How Do You Ask For a Credit Card Limit Increase?

| Posted: 09-07-2008 | Comments: 0 | Views: 83 | Rating: (136)

(?)

Depending on the way you handle your credit card spending, many banks will automatically give you a higher credit card limit after a specified period of time. Some review their credit card holders' accounts on an annual or semi-annual basis and, based on the criteria they specify, may increase limits for certain customers.

If you don't want to wait for an automatic increase, your credit score is good, and you always pay on time, you may be able to increase your limit simply by calling and asking for it. You may be asked to fill out an application for increased credit first. If your request is declined, you can also consider the option of applying for a new credit card with another bank.

The most important thing you can do to get a higher credit card limit is to prove to the bank that you are worthy of an increase. They want to know that you are stable financially and will be able to pay back an increased amount. Here are four tips to help increase your chances of being approved for a credit limit increase by showing what a good borrower you are.

1. Paying on time is one the best ways to increase your chances of getting a higher credit card limit. By paying more than the minimum balance each month, not only do you save on finance charges, but you also put yourself in a good position for becoming eligible for an increase. It's even better if you can pay off the entire balance each month.

2. Stay within your limit. Most credit cards charge a hefty fee for over-the-limit spending. By staying within established credit limits, you are showing you have control over your spending. This reinforces to the bank that you are a good credit risk.

3. Use your card regularly (and not just for emergencies.) If your card is rarely used, it's harder for the bank to get a good picture of your spending and repayment habits. The bank will be more reluctant to increase your credit limit if the card is not used on a regular basis. Of course, you want to spend only within your means. You aren't doing yourself any favors by burying yourself in credit card debt.

4. Don't assume your credit limit will be automatically increased. Many banks do raise credit limits and some don't. If you are taking all the steps listed above, you can call your bank or credit card company and personally ask for an increase. If you have an online account for your credit card, you can also look for a button or link once you log in that will allow you to request a credit line increase.

Keep in mind that with increased limits, it's easy to fall into the trap of increased spending. Be sure you can pay back what you're asking to borrow. Another thing to keep in mind: some people say that calling your bank to ask for a credit card limit increase may actually have a negative effect on your credit score (depending on your other credit risk factors) so make sure to weigh the potential disadvantages against your need to have a higher credit limit

Getting a higher credit card limit has advantages, even if you don't use the full amount. Your ability to buy is greater and there's peace of mind in the knowledge that you have an extra cushion in the event of an emergency. It can also improve your credit rating, particularly if you keep the amount that you owe on the card low (or pay it off each month). Other credit card companies will see that you are a good borrower and that you keep your spending under control.

The bottom line is this: Responsibly using the credit you already have and consistently meeting your current financial obligations is the best way of getting a higher credit card limit in the future.

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Credit Card Limit Increase

Article Source: http://www.articlesbase.com/credit-articles/how-do-you-ask-for-a-credit-card-limit-increase-478041.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

Jamie Jefferson writes for Momscape.com, where you can find the latest promotions on a popular cash back credit card as well as a great business gold rewards card.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:

Latest Credit Articles

How To Cope With Credit Card Debts
By: Stephen Chua | 10/10/2008
Credit card debts can be very stressing for many people. However, there are many things you can do to cope with it. This article reveal some of the things you can do now to reduce your debts and stress.

Credit Repair and the Secret to Rebuilding Your Credit
By: Jim Kemish | 10/10/2008
Credit repair can produce life changing results. The process can be quick and satisfying if you know what to do. A credit repair expert reveals powerful credit rebuilding secrets that will help you reach your goals easily.

Tips On Receiving A Bad Credit Loan
By: Kay Brown | 10/10/2008
One of the biggest causes of stress and marital breakup is financial debt that couples incure in effort to acquire the good life.

Is it Possible to Raise My Credit Scores?
By: Chane Steiner | 10/10/2008
The first consideration when you're trying to raise your credit scores is to know where you currently stand. Everyone has scores that range between 300 and 850. This number determines if a creditor will extend credit to you as well as interests rates you might pay, is based on your ability to repay a loan, the interest rate you might be offered, as well as often determining rental or mortgage payments.

Consider Business Credit Card in Your Business Operation
By: optimizer | 09/10/2008
If you’re on your way to start a business or have already established a business, perhaps applying for a business credit card would be your next move. There are many advantages in using a business credit card and being able to build your business credit history is just one of them.

Credit Secrets and Myths
By: Rook Davis | 09/10/2008
Good credit is a great thing to have, but beware of the supposed "shortcuts". Find out what things can get you in hot water.

Verify Your Client Credit Cards With Bin Database
By: Gen Wright | 09/10/2008
BIN Database is a useful service for online merchants, online payment processors and other financial institutions that will help them in verifying their customer's appliations by checking BIN numbers of their credit cards. BIN Database contains the information about the issuing bank, country, and credit card type.

A Quick Word of Advice for Students Looking to Take Out Loans
By: Gen Wright | 09/10/2008
There are many reasons why a student may wish to take up loans. Sometimes, these reasons appear very logical at that time.

More from Jamie Jefferson

Five Secrets for Staying Motivated in Your Exercise Program
By: Jamie Jefferson | 01/10/2008 | Sports and Fitness
We all know how easy it is to put off exercise, especially if you have a busy life, but here are five key ways to keep yourself motivated:

Prepare Your Lawn and Garden for Winter: Five Things to Do Now
By: Jamie Jefferson | 28/09/2008 | Landscaping
If you want to have a bright and happy garden when the snow melts, you need to take the following steps before the temperature starts to drop.

Prepare Your Car for Winter: Four Things to Do Now
By: Jamie Jefferson | 28/09/2008 | Cars
Just as you change your wardrobe for winter, your car needs a winter wardrobe. Use the following steps to help ensure your car operates safely during the winter.

Exercise Sneak-Ins: Quick, Easy and Everyday Ways to Incorporate More Exercise Into Your Routine
By: Jamie Jefferson | 18/09/2008 | Sports and Fitness
It's no secret that most of us need to get more exercise on a daily basis. But if you think that this means scheduling time at the gym and spending all your free hours on a treadmill, think again! Here are some simple ways to incorporate more movement into your daily activities.

Discount Dental: 4 Ways to Save Money on Dental Care
By: Jamie Jefferson | 11/09/2008 | Health
Get the services you need without spending your entire paycheck on your teeth. Here are four tips for saving money on dental care.

Negative Heel Shoes: Why You Might Want a Pair
By: Jamie Jefferson | 02/09/2008 | Wellness
After years of suffering wearing high heels or other elevated shoes, many people are experiencing the relaxation and rejuvenation that can be experienced when wearing negative heel shoes. Here's why you might want to consider a pair for yourself.

Keeping Your Brain Healthy While You Age: Five Tips to Help You Stay Sharp
By: Jamie Jefferson | 29/08/2008 | Wellness
Recent scientific discoveries have shown that the body is not the only thing that ages as we grow old. Your brain can also experience the effects of aging, especially if you don't take steps to keep it healthy. The following five suggestions will help you stay sharp.

Calculate Your BMI: The Basics of Body Mass Index and How to Figure Out Your Own
By: Jamie Jefferson | 28/08/2008 | Weight Loss
What is BMI? Here are the basics of the Body Mass Index, plus three easy steps to determining your own BMI.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.16, 9)