Spending Over Your Credit Card Limit

If you already maximized your credit limit, you can contact your bank for more. You can contact them so that they could lift it and increase your allowable credit. If you want to do this request, make sure that you have maintained your credit card payment for the past few months. They will check your account activity and from there they will decide if you deserve an increase or not. If you want to increase your chance of getting an increase, read more:

1. Ask yourself why you want a credit limit increase

If you’re thinking about asking for a credit limit increase on your credit card, the first step is to assess your current financial situation. Consider the pros and cons of a credit limit increase.

On the plus side, a higher credit limit may lower your credit utilization rate if you keep your balance under control. You can figure out your credit utilization rate by dividing your total credit card balances by your total credit card limits. Having a higher credit limit on one or several card accounts can help keep your utilization rate below 30 percent.

2. Automatic increases

Credit card issuers will periodically review customer accounts to determine whether or not customers should get a credit limit increase. If so, card issuers may automatically hike credit limits without prior notice.

Automatic credit limit increases tend to be more common for credit card accounts that have relatively low limits. As your credit limit gets higher, it is less likely the issuer will voluntarily hike your limits.

Since credit card issuers typically perform a soft credit inquiry when evaluating a customer’s account for automatic credit limit increases, there is no negative effect to credit scores.

3. Transferring Your Credit Limit

If you get denied for a credit limit increase, don’t give up: Another strategy is to apply for a new credit card from the same issuer and then transfer a portion of your new credit line to your other card.

To transfer your new credit line to the original card, you’ll need to contact customer service. Depending on the issuer, your credit limit transfer may be approved immediately, or you may need to wait days or weeks.

If you already have two credit cards from the same issuer, you can ask to move a portion of your credit line from one card to another.

Say you have two Chase cards: one with a $10,000 limit, and another with a $20,000 limit. You could ask to transfer $5,000 of your credit line from the second card to the first card, giving both cards a credit limit of $15,000. Since you’re not applying for more credit — and instead are just asking to move your current credit around — you may have better luck with this route.

4. Plead Your Case, But Don’t be Desperate

If you call the credit issuer crying that you have an emergency and think your sob story will make them empathize with your situation and increase your credit limit — think again.

Don’t tell them why you need it, tell them why you deserve it. And remember, being kind to the person on the other end of the phone can also help — they’re just doing their job, so don’t take your financial frustration out on them. Not only will being rude be unlikely to help your case, but yelling or cursing at a representative can give them the right to hang up on you, guilt free.

5. Increase Your Security Deposit

If you have a secured credit limit, you can typically raise your credit limit by paying more towards your security deposit. The best option for increasing your credit limit on a secured credit card is to call the card’s customer service number to find out the exact steps to take—each issuer is different.

6. Make payments on time and pay your balance in full

Timely payments greatly improve your chances for approval because they show the bank that you are a responsible and low risk borrower. Paying off the full balance also shows the bank that you’re capable of managing a higher credit card limit.

7. Look for competing offers

Do you get a lot of credit card offers and requests in the mail? Open up a few and note the credit line limits being offered. Your existing credit card providers may be more willing to hear your case after hearing you are being pursued by other creditors.

8. Use Your Card Responsibly 

Credit limit increases aren’t handed out willy-nilly. Card issuers may automatically raise credit lines for folks who have proven that they can use their cards in a sensible manner. That means that in order to have the chance to borrow more money, you’ll need to show that you can make full, on-time payments.

Credit card companies usually review the files of new cardholders after roughly six months. If you’ve carried a balance the majority of the time or you’ve made multiple late payments, you’ll likely be passed over for a credit line increase. Only individuals with good credit will receive this kind of reward.

9. Watch Your Credit Score and Credit Report

When you’re requesting a credit limit increase, it’s important to know what numbers credit card companies are seeing. Check your credit score and credit report each year with a tool like Credit Wise. If you do see a mistake on your report, contact the credit reporting agency right away so they can resolve any errors and help make sure your score isn’t negatively affected.

10. Increase your income

The more money you make the more comfortable a credit card company will feel extending your credit limit. When you receive a raise, chances are good that – upon request – your credit card company would be willing to raise your limit. You can also pick up a side job as a way to raise your income and thus raise your credit limit.

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