How Often Should You Request A Credit Limit Increase? (2024)

Credit card limits can vary greatly. According to the credit bureau Equifax, the average credit limit for cards was $5,049 as of March 2022, while the credit cards which are designed for people with low incomes may have an average credit limit of $849. If you use a credit card to help you manage your finances, you may find that your credit card limit doesn’t always work for you.

Your credit card company will base your credit limit on a variety of factors. It will look at your income and outgoings, your credit history and how responsible you are as a credit card owner. The bank will also pay attention to your current limits on other cards. However, just because you have been given a credit card limit by an issuer, it doesn’t mean that this figure is necessarily set in stone.

If you haven’t missed any payments, you have paid off your other credit cards or you have had an increase in income, you could ask your credit card company to increase your credit limit. You can make a request to increase your credit card limit through your user portal or by calling your credit card’s customer service team. If you are using your user portal, double check all of your information as you may have received a wage increase or a drop in housing payments since you last input any information.

Another action to make before you apply for a credit limit increase is to take a look at your credit score. You can check it for free with Experian, Equifax and TransUnion from AnnualCreditReport.com. This will give you the chance to take steps to increase your score or ask for any errors to be removed. The law states that errors need to be rectified in a timely fashion, so if there are any inaccuracies, you shouldn’t have to wait long before your credit score is improved.

If you have just opened the account, you should avoid asking for a credit limit increase straight away. Companies such as American Express state you should wait six months after opening an account before you put in a request. If you have multiple cards with the company, you can only ask for an increase on one card at a time every six months. You can’t ask for a raise on all of them at once.

While it doesn’t happen every time, you should note that when you put in a request to raise your credit card limit, it could mean your credit score takes a temporary dip as a bank may carry out a hard pull with the credit bureaus before it offers you a higher limit. Equifax said that hard inquiries will show when you’ve applied for new credit and may stay on your credit report for two years, but should only impact your credit score for a year.

When Will My Credit Limit Increase?

Sometimes you don’t have to ask for an increase, as once you have had your card for six or 12 months you might find that your credit limit increases automatically. Credit card issuers will track your account usage and creditworthiness and may increase your credit card limit without you asking. So pay close attention to your credit card statements and look out for notifications.

If you haven’t been offered an automatic increase, you can still ask for your limit to be raised. You will find out if your request has been approved by email, an online notification or letter. You may be told straight away if you have been approved for an increase, but you may have to wait up to 30 days for an answer.

There are lots of reasons why your request may be rejected. Your credit score could be too low, you might have made too many late payments, the credit card company couldn’t verify your income or you have made too many recent applications for credit. However, you won’t be left in the dark as to why your application was rejected. If your request is denied, your lender will send you a correspondence to say why you were turned down.

You should wait six months before you apply again. But you can use this time to help increase your credit score. You can take practical steps such as paying off your credit cards or making payments on time, but you can also make sure all your hard work is noticed by using the free service from Experian called Experian Boost. When you pay your streaming services, utilities and rent on time it doesn’t usually increase your credit score, but if you register with Experian Boost and pay your bills using your bank or credit card, it can go towards increasing your credit score. Experian reported that the average Experian Boost user can raise their FICO Score by 13 points.

Until you are able to get a credit limit increase, see if you can better utilize the credit that you do have. For example, if you have multiple cards, you might be able to move the credit line from one card to another. This of course means that you will not have as much credit on the other card anymore, but if your issuer has divided up your credit across multiple cards, you might be able to maximize your reward-earning capability by using one card. You could speak to the customer service team of your bank to see what their rules are with regards to transferring credit and what possibilities are available to you.

However, there could be another way to achieve your goals. Instead of asking for a credit limit increase, you could see if another card could be a better fit. Many credit card companies have introductory offers that include a welcome bonus and no annual fee for a set period. This could help you manage your finances if you know that you have some large purchases coming up. Or if you are planning a vacation, you might find that a credit card that specializes in travel rewards such as hotel stays or airline miles could be more in-line with your needs.