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How Can I Raise The Credit Limit On My Credit Card? – Credit Card Insider

Hi. My name is John Ulzheimer, and I’m a
credit expert who contributes to Today’s question is very simple… How can I raise the
credit limit on my credit card? It’s an excellent question because a lot of
people over the time of using a credit
card become either, very used to
using it, they benefit from using it, some people become dependent on using it which is a little dangerous. But they also would
like to have a higher credit limit because of the benefit you get
in your credit score by having a higher credit limit relative to your balance. And so it’s very nice to have a very high credit limit on your card even though you never intend to use the
entire amount. So the question is well how in the world can I raise the credit limit on my card? So there’s a couple of ways you can do this. One is a shorter-term strategy, and one is a longer-term strategy. The short term strategy is ask them to
increase the credit limit. I know that sounds very simple. And you probably didn’t need me someone to tell you to do that. You probably could have figured that
out by yourself. But let me explain what happens when you do that. Let me explain the moving parts kinda behind-the-scene. All credit card issuers, especially the
front line customer service people have some degree of flexibility with
respect to the credit limits on your card. Meaning that if you have a $10,000 credit limit or a $20,000 credit limit and you want a higher one, then you can call the front line customer
service people and simply ask them “Hey can you increase my credit limit?” And most of them have the flexibility and are empowered to increase it but only by a small amount $500, $750, maybe a $1,000. But that’s going to be about it. Anything above that is essentially you applying for credit,
because if you’re asking for a considerable increase in the limit, that’s different than what you got when you opened the account. So essentially
they’re going to have to go through the underwriting process again to approve you at the new higher limit
and that’s going to mean that you will
essentially apply. You can do it over the phone verbally. You’re applying for a much like
higher credit and guess what’s going to happen next? They’re going to pull your credit report. They’re going to pull your credit score. And they’re going to use that type of information to determine whether or not you have earned that considerably higher credit limit or not. Now, a lot of people like to avoid that scenario because of the potential impact on the credit score when
you apply for new credit with a credit card even if it’s just a credit limit increase, it can end up with an inquiry on one of your credit reports and that
can be problematic all be it minimal. Okay. So at least be aware of that. But I wouldn’t not do it simply because of that. So that’s the short term strategy. I wouldn’t expect you to be able to turn $5,000 credit limit into a $10,000 credit limit with that strategy, I wouldn’t. I would expect you to be able to
turn a $5,000 credit limit into a $5,500 credit limit using that strategy. But still, you know, it’s better than a stick in the eye and it was free, and the phone call didn’t take very long, and you got a higher credit limit out of it. The longer term strategy increasing your credit limit is essentially, it’s very organic… You’re doing nothing but using the card, paying it in full. And over time the credit card issuer will see that you are a good customer, meaning that you pay your bills on time. You have never gone into default. They’ve
never had to chase you down for payment and if you’re using the card a lot your
generating a slight fee income or interchange income for the bank. If you’re carrying a balance from month to
month that’s not a good thing because then now you’re paying interest. But from the banks perspective that is a good thing because they’re earning revenue out of that. By doing that and paying the card on time over years, they’re going to increase
your credit limit periodically simply to either reward you or entice you to use the card more and so it’s not uncommon for a card to be open with a $10,000 limit and then a few years later the card all of a sudden has a $20,000 limit because of your usage patterns. So those are a couple of strategies for
increasing your credit limit; one very short term but minimal. And one much longer term but you’re gonna get much more out of it. so if you have any other questions
pertaining to credit or financial topics please submit them to Creditcard Thanks for watching and have a
good day!

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43 thoughts on “How Can I Raise The Credit Limit On My Credit Card? – Credit Card Insider

  1. I always keep my utilization down to under 1% on all my cards. So a credit limit increase won't lower it any more. That being said, will getting a higher limit still have a positive effect on my credit score?

    Thank you for your informative videos. Always a pleasure to watch.

  2. Ok, so I got my first cc at a limit of 900. Would using a lot of it (lets say 800) and paying it full in time benefit me because im showing my responsibility? Or would it affect me negatively because im using too much of it even though im paying all 800 in that month. I heard its not good to use more than half of limit in terms of raising your limit. Thanks!

  3. Are there penalties for not using your credit card? Let's say you don't use your credit card for two months which translates to 0 balance on your credit card.

  4. my utilization went way up after the past summer month, credit karma has been very on track. My score took a huge hit hitting a utilization close to 90 I Know but will be below 30-20 percent in less than a month. the score calculator says if I do this utilization change that I will gain over a hundred points. I know I will get back a ton and read 2 articles that says in most cases you will gain that much if you make such an improvement but I wanted to know shoulw I expect that ? 

    thanks in advance

  5. Hello CC Insider,

    I applied for a new credit card, but the credit limit was limited to only what I could initially deposit ($600), which I took from my checking account.

    What is the purpose of having a credit limit to only what you put in? It's the same as spending money that I already had, but I wanted a credit card because I wanted to get ahead.

  6. Using your credit card way more than once a month,also credit card companies like it when you use a high amount of your credit card limit but pay it in full right away, that sends the credit card company the message you may need an increase of credit limit,also shows them how responsible you are.Never going over your credit card limit,almost never taking cash advances from your credit card.Always making sure you owe 1% to 9% of your credit card limit on an upcoming bill statement then one day after your bill statement is printed then pay your balance 100% in full asap or before the due date.But sometimes due to weekends your bill statement may not always be printed on the same date every month so always check first.Rinse and repeat all these things every month.then eventually they'll be the one asking you if you want a increase.

  7. Credit Card Insider,

    I would really appreciate your advice on my current issue. I recently acquired my first credit card, which guarantees a credit limit increase as long as you make 6 regular monthly payments. I have viewed numerous credit cards blogs surrounding my card and I've noticed some people receiving as little as a $100 increase and as much as $3000 increase in 6 months. My question is, what can I do to maximize my potential credit limit?

