Comments on: How to Increase Your Credit Limit

By: Maria Wantell

Maria Wantell — Tue, 08 Nov 2011 05:19:05 +0000

We’re starting to look for a house, and I think asking for credit increases will boost our chances of a good interest rate (based on DTI). I’m thinking of asking for an increase on some of my cards. One of them is going to automatically increase my limit in about a month.

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Tue, 01 Sep 2009 12:49:08 +0000

Nice tips, I always found you got automatic increases right after zeroing out a balance . . . without asking.

By: Wilma

Wilma — Mon, 31 Aug 2009 00:14:15 +0000

I’ve never had to ask for a limit increase. Just before the market crashed last year I cut up and canceled $100,000 in credit cards. I couldn’t believe I was left to have that much credit . The bank I deal with gave me 2 at $15,000 a piece. They knew what my pay checks looked like and where and how I spent my money. Good thing I have restraint. I know it hurt my credit rating when I canceled 6 cards but it couldn’t have been that bad cause I bought a new car a couple months later. Got a great interest rate and they said I qualified to buy a much more expensive car. In my experience, if you pay on time and more than the minimum payment, they automatically up your limit. What made me look at my card limits was I got turned down for a mortgage refinance because I had so much available credit.

By: Chris

Chris — Thu, 27 Aug 2009 01:51:05 +0000

I have a question as I was planning on calling my credit cards’ soon to increase credit limits. I was just reading a quick statement in some retirement guide and it stated that creditors can look at your total credit and think that you have too much available. However the article failed to mention the increase in your credit score (which is important to me). Is is possible to have “too” much of a credit limit?

I never really thought this to be an issue unless you are actually using all your credit limit not that you just have it available (though it could be used and I could see the problem there). So essentially my question is focused on if this is possible (to have too much) and if so how much is too much?

I only have $20,000 and my wife is around the same. I was planning on doing this anyways since I have a long way to go in comparison with others but just curious your thoughts on this.

Great article Jim! Very clear and helpful as I’m preparing to do this!

By: eric

eric — Wed, 26 Aug 2009 18:08:31 +0000

The same thing happens with my mtvU card too.

It’s easy to do every couple of months.

By: Julio

Julio — Wed, 26 Aug 2009 17:13:18 +0000

I don’t know how effective it would be in this current market, but I’ve gotten the biggest increases over the years by opening a second card with the same bank and then consolidating accounts. Using this method I’ve been able to double or triple my credit limits with little effort. Of course if you are looking to avoid the credit hit, then you may not want to use this method, but if you can afford the dip in score, I don’t know of a better way to turn two 10k lines into one 20k.

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Wed, 26 Aug 2009 16:05:53 +0000

It might be necessary to work to increase credit limits just to cover the ground lost to banks cutting limits.

Sounds almost tongue-in-cheek, but it’s really the way it is out there right now.

By: Ann-Marie

Ann-Marie — Wed, 26 Aug 2009 14:11:04 +0000

Great tips Jim! One caveat I would add to requesting a credit limit increase online is that online systems tend to use some sort of algorithm to determine if you’re eligible for a credit limit increase. And with any algorithm comes limitations.

This just happened to me this month when I asked Chase for a credit limit increase online. Even though I have excellent credit and a flawless payment history, there was something on my credit report that made the system turn me down. But when I called to follow up, the CR was able to grant me the increase. Further proof that computers can’t match a human brain… quite yet! Lesson: If your online request proves fruitless, try phoning your bank and talking to a human being.

By: Miranda

Miranda — Wed, 26 Aug 2009 12:39:08 +0000

A credit limit increase can be very useful. You just have to make sure you continue to observe the rules of responsible use and try to avoid carrying a balance.

By: Adam@RabbitFunds

Adam@RabbitFunds — Wed, 26 Aug 2009 11:55:55 +0000

I have found that asking every several months either online or on the phone usually results in an increase. Then again, you have to maintain a good history with the credit card company. If you call in, I recommend asking for a rate reduction at the same time. So even if you don’t get the credit line increase, you may still walk away with a lower rate.