Asking for a credit limit increase is a great way to free up some credit available for a large purchase, and it can also boost your credit score. Since your credit usage rate is 30% of your FICO credit score, a higher credit limit can reduce your credit usage and increase your overall score.
If you have an American Express credit card, you may be considering requesting an increase in your credit limit. This guide covers the ins and outs of Amex credit limit increases, including how to request an increase and what to do if your request is denied.
Before asking for a credit increase
There are a few things to consider before applying for a credit limit increase with American Express, including your current credit limit, the amount of credit you want, and your potential eligibility.
What is your current credit limit?
You can find out your current credit limit by checking your Amex credit card account details, which you can find by logging into your online account management page or checking your paper credit card statement.
How much credit do you want?
If you are considering increasing your credit limit, think about how much credit you might be asking for, and keep in mind that asking for too much additional credit could result in denial.
According to Experian 2020 data, the average credit limit on all cards for Americans is $ 31,015, but the best credit limit for you depends on your unique financial situation. American Express suggests requesting a 10-25% increase to your current limit for the best chance of approval.
Are you eligible for a raise?
You should take stock of your credit rating and borrowing history to determine your eligibility for a credit limit increase. To be eligible for an Amex credit limit increase, your credit card account must be open for at least 60 days. You also need a good credit score and a positive employment and income history to qualify.
3 ways to increase your credit limit with American Express
Here are a few different ways to access more available credit, either by getting an American Express credit limit increase or by applying for a new American Express credit card.
Request a credit limit increase
Most of the time, the best way to get a credit limit increase is to apply for one. With American Express, you can request an increase in your credit limit by calling American Express customer service or through your online account management page.
You can also wait to see if your credit limit automatically increases over time. Most card issuers will consider increasing your limit once you demonstrate a history of responsible credit use, such as paying your credit card bill early or on time for six to 12 months.
Apply for a new Amex credit card
If you want more credit from American Express, you should also consider applying for another Amex rewards credit card. This option can help you get extra credit, and the best credit cards also come with welcome bonuses and ongoing credit card rewards. If you are not eligible for a new Amex card, you can also check credit cards for fair credit.
How Long Does an American Express Line of Credit Increase?
If you are eligible for an Amex credit limit increase, you may see the increase reflected in your account immediately. You can find out if your increase has taken place by logging into your online account management page and checking to see if your credit limit has been increased to reflect the change or not.
Does American Express automatically increase credit limits?
American Express may automatically increase your credit limit every six to twelve months. However, just because you did not receive an automatic increase does not mean that you are ineligible. You should contact American Express to see if you qualify.
Is American Express making an effort to increase its line of credit?
Asking for a credit limit increase sometimes results in a serious re-investigation of your credit report, which could temporarily lower your score. A request for a credit line increase may not always trigger a high demand for American Express, but it is always a factor you should keep in mind.
Can I request a temporary increase in Amex’s credit limit?
In certain circumstances, American Express may grant cardholders a temporary increase in their credit limit. This type of increase is only available in limited circumstances and you must have been a card holder for at least six months.
What to do if your Amex request is denied
If your Amex credit limit increase is denied, there are a few steps you can take to put yourself in a better position to qualify for a full credit limit increase.
Pay all your bills on time
Your payment history represents 35% of your FICO credit score, so you need to make sure you pay all of your bills early or on time. By making sure your credit profile is clean and free from late payments, you can prepare for better credit over time.
Pay off the debt
Since your credit usage accounts for an additional 30% of your FICO score, paying down debt on revolving lines of credit is a great way to boost your score. American Express may also be more willing to increase your available credit when you owe less overall. You should try to keep your credit usage below 30 percent.
Check your credit reports for errors
Be sure to check your credit reports for errors. You can do this with all three credit bureaus â Experian, Equifax, and TransUnion â for free at AnnualCreditReport.com. If you find any reporting errors or errors on any of your reports, Bankrate’s guide to disputing errors on your credit reports outlines your next best steps.