Your credit limit is the maximum amount that you can spend on a credit card. There are a few reasons you might want to increase it. First, it could be that you want to spend more. Duh. Second, increasing your credit limit lowers your credit utilization. A high credit utilization (above 30%) can hurt your credit score so it’s important to monitor that number regularly.
Update your personal information with your credit card company.
Make sure your personal information is up to date with your credit card company. One of the most important numbers that they’ll look at when determining your credit limit is your income. So anytime you have an increase in your income, be sure to update your profile! Once you do that, you can call your credit card company and request a credit limit increase.
Improve your credit score.
A higher credit score may make you eligible for a higher credit limit. Make sure you are making all your payments on time, keeping your credit utilization low, and avoiding new credit inquiries. Anytime there is an update in your credit score, call your credit card company asking for an increase in your credit limit.
Add a co-signer or authorized user.
Adding someone with good credit as a co-signer or authorized user to your credit card account can help increase your credit limit if they have a good credit score. It is a little bit hard to convince someone to do this as they’ll be on the hook if you miss any payments, but a family member is usually a good option to consider.
Remember, increasing your credit limit should not encourage you to spend beyond your means. Use your credit responsibly and only make purchases that you can afford to pay back in full each month.
Peach out ✌️
