Credit cards can be a life saver, but there are times that your credit limit is not enough for you to take care of your expenses. You may be forced to make a request to get a credit limit increase.
Requesting A Limit Increase
Sometimes, if you have demonstrated the ability to handle the use of a credit card and have been keeping up with the payments each month on the card and never exceeding the limits of the card, credit card companies will automatically enable you to get a credit limit increase on your credit card without you having to ask them for it. Periodically, credit card companies look over credit card activity for individuals to see if they automatically qualify to get a credit limit increase. In other cases, you may have to submit a request to get a credit limit increase.
When you have to put in a request to get a credit limit increase, you must start with calling your credit card provider. Listen closely to the prompts, one of them should give you the option to get a credit limit increase. If you do not hear such an option, just select to speak with a customer service representative instead. If not by phone, you may be able to get a credit limit increase by making a request online. When you request an increased credit limit, you may be required to provide some information, including your current income, the amount you need for the increase, and the reason why you need to increase your limit.
When you request to get a credit limit increase is being processed, your credit card provider may access your credit score and report as well. If your credit report has been soft pulled, that means that it will not affect your credit score but will still appear on your credit report. If your report has been hard pulled, it will affect your credit score and show up on your credit report. You may get an instant approval from your credit card issuer, or you can be notified by mail.
Another way to get a credit limit increase is to pay more on your deposit if you have a secured credit card. If you wish to do that instead of going through the process of applying and waiting on approval, you can contact the customer service line available on the back of your card to get the steps necessary to complete the task.
If you are approved and are able to get a credit limit increase, be aware of the fees that will increase right along with your credit limit. Your credit card issuer will inform you of the additional fees, and if you are not certain that you can afford the additional fees, it may be beneficial for you to get another credit card instead of increasing the limits of your current card.
Denied For an Increase
It is possible that your request to get a credit limit increase could be denied. There are a few different reasons why this could happen.
- Your credit card is still too new to be approved for a credit limit increase.
- Your income is not enough to qualify you for a credit limit increase.
- You have a credit card that does not offer the ability to get a credit limit increase.
- Your reasons for the increase are not acceptable by the credit card issuer.
- You have negative information on your credit report.
- You have a high credit card balance that has not been paid yet.
- You have recent delinquent balances on your credit card.
In any case that your application is denied, you should receive a notification called an adverse action letter to explain to you the reasons for the credit card issuer denying your request for a credit limit increase. With your adverse action letter, your credit card issuer may also send you a copy of the credit score disclosure that they examined before denying your request.
If your request has been denied, do not be discouraged from asking for another credit limit increase in the future. Just be mindful of the reasons that your credit card issuer denied your request and work at improving your chances of being approved for future limits.
Increasing your credit card limit is beneficial for individuals who need to make a purchase that is outside of their current credit card limit. The process may take only a few minutes to an hour, or you may have to wait a few days to be notified if your request was approved or denied. You may automatically qualify for the increase if your credit card is in good standings with the company. Whichever method you have to take to increase your limit, be mindful of the consequences that you may have to face. If approved, you may face extra fees. During the review process, or your credit score and report may be affected. Just make sure that a credit limit increase is the best way to handle your credit card.