Jul 23rd, 2007
How to raise your credit limits on your credit cards
Many people who are rebuilding or starting their credit journey are often stuck in the low limit range of credit cards. Often times people with lower score or less-than-perfect credit will get approved of Visa and Mastercards in the range of $250-$750, with no hope of going up any time soon. Well, you do have hope. Higher credit limits means more freedom and higher scores because of a lower debt ratio. Here are a few pointers on how to lift those limits higher:
- Every 3 months call your credit card company and ask for an increase higher than you know you’ll get approved for. This will top you out at the highest they’re willing to lend you every time.
- Keep your usage on the card high but make your payments on time and you’re more likely to get those limit raises.
- Don’t be afraid to ask for a limit increase. The most they can tell you is “No”.
- Own property, such as a house. Credit card companies will give out more money to people who have assets.
- Get many credit cards and consistantly raise the limits on all of them. Often times credit card companies will match limits of other cards you have on your credit report in order to be competitive.
- Don’t be afraid to ask for limits beyond $15,000 when you start to get your limits higher. Many credit card companies won’t just stop at the $5000 level like many people think.
- When asking for a limit increase, tell the company that you need to make a “large purchase” coming up soon, so they think you plan on utilizing the limit, even if you ultimately don’t.
- Get Charge Cards on your credit report, such as American Express. Cards like American Express (Green, Gold, Platinum, or Centurion) generally have flexible limits with no true max out, so having these types of cards on your report shows responsiblity with credit and money.
In the end, don’t over-extend yourself and get into trouble with high limits, but utilize it to your advantage to raise your available credit when needed, lower your debt ratios, and boost credit companies confidence in your money management skills. Good luck!