How To Increase Your Credit Limit

There are many reasons why you would want to raise the credit limit on your current credit card. But before you move forward, you should consider your reasoning. 

Do you want to buy an expensive item or indulge in something else you don’t have the money for? If that’s the case, you should reconsider pursuing an extended line of credit because it may result in you falling into a cycle of debt.

Not only that, if you want to raise your credit limit, you must first show the lender you can manage your current credit card responsibly. If you have poor credit or a history of late or missed payments, it’s unlikely the lender will approve your request. 

Here’s what you should know about raising your credit limit before you do it.

What Is A Credit Limit?

A credit limit is a cap on the amount of borrowed money you can spend when you have a credit card. Depending on your credit record and the card you have, credit limits can vary from a few hundred dollars to several thousand.

A higher credit limit is beneficial because it offers more buying power, which can be advantageous if an unexpected expense arises.

How To Raise Your Credit Limit

Wait For The Automatic Annual Increase

Most lenders provide automatic annual increases for individuals who use their cards responsibly. If you are diligent about paying your monthly statements on time and in full, the lender will probably increase your credit limit. But if you’re unsure, contact your bank.

Automatic annual increases do not have extra fees, and they don’t affect other charges, such as your annual fee. 

Apply For A New Credit Card

If you don’t want to wait a year for your lender to raise your limit, consider opening a new credit card with a better limit. Having multiple cards means you also have a much higher credit limit. You can get another card through your current ender or seek one from another credit card company. 

If you have a history of responsible credit card use, you should have no problem getting approved for another.

Ask Your Lener To Raise Your Current Credit Limit

It never hurts to ask your lender to raise the credit limit on your current card. Contact customer service over the phone or online, or visit your lender in person. They might have the final decision, but if you approach them with a positive credit history, credit score, responsible card use, timely bill pay, and other factors, you will have a better chance of receiving approval.

Show Your Lender You Are Responsible

Lenders will not offer higher credit limits to high-risk customers. Before applying for an increase, pay off any outstanding debts, make your monthly payments early, and make more than the minimum amount. These actions will show the lender they can trust you to repay what you borrow.

Show Proof Of An Income Increase

Lenders typically give higher-earning borrowers higher lines of credit. So if you experienced a change in your income for the better — like a raise, bonus, etc. — tell your lender. You may need to offer evidence, so make sure you have a paystub or similar form of proof on hand. 

Make An Investment With Your Bank

Lenders are more willing to increase credit limits for customers who invest with them, such as opening an investment account. If you have multiple bank accounts, it would also be best to pool the funds from all of them into one account, so the lender has a clearer idea of your financial health.

Raise Your Credit Score

The credit limit that a lender offers you is strongly contingent on your credit score. If you have good credit, the lender knows it can trust you to repay what you borrow. As a result, the lender will be more willing to offer a higher credit score.

If you have poor credit, you should work on improving it before you approach your lender. Here are a few strategies:


  • Pay your monthly bills on time and in full (if possible)
  • Keep your debt-to-income ratio low
  • Keep your spending well below your credit limit
  • Don’t apply for more loans
  • Lower your credit utilization ratio


  • Creditmantri. “How to Increase the Credit Limit on My Card?” CreditMantri, CreditMnatriCreditmantri, 6 Aug. 2020,
Ian Schindler