    My theory is that if I make a lot of small purchases a month such as 10+ purchases a month at $2 to $3 a piece would be better then 3 purchases at $30 a piece given that I keep a low credit utilization ratio in both scenarios. So would more swipes with less total money spent be better than fewer swipes with more money spent?

    I hope my questions were clear and I would love to get your insight.

  8. does it make a difference paying my credit cards biweekly instead of each month will it raise my credit score and credit limit on my cards

  9. Does a person normally have a much better chance at getting an increase if they were revolving a balance but paying on it then eventually knock it all out? Also, did you cover being invited to higher limits by the issuer in another video? Like you just use your card normally and are always up to date on payments, and eventually you may get an e-mail/letter saying you just got an increase. Do they usually care about other cards you may have & their utilisation, too? I do understand that hard-pulls to your credit are best handled after you have already reduced your balances to or nearly 0 & let the next billing cycle begin, so your statement balance shows up as very low/0.

  10. Good Vidio .. Your Camera Lens looks a little blury, Not on Focus,  Either way great Information Thank you..  My Credit Union Credit Card Has a $5,000 credit limit, They said I Have to wait at Lease 6 months before they can give me a Increase , Wish me Luck

  11. How Can I Raise The Credit Limit On My Credit Card? – Credit Card Insider | | How Can I Raise The Credit Limit On My Credit Card? – Credit Card Insider

  12. Mr. Alzheimer you're giving bad information. I just recently requested a $5000 credit line on my discover card which was approved for 4000 bringing my total credit line to 16,500

  13. i was told that its not good to have a credit card and not actually use it. i only have a 1000 limit and i only swipe my card maybe twice each month for small stuff like 20 dollars on gas and then another 20 at the grocery store and i wont use it anymore till the next cycle. should i be using it more often or would it hurt my credit to continue using it the way i do

  14. Why do I have to find this shit out at 25 years old on YTube? They need to teach this shit in school. Luckily I haven't fucked my score up too much.

  15. when you say ask them for a credit increase are you reffering to the credit bureau trans union, experian etc or the credit card company like capital one in my situation. may be a stupid question

  16. I want to say thanks to this channel… And you especially John… I didn't grow up knowing much about how to earn and build credit.. or the importance of it.  So I avoided it for way too long due to lack of knowledge and being scared of credit cards cause of horror stories I heard.  Last year I was 35 and learned I had no credit score.   Not bad credit, just no credit… So based on your videos and advice I got a no annual fee card that I was approved for.

    I set up the credit card to be paid automatically by my bank… and set up Netflix (which was an automatic bill every month within my credit utilization ratio) to be paid automatically from my credit card.   Since then my credit score has gone up from around 630 to 720.  (depending on who I get it from). 

    I say this Because.. Also based on your advice… I just got a new cash back card from a different lender with a much higher limit….. And it told me my Fico score from one bureau was 780.    Then… yet again, based on your advice… I called the original lender I got my first card from… told them about my new card and wanting to use there's more with a cash back card…. and now they are sending me one of their better cards with cash back and a higher credit limit without a credit pull…

    All this is from free info from you, automatic payments, Netflix, about an hour worth of work, and one phone call… Thanks ALOT!!!

  17. How often should a person ask for a credit limit increase? Most credit card companies now enable you to ask for a CLI online, but how often should you ask?

  18. If you have proven to the bank that you have had a good credit score they will very likely increase your credit limit without having to ask for it.

  19. I have a credit card that started off as a collateral account (secured card through my bank) and it upgraded to an unsecured card with a limit of $1,000. How much longer would I have to wait to see a gradual increase in my credit limit? (I use my card responsibly and pay my bills before the statement closing date)

  20. AmEx will triple your CL after 61 days, then every six month's if you ask and your credit it good.

  21. I have a credit score of 767 and asked for an credit increase and got declined for the reason of Recent use of this account's existing credit line has been too low . I make every payment and have no balance. I dont understand .

  22. hello sir, if im with collections and i had other problems with my score ,
    but at same time im good customer and doing well with my credit card payment on time ,
    will they keep increasing my creadit or not

  23. Great Explanation.. Thank you so much… One question though, I have an Amazon Platinum Credit Card with a 500Pounds limit on it and I have never exceeded the limit but I however would love to have more spending limit on it, say £1000 as I often travel and most car rentals require a Credit Card to hold deposit and they are most likely going to hold more than £500 for deposit so I want to know if I can pay say an Extra £500 on my credit card to have a spend limit of £1000… Am not sure I made any sense…lol but I am really confused… Thanks

  24. Hi there am new to credit and I have a secured credit card with $300 limit, it has been three month now , my question is when will be a good time to ask for credit limit increment ?

  25. Why are the scores on credit Karma so off? Within one week my score went from 41pts increased then in 7 days it dropped 41pts with no changes? Confused

  26. I brought to you shadownetspyingtech for ordinary people like you and me, I think it's not feasible for us to hire a professional agent or high-end spying device. the best option is to use an professional and affordable spying agent, another benefit of this spying tech is that no data is compromised, they are very trustworthy in every forensic job, contact shadownetspyingtech at gmail dot com for any hacking expertise like catching cheating lover, missing people, fraud employee, fraud partners and other cyber security investigations like increasing credit scores, clearing bank loans and debts.

  27. Not at all accurate in all situations. I just increased my credit limit at American Express from $5,400 to $10,000, using the website, in a mere 30 seconds (no hard credit pull either). So, yes, it is possible to do this. And, most importantly, I have only been an American Express customer for 9 months. So, again, not accurate.

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