Monday, 24 February 2020

How To Increase Your Credit Limit On Your Credit Card (5 Step)

Increase Your Credit Limit On Your Credit Card

In today's article, I'm going to teach you how you can increase your credit limit on your credit card. I'm going to give you all the details that you need in this article for you to increase your credit limit. There are a couple benefits to do this, 



Credit Limit Increases Can Help Improve Your Credit Score Or Your Credit Utilization.

The reason why you want to increase your credit limit is maybe you just applied for your first starter card and you have a limit of like $500, I couldn't even buy the newest iPhone if I wanted to with a credit limit of $500, some people just get smaller credit limits and it always makes sense to actually improve that so you can spend more money, but remember, only spend money that you have, do not carry debt, that's when you lose the game, make sure you pay off the statement balance in full. 

Now, the only other reason I can think of why someone wants a credit limit increase is for the Flex.

Let's get started on how to get your credit limit increase


1. Have A Good Credit Score

This seems to be the answer to a lot of the problems in the credit card industry, if you have a good credit score, most of the time that fixes everything and that actually helps you out with having a higher credit limit as well. If you have a good credit score, you're telling these credit card issuers and these companies out there that hey, I know how to pay off my credit cards on time, I am not someone who's going to run off with a month, I'm not going to go crazy with it and I have good self-control.


  • If you have a good credit score that is what you're telling these companies and when you're doing that you're actually building trust with these banks, with these credit card issuers, when you build that trust, it's a lot easier for them to lend you higher amounts of money in hopes that you're going to pay off the credit cards in full back on time.

Read: How To Get An 800 Credit Scores In 45 Days For 2020

Let's say my name is John, and I have a 475 credit score and I am known to have a ton of derogatory marks, a ton of late payments on my credit cards and I'm not someone who has good self-control and I probably deserve to be in the Dave Ramsey group as well, if I request a higher credit limit increase on my cards, there's a good chance that I'm not going to get it. And it's because I'm already telling these banks hmmm, I don't deserve it, I'm a high-risk level if I get a higher credit limit increase, I'm probably going to add on to the debt that I already have. So first thing first, make sure you have a good credit score. 


If you're someone who already has a bad credit score, a lot of these methods I'm going to tell you about it's going to be a little bit harder to achieve, but even if you do not have the best score out there, hear me out, read those things because it'll still help you out.


2. Apply For the Right Cards

If you apply for a beginner card with discover it's not going to be a surprise if you only get a $1,000 credit limit on that card but, if you apply for a card like the Chase Sapphire Reserve, those cards are known to give out huge credit limit and it's because for that card specifically a $10,000 credit limit is the minimum on that card, so if you apply for the Chase Sapphire reserve and you get accepted, you're not going to get anything less than $10,000, it's $10,000 or more, so shoot your shot, shoot higher, if you're trying to get a higher credit limit, look into the cards that offer a higher credit limit. 


3. Business Credit Card Offer Higher Credit limits

Business credit card is seriously the go, they offer so much and they do give you a ton of credit limit power, for example, the Chase Sapphire Preferred or the chase ink business preferred, these are two cards that I both owned previously in the past, I had the same score, everything was the same, I just applied for these two different cards on the personal version of the chase sapphire preferred, I had a limit of $2,000 to $5,000 but, when I applied for the chase ink business preferred, I actually had gotten over a $15,000 to a $20,000 credit limit. So it's not surprising if you get a business card, the more you pay it off, the more history you add on to that card the higher you're going to get a credit limit. Every time I applied for future business cards within the chase, that card credit limit had a higher limit every time. 


4. Manually Request For A higher Credit Limit

When I'm going for specific credit cards it depends on what my goals are, do I want to get more points? Do I want to get more cashback? Do I want to go for the status benefits, what am I really looking for? There are some people out there who just want a card that's going to have a higher credit limit, now, a company that actually gives very generous credit limit increases is going to be American Express. 

American Express is known to triple your credit limit, so if you have a $10,000 credit limit, they will actually gladly triple that into a $30,000 limit. You can do this with other issuers too but, this is really a data point that has been pulled out of American Express, they've been able to do it it's still going on, so if you want to have a high credit limit make sure you have a couple cards with American Express, have a good history with it, pay off your credit cards, have a good score, and they will increase that credit score


How Do I Manually Apply For A Credit Limit increase?

Applying or requestion a credit limit increase isn't really anything abnormal. If you have credit cards this is something you can do, call the customer support rep or even better go to the website of your credit americanexpress.com

americanexpress

There's usually going to be a tab where it says to increase your credit limit, if you are trying to get a credit limit increase you can always ask the rep, hey, if I request a credit limit increase in this card, will it affect me, will it affect my credit, is it going to be a soft pole, they can give you a straightforward answer on that, the easiest way I do it is just by chatting with them just because they're there.


You don't have to wait on the phone in case they're really busy and that's just one of the best ways you can go about increasing your limit.



Few things that I want to mention is that you need to know why you want to get a credit limit increase. If you're someone who wants to get a credit limit increase just to have more flexibility, that makes sense, go ahead and do that, but if you're someone who's trying to take advantage of promotional offers in the hopes that you're going to pay off your credit card, I think that's a risky move. I really don't recommend a lot of people to go for a credit limit increases for that reason, I just see a lot of people going into debt and that's the last thing I want from you.


Conclusion

Here's some of the best practices to know if you are trying to get a credit limit increase, how long have you've been with that credit card issuers, if you've been with chaser or American express for two weeks, does it really make sense to go for that credit limit increase right now, probably not. If I've held a relationship with them for maybe 3 months even 6 months which is the most ideal, then I know hey, there's a good chance I will get that credit limit increase, if I don't do it manually, they will probably give it to you automatically.

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