One of the biggest factors in the calculation of your credit score is the amount of credit you are using versus the amount of credit you have available to you. Increasing the gap between these numbers can raise your credit score by a considerable amount. Getting an increase in your credit limit is not as difficult as you may think. As long as you have been making your payments as promised, there is a good chance that you will be approved for an increase in your credit limit. Here are some of the most effective ways to obtain an increase in your credit limit.
Automatic Adjustments
Companies that issue credit love consumers that make their payments on time, so if you have a good payment record with your credit card company, they may automatically recommend you for a credit limit increase after your account information has been reviewed. When this occurs, the credit card company will generally send you a notice in the mail alerting you that you have qualified for a credit limit increase on your account. Different companies have different procedures when it comes to accepting credit limit increases offered by the company, so follow the instructions in the notice that was sent to you to ensure you are granted the increase.
Making A Credit Limit Increase Request
If you do not want to wait for the credit card company to decide you are ready for a credit limit increase, you can always request one. The easiest way to request a credit limit increase is to call the credit card company and talk to the customer service representative about obtaining an increase. Depending on your current credit score, your current expenses and your repayment history, the company will make a determination as to whether extending your credit limit is in their best interests.
If you have online access to your credit card account, you may be able to request a credit limit increase over the internet using the features on the card issuer’s website. Some issuers will ask you what you would like your credit limit to be, while some others will let you know what credit limit you have been approved for based on their formulas. It is important to remember that a customer-requested credit limit increase may require a hard credit inquiry on you that will temporarily drop your credit score, so make your requests only when necessary.