Asking your credit card issuer to increase your credit limit can not only boost your buying power, but also lower your credit utilization, which could help your credit scores. Whether your request will be approved, however, is a matter of timing. It's often said that the best time to ask for new credit is when you don't need it (at least, not yet).
When is the right time to ask for a credit limit increase?
- When you’ve recently gotten a raise
An increase in income means you’ll be able to cover an increase in credit card expenses. Note: You may need to provide proof of your new income to get approved for a higher credit limit.
- When your credit is good
A good credit score signals to your credit card issuer that you’re responsible with borrowed money and more likely to make payments on time. You can track your credit score for free using CreditMantri. Remember, good credit isn’t the same thing as good financial health, but creditors assume that these qualities are linked. Aim to have both.
- When you have a good track record
If you’ve made all of your payments on time and never maxed out your card, you’re more likely to get approved for a limit increase. On the other hand, late payments and high credit utilization can suggest someone having money troubles. You’ll also have a better chance if you’ve had your account with this particular creditor for at least six months to a year.