According to data from Cornerstone Advisors, since Apple Card debut in 2019, more than 3.1 million people have opened an account. It offers the convenience of a cashback credit card with the bonus of special financing for company products.
If you have an Apple card, you might want to raise your credit limit — especially since the company is set to debut new and improved products this year. US News My Money explains how to request an increase and how to qualify.
How To Request A Credit Increase On Your Apple Card
Whether it’s an Apple card or regular credit card, the creditor will first determine your debt-to-income ratio. This figure lets them gauge your risk as a borrower, which is reflected in the credit limit they offer.
Here’s how to request a credit limit raise on your Apple Card:
- Open your phone’s Wallet app
- Tap the Apple Card
- Select “More”
- Tap the Message icon to send your request
Alternatively, you can select Credit Details to view your current limit. After you file a request, a customer service agent might contact you to ask qualifying questions. They will also perform another hard credit check.
How To Qualify For A Higher Apple Card Credit Limit
Typically, lenders use the same criteria for credit limit requests as they do for opening a new account. That’s because they want to know you can pay any balance you charge to the card. If you have a better debt-to-income ratio and credit rating since you first applied for an Apple Card, you have a better chance of approval.
Besides that, Goldman Sachs — the entity that issues Apple Cards — will check your payment history. Because of this, it may take the issuer six months or more to collect sufficient details and consider increasing your limit.
What If Your Request Is Rejected?
Unfortunately, there’s no guarantee that Goldman Sachs will approve your request for a higher credit limit, even if your situation is better than before. Not only that, but lenders are often less willing to approve anything during recessions. Since the economy nosedived last year due to the pandemic, many card providers have restricted credit limits — or even closed accounts — to avoid a wave of defaults.
But aside from that, the rejection is probably related to your personal finances or reflective of your credit standing, debt, or income. You should have checked your credit score before seeking a higher limit, but if you didn’t, now is the time to do so. Doing so will help you understand the lender’s decision and recognize areas of improvement.
In addition, you might catch errors or other discrepancies affecting your score that you can dispute. If your record is accurate, you might just need to focus on lowering your debt-to-income ratio.
One way to boost your debt-to-income ratio is by applying for another credit card. If your credit could use some work, you might consider a secured card. As long as you use it responsibly, a new credit card is a good way to enjoy a higher credit limit.
However, before you do this, make sure you weigh the pros and cons of getting a new card. After that, make sure you do your due diligence to find the best card for your needs. Compare interest rates, offers, introductory periods, and fees. The last thing you want is to worsen your financial situation by opening another credit card.
Besides lowering your debt-to-income ratio, Jason Krueger, a certified financial planner at Ameriprise Financial, suggests focusing on on-time payments.
“The largest component of an individual’s FICO score is their payment history,” he told US News My Money. “So the most important thing anyone can do is to continue to make their payments on time.”
Build Your Credit And Apply Again Later
You never know when the need for a credit limit will arise. You might receive a surprise medical bill, need to replace your dishwasher, or encounter any number of surprise expenses. When that happens, you can’t always afford to wait for your score to improve.
So before that happens, make an effort to develop good financial habits to build your credit and maintain your score. Doing so will improve your chances of approval and reduce the stress of scrambling for a loan.
- Luthi, Ben. “How to Get a Credit Limit Increase With an Apple Card.” U.S. News & World Report, U.S. News & World Report, 19 Jan. 2021, creditcards.usnews.com/articles/how-to-get-a-credit-limit-increase-with-an-apple-card.