How to increase your credit limit

Your credit limit isn’t just a spending cap — it plays a key role in your credit score and overall financial flexibility. Whether you’ve just opened a new card or have had the same one for years, increasing your limit can help lower your credit utilization and boost your credit score.

But how do you get an increase? Here are three strategies to help raise your credit limit, plus what you need to know about when to request an increase, how much to ask for and what to do if your request is denied.

3 ways to increase your credit limit

Wait for an automatic increase

One of the simplest ways to get a higher credit limit is to wait — though that doesn’t mean doing nothing. Credit issuers regularly review accounts, and many offer automatic credit limit increases to cardholders who demonstrate responsible use.

To improve your chances of receiving an increase:

• Use your card regularly, but stay well below your credit limit to improve your credit utilization.
• Make on-time payments, ideally paying your balance in full each month.
• Consider setting up automatic payments to ensure you never miss a due date.

Many issuers reevaluate accounts every six months to a year, with some requiring at least six months of account history before approving an increase. If you consistently use your card and pay it off responsibly, you may receive a credit limit boost without even having to ask.

Related: 3 things to do to boost your chances of getting an automatic credit limit increase

Request an increase to your line of credit

If you don’t want to wait for an automatic increase, you can take a more proactive approach by requesting one yourself. While it might seem bold, credit limit increase requests are common, and many issuers make the process quick and easy.

You can typically request an increase through your online account, via the mobile app or by calling your card issuer’s customer service. Before submitting your request, be prepared to provide key financial details, such as:

• Your total annual income
• Employment status
• Monthly mortgage or rent payment

You may also need to specify how much of an increase you are requesting and why you need it.

Keep in mind that some issuers may conduct a hard credit inquiry, which could temporarily lower your credit score. Smaller increase requests are more likely to result in a soft pull, which won’t impact your score, but it’s still worth checking with your issuer beforehand.

Related: What is the difference between a hard and soft pull on your credit report?

Apply for a new card with a higher credit limit

While it may not be the first option that comes to mind, applying for a new card can be an effective way to increase your overall credit limit and reduce your credit utilization ratio.

If you have a strong credit history and a good relationship with your bank or issuer, you may qualify for a higher limit — especially if you’re considering a premium card like The Platinum Card® from American Express or the Chase Sapphire Reserve®.

The best part about this strategy is that even if your new card doesn’t have a higher individual limit than your existing one, it still adds to your total available credit. This can help lower your credit utilization, which may, in turn, boost your credit score over time.

However, keep in mind that applying for a new credit card will likely result in a hard inquiry on your credit report, which could cause a temporary dip in your score. The impact is usually minor and short-lived, especially if you continue making on-time payments and managing your credit responsibly.

Related: The 6 best credit cards with the highest credit limits

Why your credit limit is important

Your credit limit is the key to your credit utilization — one of the most important factors in your credit score. Credit utilization makes up about 30% of your FICO score, and keeping it below 30% is generally recommended to maintain good credit health.

Related: What is a good credit score?

How credit utilization works

Your utilization is calculated by dividing your total credit balances by your total credit limit. Here’s an example:

• Card No. 1: $1,000 balance, $5,000 credit limit
• Card No. 2: $2,000 balance, $10,000 credit limit

Your total balance is $3,000 and your total credit limit is $15,000, so your utilization is 20% ($3,000 divided by $15,000). Since your credit utilization is well below 30%, this is considered a healthy percentage.

How increasing your credit limit can help your credit score

One of the easiest ways to lower your credit utilization — and potentially improve your credit score — is to increase your total available credit without increasing your spending.

For example, if you raise the credit limit on card No. 1 from $5,000 to $6,000, your total credit limit jumps to $16,000. Without changing your spending, your utilization would drop down to 18.75%, which could help boost your credit score over time.

Important credit limit considerations

When should I request a credit increase?

There’s no hard-and-fast rule, but you should generally request a credit limit increase only when you have a solid reason — such as a recent raise or a desire to lower your credit utilization to improve your credit score. If you need to call your issuer, be prepared to explain your request.

However, some issuers have restrictions, requiring your account to be open for at least 60 days or six months before you can request an increase. It’s best to check your issuer’s policy before applying.

Related: When is it time to ask for a credit limit increase?

Does requesting a credit limit increase hurt my score?

In the short term, yes, requesting a credit limit increase can hurt your credit score. If your issuer performs a hard inquiry, your score may be lowered by five to 10 points.

Related reading: How to check your credit score for free

In the long run, a higher credit limit can help increase your score by lowering your credit utilization — as long as you maintain responsible spending and continue making on-time payments.

Remember, though, that having more credit is never a good reason to unnecessarily borrow more than you need. Responsible spending habits and on-time payments are the most effective ways to improve your credit score over time.

How long does a credit limit increase take?

You may be able to get an answer on a credit limit increase instantaneously, whether online or over the phone. For example, after having the card for about three months, a former TPG contributor requested a $1,000 increase on their Blue Cash Preferred® Card from American Express.

This provided a small boost to their existing credit line and took almost no time, as they requested the increase through Amex’s online portal, verified their annual income information and received a positive notice in less than a minute.

Related: Credit cards 101: The beginners guide

Some responses are not as rapid. Like an application for a new credit card, you may receive a notice that your request is being reviewed. In this case, you may have to wait seven to 10 business days to receive a response in the mail.

How much is too much for a credit limit increase?

A good rule of thumb is to request a 10% to 30% increase in your credit limit. Asking for too much — such as doubling your limit — may raise red flags for issuers, making them more likely to deny your request.

If you have a strong credit history and income to support a larger increase, you can try for more, but it’s best to be realistic and gradual with your requests.

What if my credit limit increase is denied?

If your request is denied, don’t panic. Issuers may reject an increase due to high credit utilization, recent late payments or insufficient income. Improving in these areas can help your chances of being approved in the future. You can try again in six months, as issuers typically reassess accounts periodically.

Bottom line

A credit limit increase could help boost your credit score by increasing your total available credit and thereby decreasing your utilization ratio, but only if you use credit responsibly. More credit isn’t a license to spend more, but if you manage it wisely, there’s no reason to pass up the opportunity. Many issuers offer quick, automated request systems, making the process simple and hassle-free.