Tips on Ways to Increase Your Credit Limit
Learn more about credit lines, tips on getting a higher credit limit and when may be a good time to ask
If you’ve been using a credit card responsibly, you might be wondering about a credit limit increase (sometimes called a credit line increase).
And while there are no guarantees, there are some steps you can take—or keep taking—to help your chances of qualifying for a higher limit. In this article, you’ll learn how credit lines work and tips on when to consider asking for an increase.
What Is a Credit Limit?
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.
Types of Credit Limit Increases
There are several types of credit limit increases. In some cases, you may request additional credit. Other times a creditor may come to you with an offer to bump up your limit. In general, additional credit is usually offered or given to customers who have shown responsible financial habits and behaviors over time.
Learn more about how Capital One® handles credit limit increases in this article about credit policies.
Tips on Getting a Higher Credit Limit
Here are some things to keep in mind if you’re thinking about requesting a credit limit increase:
- Keep your financial and personal information up to date: Federal regulations require that credit card companies use up-to-date income information when considering an account for a credit limit increase. Check your account details at least once a year to make sure they’re up to date.
- Pay monthly statements on time: Paying loans on time is one way to build your credit history. It’s one indication that you’re financially responsible. If you have trouble staying organized, consider automatic payments or electronic reminders to help you avoid missing payments.
- Pay more than the minimum on your credit card bills: Even if you don’t pay your full credit card balance, try to make more than the minimum payment when you can. It’s a good rule of thumb no matter what, because it can help you save money on interest charges.
- Review your credit report for errors: You can get a free copy of your credit report every 12 months from each of the three major credit reporting agencies. Take some time to make sure your information is current and up to date. And if you find a mistake, take steps to correct the error on your report.
- Monitor your credit : Between annual checks, you can use a tool like CreditWise® from Capital One to keep an eye on your credit, too. CreditWise sends you alerts whenever something meaningful changes on your TransUnion® or Experian® credit reports. You can also explore the potential impact of your financial decisions before you make them. And it’s free to everyone, even if you’re not a Capital One cardholder.
When Am I Eligible for a Credit Limit Increase?
Policies differ from issuer to issuer. According to Capital One’s credit policies, accounts that have only been open 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.
If you are eligible, your request may be approved immediately. Sometimes requests can take a few days to review. Either way, you’ll find out whether you’ve been approved for an increase through an email, online notification or letter
How Much Should I Request for an Increased Credit Limit?
The amount you request is a personal decision. Whether you’re looking for extra flexibility to help with an unexpected emergency, a large purchase or everyday expenses, examining your goals and your financial situation can help guide your request. Just make sure the amount you request is one you’re comfortable with paying off without overextending yourself!
Learn More About Credit Limit Increases
Looking for more information about the ins and outs of credit limit increases? Check out Capital One’s credit limit increase FAQs.
We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate the Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.
Your CreditWise score is calculated using the TransUnion VantageScore® 3.0 model, which is one of many scoring models used by lenders. It likely won’t be the same model your lender uses, but it is an accurate measure of your credit health. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion.