The Right Way to Ask for a Credit Limit Increase on Your Credit Card
- FastUnsecured
- May 14, 2018
- 3 min read
Getting a higher credit limit is very useful in many ways; With it, you can pay for something in an emergency, make some significant purchases, and may even improve your credit score.
However, requesting a higher credit limit can be embarrassing.
You may fear that demanding a credit increase makes you seem like poor credit risk and one in emergency need of money. You might completely do not know how to ask.
Although consumers having low credit scores cannot get to the highest credit limits available, in certain circumstances, they can however still receive an increase in their credit limits.
How your credit limits are set
It is a fact that the highest credit limits offered to people are given for a simple reason: they are those with the highest credit scores and are considered more likely to pay the credit card bill on time and are not prone to default. Someone who has a low credit score will go through a hard time trying to persuade their credit card companies to increase their credit limit, although that's not impossible.
According to data from Experian, a credit bureau, as of December 2016, the average credit limit was $ 8,071.
The higher the creditworthiness of a person, the higher the credit limit. The following credit limits are the average for the credit scores used by Experian, and it is from highest to lowest:
SuperPrime credit score of 781 or higher: $11,357 credit limit.
• A prime score of 661-780: $7,593.
• NonPrime score of 601-660: $4,674.
• A subprime score of 500-600: $2,645.
• A deep subprime score of 300-499: $1,834.
The good thing is that credit limits increase with age. People earn higher and pay their debts later in life, and this can improve their score.
Improve your credit score with a higher limit
To finance large home purchases like renovation or the covering of your monthly expenses may be the biggest reason to apply for an increase in credit limits, but there are other benefits to finding an increased credit limit, your credit can improve.
Credit limits determine the credit utilization ratio, and a low ratio can help improve your credit limits. Credit utilization rates are the ratio of the credit you use to your credit limit. A 25% utilization rate is the best way to improve your credit score, which means you can use up to 25% credit on your credit card.
How and when to ask for an increased limit
No matter what you need, it is more likely that your request will be approved for an improved credit limit if you had a solid credit score and there is no recent issue or late payment.
This happens because your inquiry is treated as though you’re applying for a new credit card. The issuer of the card will conduct a credit investigation to determine creditworthiness.
Choose just one of your credit cards to request only for a higher credit limit.
Do not appear desperate or greedy
Banks lend money to those who do not need the money. That might sound insane, but that’s how they like to do business.
By you telling a bank rep. A pitiable story of the reasons why you need some cash, you might get an increment, but this excuse won’t work too often.
There are better ways to do that, and that includes: never lose a payment, always pay in full your balance for each month.
Wait for around six months
If you are not in immediate need of a credit increment or for extra credit, then you might have to wait for another six months as this is when credit issuers’ review accounts. You may ask for an increase or receive it automatically should you have an account in good standing.
Try to be the best customer while you wait to get your raise.
This article was written for GrandTetonProfessionals.com for FastUnsecured.com. For Media Relations, please contact Misty.Burrell@GrandTetonProfessionals.com and for Sales and Support, please feel free to reach out to us 24/7 by calling; 203-518-8071 or by email at Support@FastUnsecured.com
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