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News: How to Get a Credit Limit Increase - Credit-Land.com

There are several ways to request a credit limit increase: you can do it online in your account, through the issuer's app, or by calling the issuer. However, the best way to request a credit limit increase is to call the issuer and speak to a representative on the phone. But before you call, make sure you are prepared.

You need to ask yourself why you need a credit limit increase on your credit card. Is it because your income has increased and you can now manage more credit? Or is there a big purchase or expense you need some extra money for? Keep in mind, a higher credit limit will change your overall credit utilization, probably lower it, which is good for your credit score. However, if you spend that additional credit limit, your utilization can go up and your score down. So make sure you weigh all pros and cons.

It is also a good idea to check your credit reports with all three major credit bureaus before you request a credit limit increase. The issuer will most likely perform a hard pull to decide whether to approve you for a higher line of credit or not. So if you have bad marks on your reports, the issuer may not like it. Plus, a hard pull will remain on your credit reports for two years and affect your scores for a year or more. So make sure a hard inquiry won't impact you more than you expect.

Once you've assessed your current financial situation, weighed all do's and don'ts, and scrutinized all possible consequences of the credit limit increase, it's time to gather the documents you'll need to support your request. In most cases, the issuer will want to know your current annual income, employment status, and how much you pay for housing each month. So have that information ready before you call.

It's also won't hurt to write down some questions you what answered before finalizing your request. For example, you may want to ask about additional credit limit increases in the future, or whether the issuer performs a hard pull or a soft pull. Remember, it's OK to ask your issuer questions.

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