Getting a Higher Credit Limit: How to Get a Credit Limit Raise on Your Credit Card More Easily

June 19th, 2010

If you know you need to apply for a higher credit limit on your credit card, your bank may treat your application similar to a brand new application.

Getting a credit limit raise isn’t necessarily difficult, but there are some things your bank will look for before they give you an approval.

1.9% p.a. for 9 months

Affordability

When a bank assesses whether a customer should be approved for any kind of credit limit raise, they’ll check whether your income is sufficient to support the increase in payments if you happen to draw your card up to the new limit.

You may need to show your bank evidence of your income, in the form of pay slips or tax returns to prove that you have the financial capacity to repay the amount you’re applying to have increased.

Past History

Of course the bank will view your credit report to see what your conduct has been like with other financial responsibilities you have. However, they’ll also look back at how you’ve handled your existing credit card.

Before they are likely to approve a higher credit limit, they want to be sure you’re able to handle the limit you already have.

Current Limit

If you’re the type of customer who sometimes spends enough to take your balance over your credit limit, your bank may not consider your request for a credit limit raise to be a good idea.

You can help avoid this by spending a little time paying your balance down a little so it’s not so close to the current limit. Then make an effort not to draw it up so close to the available limit in future.

Pay Your Bills on Time

If you have managed to be late once or twice on your credit card payments, your bank might overlook this as an over-sight on your behalf. However, if you’ve made a habit of consistently being late with your payments, your chances of being approved for a higher credit card limit are slim.

Try changing the way you make your payments. Instead of paying one larger sum each month, perhaps pay a smaller amount each time you get paid that adds up to a little more than the minimum due. The bank will notice your improved conduct and you’ll find it’s much easier to keep up with your bills this way.