Timing a Credit Line Increase Request
Technically, you could apply for a higher credit limit online or call your card issuer to ask for one directly as often as you like. But whether or not you’ll be able to get approved for a higher credit limit depends largely on your card issuer’s policies. Many of them impose waiting periods or have guidelines on how frequently you can apply for a credit line increase. This chart shows how different card issuers compare with their respective policies. The waiting period is a way for the credit card company to gauge how responsibly you’re using the credit limit you already have. When you request a credit limit increase, the credit card company will look at your account history and credit history to decide if you can handle a higher credit limit based on how you’ve used the card so far. Some credit card companies will conduct a hard pull of your credit history when requesting a credit limit increase. Each inquiry for new credit can take a few points off your credit score.
When To Ask for a Credit Line Increase (and When Not To)
The credit card company’s timing is just thing to consider when deciding whether to ask for more credit. You also need to consider your own personal financial situation to determine if requesting a credit limit is the right move.
It Could Be the Right Time To Ask for a Credit Line Increase If:
Your annual household income has increased. Your credit score has recently increased. You’ve had your account for at least three to six months and used it responsibly. You haven’t applied for any other new credit lines in the past three to 12 months.
Under those conditions, your request for a higher credit limit may have a better chance of getting approved.
You May Want To Delay Asking for a Higher Credit Line If:
You have recent inquiries for new loans or lines of credit. Your income has recently decreased. You’ve had a recent late or missed payment on one of your credit card accounts. You’re at or close to your limit on the card you’re planning to request an increase for.
Those factors could be red flags for the credit card company and cause it to deny your request.
