows you to spend on a credit card. As you use your card, your available credit goes down. When you make payments, your available credit goes back up, minus any fees or other charges. Each lender sets its own credit limits, but some factors that can determine your limit include your:

• Credit history

• Credit scores

• Income 

• Current debts 

• Debt-to-income (DTI) ratio

Eligible Capital One customers may be able to exceed their limits for occasional spending needs, with no over-the-limit fee. View important rates and disclosures. If your Capital One account has access, you can use the Confirm Purchasing Power tool to check whether an over-limit purchase may be approved. You can also disable the ability to spend over your credit limit in your over-limit preferences.

How to go about requesting a credit limit increase can depend on your credit card issuer and its policies. The process also depends on whether you requested the increase or your lender initiated it. 

Here are some ways you may be able to request a credit limit increase:

• Online: You can usually request a credit limit increase from your credit card account—either through your issuer’s website or mobile app. Look for the “request credit limit increase” or “request credit line increase” option from your issuer’s online portal. If you request an increase, your credit card issuer might require information like your income, employment status and monthly mortgage or rent payment.

• Over the phone: You may be able to call your credit card issuer’s customer service number to request the increase. Typically, this number can be found on the back of your credit card. When you call, your credit card issuer may request information about your income, employment and housing payments.

• By accepting an offer: Sometimes, lenders initiate a credit limit increase by offering additional credit. Additional credit is generally offered or given if you’ve shown responsible financial habits and behaviors over time. But issuers can set their own policies on credit limit increases. Lenders may increase your credit limit automatically too.

Capital One cardholders can request a credit limit increase on the Capital One Mobile app or online. Make sure to have information such as your annual income, employment status and monthly rent or mortgage payment on hand. For more information, get answers to frequently asked questions about credit line increases with Capital One.

Capital One accounts that have been open for only a few months are generally too new to be considered. If an account has received an increase or decrease in the past few months, it typically won’t be considered either.

Whether increasing your credit line is a good idea depends on your financial situation and how you use credit. Here are a few potential pros and cons of a credit limit increase to consider:

On the positive side, a credit line increase: 

• Often lowers your credit utilization ratio: Usually written as a percentage, your credit utilization ratio is how much revolving credit you’re using, divided by the amount of available credit you have. If you keep your spending about the same but increase your credit limit, your credit utilization ratio will go down. And a lower credit utilization ratio can help improve your credit scores. 

• May increase your purchasing power: A higher credit limit can provide more flexibility to make a large purchase or cover emergency expenses when necessary.

On the downside, a credit line increase: 

• Could result in a hard inquiry: Not all issuers conduct a hard inquiry for a credit line increase, but some might. Capital One, for example, doesn’t require a hard inquiry for a credit limit increase. A single hard inquiry will typically lower your credit scores by only a few points, according to FICO®. But multiple hard inquiries may have a more significant impact.

• Carries the risk of overspending: With more credit at your disposal, there might be a temptation to spend more. And that could make it harder to pay off your balance each month. Carrying a balance can affect interest charges, credit scores and more.

When to ask for a credit limit increase is up to you, but policies for credit limit increases differ from issuer to issuer. 

If you’re eligible for a credit limit increase, your request may be approved immediately. But sometimes requests can take a few days to review. And your issuer may ask for additional information before making a decision about your request. Once your request has been reviewed, you’ll find out whether you’ve been approved for an increase through an email, an online notification or a letter.

If you’re not financially stable or will be applying for other types of credit in the near future, it might be a good idea to hold off on requesting a credit limit increase. And if you have trouble practicing responsible spending habits, requesting a higher credit limit might not be a wise decision. If your account is too new, you may not be able to request an increase.

Here are answers to some frequently asked questions about how to increase your credit limit:

Your credit card issuer may decide to increase your credit limit because of changes in your financial situation or improvements in your credit scores. Or you could request an increase yourself. 

A lender isn’t guaranteed to give you an increase when you ask for one. You’ll likely be asked to provide information like your income, employment status, and monthly mortgage or rent payment. Your credit card company may weigh these, along with other factors, to decide whether to approve your request.

If you’re looking for a new credit card, Capital One can help. 

• See whether you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn cash back on every purchase, every day, with a cash back rewards card. 

• Monitor your credit report and score with CreditWise. It’s free, and using it won’t hurt your credit scores.