Not Happy With Your Credit Limit? Here Are 4 Ways to Fix It

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A low credit limit is inconvenient, and it may even affect your credit score. Find out what you can do if you’re not happy with your card’s credit limit. [[{“value”:”

When you get a credit card, the card issuer will set a credit limit. This is the maximum amount you can spend, so if it’s too low, it could become a frustrating issue.

You’ll need to carefully manage how much you spend. After all, no one wants to be in a store or restaurant and hear that their card has been declined. Your credit limit even plays a role in your credit score. If you use a large portion of your credit limit, you’ll have high credit utilization, which can cause your score to drop.

If your card’s credit limit is lower than you’d like, here’s what you can do to fix it.

1. Ask the card issuer to increase it

Credit card companies will sometimes bump up your credit limit automatically. You can also request a credit limit increase yourself.

Many card issuers include an option to do this online through your credit card account. Or, you can always call your card issuer at the number on the back of your card. You may want to call if you’d like to talk to someone directly about your situation and let them know why you need a higher credit limit.

You’re more likely to be approved for more credit if you’ve always paid the bill on time and you’ve had the card for at least six to 12 months. That’s just a recommended timeframe; I’ve heard about people getting a credit limit increase immediately after opening their cards. It’s less likely, but it can happen.

2. Make sure your income is correct and up to date with your card issuer

Your income plays an important role in your credit limit. If you make more money, card issuers will trust you with more credit.

This is why you should keep your income updated with your card issuer, especially if it has been a while since you applied for your card. If you were making $50,000 per year when you applied for your card, but now you’re making $60,000, make sure your card issuer knows that. You can update your income with your card issuer online or by calling.

Also, check that you’ve included all your income. Some people just include their salary, but if you’re at least 21 years old, you can include any income you can reasonably expect to access. That can include household income from your spouse or partner, retirement fund distributions, and income from freelancing or side hustles.

LEARN MORE: How Your Income Affects Credit Card Applications

3. Increase your credit score

The other big factor in your credit limit is your credit score. If you have a high credit score, that’s a sign you’re likely to repay money you borrow, so credit card companies will trust you with more credit than if you had a low credit score.

If your credit score is below about 720, improving it could help you qualify for higher credit limits. Here are a few ways to increase your credit score.

Pay your bills on time every month. Your payment history is the most heavily weighted factor in your credit score. Each on-time payment is good for your credit, but even a single late payment (that’s late by 30 days or more) can cause a huge drop in your score.Pay down credit card debt. Your credit utilization is also a significant part of your credit score. As you pay down your card balances, your credit utilization will decrease, which can increase your credit score.Don’t open too many credit cards and loans. Each credit application has a small impact on your credit score. It normally only takes off a few points, but multiple applications can add up.

4. Apply for a new credit card

One of the easier ways to get more credit is to open a new credit card. You won’t have a higher limit on your original card. But if you’re approved for a card with a $2,000 limit, that’s another $2,000 in credit you can use.

Some credit card companies also tend to be stingier with credit than others. Even if one card issuer gave you a low limit, you may be able to get much more elsewhere. Check out high limit credit cards to see cards that other people have gotten with very high credit limits.

A lower credit limit than you’d like can be annoying, but it’s also not that hard to fix. It may be as simple as asking your card issuer for a higher limit, especially if your income has increased or you’ve raised your credit score. And you can always try your luck applying for a new card to see if you get approved for a larger credit line.

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