There are several reasons you might want to ask your credit card issuer to increase your credit limit. One is that you may be planning some travel or major purchases that could cause you to bump up against your current limit. Another is that you might hope to raise your credit score by improving your credit utilization ratio. Thats the amount of debt you have outstanding at any given point compared with the amount of credit you have available to you. A higher credit limit can mean a higher score—as long as you dont go out and charge more than you normally would.
But its entirely up to the lender whether to grant you that increase. Heres what you need to know about how lenders make the decision to approve a credit limit increase or deny one.
Having a higher credit limit can be beneficial in many ways. It allows you to make larger purchases without maxing out your card, improves your credit utilization ratio, and gives you more borrowing power in case of an emergency So when you’ve been a responsible credit card holder but still haven’t seen your limit go up, it can be frustrating
There are several potential reasons why your credit limit hasn’t increased
You Haven’t Asked for One
Many issuers won’t proactively raise your limit – you have to request it. They want to be sure you actually want and need more credit before they extend it to you.
You can request a credit limit increase by contacting your issuer directly. Many have an option to submit the request online or over the phone. If you meet their criteria, your limit can often be raised immediately.
So if you haven’t explicitly asked for more credit that’s likely why your limit hasn’t budged. Submit a request and there’s a good chance it’ll get approved.
It Hasn’t Been Long Enough
Most issuers recommend waiting at least 6 months between requests for credit limit increases. This shows you can responsibly manage your existing credit before taking on more.
Trying to get multiple increases in a short period of time looks risky to lenders. So if you just got a bump up, you’ll probably need to wait a bit before your next request will be approved.
Be patient and continue demonstrating you’re a trustworthy borrower. In time, you should be able to get periodic increases to grow your limit.
Your Credit Score Is Too Low
Your credit score is a major factor issuers consider when reviewing requests for more credit. If your score falls below a certain threshold, they’re less likely to approve an increase.
Each lender has their own minimum credit score requirement. But in most cases, you’ll need a score of at least 660 to be considered for a higher limit. Ideal scores are 690 and above.
If your credit score needs work, focus on improving it before applying for more credit. Pay all bills on time, lower credit utilization, and correct any errors on your credit reports. Once your score increases, try requesting a limit increase again.
Your Income Is Too Low
Lenders want to see that your income can reasonably support your credit limit. If your income appears too low relative to the limit you’re requesting, your request may get denied.
For example, if you only make $25,000 per year, an issuer probably won’t increase your limit to $15,000. That level of credit would likely be beyond your means.
Before applying, make sure your income level justifies the credit limit increase you’re seeking. You may need to start with smaller increases first.
You Have a Short Credit History
The length of your credit history is also a factor in credit limit increase decisions. If you only recently got your first credit card, issuers may want to see how you handle it before increasing your limit.
Having at least 3-5 years of credit history with responsible use is ideal when applying for more credit. If your history is short, be patient and focus on building it through on-time payments.
You Have High Balances
Issuers don’t want to raise your limit if your existing balances and spending patterns suggest you can’t afford more credit. High balances and maxing out your cards are red flags.
To improve your chances, pay your balances down before requesting more credit. Try to keep your utilization below 30%, and even lower if possible. Demonstrating you’re not over-reliant on your current credit will help justify an increase.
You Opened Too Many New Accounts
When you open multiple new credit card accounts in a short period, issuers see that as a risk factor. Too many new accounts may indicate you’re overextending yourself with credit.
Try to limit new applications to one every six months or less. Having moderate, responsible use of new credit will better position you for credit limit increases.
You Have Past Issues on Your Credit History
Defaulting on accounts, making late payments, having accounts sent to collections – these types of negative marks can put limits on your borrowing power.
Past credit mistakes can stay on your reports for up to 7 years. As the years pass and your reports improve, your chances of getting more credit also go up.
Continue demonstrating responsible usage and your limit should eventually increase.
You Recently Got a Mortgage or Other Loan
When you take out a large, new loan – like a mortgage, auto loan, or student loan – it can temporarily reduce your chances of getting more credit. Lenders see the new obligation and may want to see how it impacts your finances first.
Give it some time for the new loan to age and show you can manage the payments responsibly. As you demonstrate stability, your credit limit increase approval odds should improve.
What to Do Next
If your credit limit increase request gets denied or your limit just won’t budge, take steps to strengthen your credit profile. Here are some tips:
- Pay all bills on time – set up autopay if needed
- Pay down balances to decrease credit utilization
- Limit new credit applications
- Allow 6 months or more between increase requests
- Build credit history with responsible card use over time
- Raise your credit score by correcting report errors
- Increase income to support higher limits
Meeting these credit health goals will demonstrate to issuers that you can handle more. With a little patience and diligent effort, your limit should eventually move up. Just stay committed to improving your credit worthiness.
The Bottom Line
Having your credit limit increase denied or stagnate can be puzzling and frustrating. But in most cases, there are specific reasons behind the issuer’s decision. By identifying and addressing those factors, you can get yourself back on track for approval. With some time and attention to your credit profile, you should be able to get the higher limit you need.
Why Would You Be Denied a Credit Limit Increase?
You could be denied a credit limit increase for many reasons, such as a history of late payments, too low of a credit score, too little credit history, too many recent applications, or an inadequate verifiable income. If you were already approved for a credit limit increase recently, that could be another reason.
Does Asking for a Credit Limit Increase Affect Your Credit Score?
That can depend on your credit card issuer. If it does whats known as a soft credit check, it will not affect your credit score in any way. If the company makes a hard credit check, that may lower your score a bit, but usually only temporarily.
THIS is Why Your Credit Card Hasn’t Received a Credit Limit INCREASE
FAQ
Why hasn’t my credit card limit increase?
Your lender may not consider a raise limit if your account has not been open long enough, or if you have gotten a raise in the past few months.
Why won t credit one increase my limit?
Credit card issuers will look at certain criteria when considering your eligibility for a credit limit increase. These mainly include signs of responsible account behavior, like making on-time payments, making more than the minimum monthly payment, and paying off your balance in full.
How long does it take to get a credit limit increase?
Why my credit is not increasing?
Oldest account, lack of late payments, and low utilization are heavy hitters. If you have no late payments it must be total age of credit and utilization. Give it time and pay down balances.