When and How to Increase Your Credit Limit!

Ready to increase your credit limit? It may be a lot easier than you think to get a little more leeway from your credit card company! Many people wonder how frequently they can increase their credit limit.  The answer is about every 90-180 days.  There are a few things that you should know before you try to get your credit limit raised.

Make Sure You Are in Good Standing

To get your credit raised, you have to be in good standing. That means keep your eye on the future when you are managing your credit and:

  • Make on time payments
  • Pay off the balances when you can
  • Do not look for “special favors”

Make sure you make your payments on time, this is a huge factor in when you are asking for a raise to your limit. If you can pay off your balances every month you should. It not only helps you to build credit, it shows that you can manage the credit that you already have.  It can bode well when you ask for an increase to your limit to show that you can easily pay off your current balance.

There are times when everyone runs into a little trouble and have to ask for an extension on the due date, while it may not affect you in the long run, it can affect the cards company’s willingness to extend you additional credit.

When You have a Good Payment History

Having a good payment history really puts you in a great position! You can ask for whatever you want and may even get it all!

Assuming you have good payment history you can:

Call into your card company’s customer representative, ask them how you are doing with payment history, is everything on time etc.  After they say, “Well, Mrs. Jones, you’ve never missed a payment.” then ask “What’s the best you can do for me, I would like a credit increase and my interest rate lowered to 0%.” No harm in asking, whenever eligible. Of course you may not get exactly what you are hoping for but you likely will come away with something. You may even get exactly what you are asking for, it all depends on your credit card company and whether or not they are flexible, how long you have been with the company and if they are running a push for retention.

Ask, you have nothing to lose!