There are many good reasons to ask for a credit limit increase, whether you’re looking to finance a large purchase or take advantage of the potential increase in your credit score.
If money is tight, increasing your credit limit can also give you additional flexibility. If you have a Chase credit card, asking Chase to increase your credit limit can help build your credit and provide you with additional purchasing power. Unlike other major credit card issuers, Chase does not allow you to apply for a credit increase online. If you want to increase the Chase credit limit, you will need to call the number on the back of your rewards credit card.
Before you make the call, here are some tips to help you make your request for a credit line increase as successful as possible, as well as some options to consider if your request is denied.
Before asking for a credit increase
Before you decide to increase your credit limit with Chase, there are a few questions you should ask yourself to determine if this is a good idea or not.
What is your current credit limit?
How much credit does Chase give you now? You can log into your Chase account to check the credit limit on each of your Chase credit cards. Your total credit limit should appear next to the rest of your credit card information (if you are using the Chase Mobile app, you may need to select “Show details”). If you’re having trouble finding your credit limit, you can always calculate it by adding your current balance to your available credit.
How much credit do you want?
Once you know your current credit limit with Chase, you need to determine how much credit you want. In general, it’s a good idea to err on the side of caution or, in other words, to try not to ask for an excessive increase in your credit limit. Going from $ 5,000 to $ 6,000, for example, is better than going from $ 5,000 to $ 15,000. You need to have a reasonable number in mind and be prepared to back up your claim with proof that you have used your credit card responsibly. If you have a history of on-time payments, for example, you may be more likely to score an increase with Chase compared to someone with a history of consistent late payments.
Are you eligible for a raise?
There are two main factors that help determine your eligibility for a Chase Credit Limit Increase, including your account history and your credit rating. If you’ve only had a Chase credit card for a few months, you probably won’t be eligible for an increase in your credit limit. Chase determines your credit limit when you first open a card, and you must wait at least six months before requesting a raise.
It is also a good idea to check your credit score before contacting Chase. Your application is more likely to be successful if you have good or excellent credit. If you find yourself below the threshold, you should take steps to establish your credit score before asking for a raise. You should also keep in mind that asking for a credit limit can cause your credit to drop sharply (which could lower your score by up to 10 points).
4 Ways To Increase Your Credit Limit With Chase
If you want Chase to increase your credit limit, you can always ask, but that’s not the only way to increase your limit. Here are four ways to increase your Chase credit limit and increase your purchasing power:
Apply for a New Chase Card
Sometimes the easiest way to increase your credit limit is to apply for a new credit card. Opening a new Chase credit card will not increase the credit limit on your old Chase cards, but it will give you an additional line of credit to use. Having that extra credit available could even increase your credit score.
There are a lot of benefits to having multiple credit cards, including the ability to earn signup bonuses and earn points and cash back through reward credit cards. The Chase Ultimate Rewards program can be particularly lucrative and even more so for frequent travelers.
In some cases, you may be able to get pre-approved for a new Chase credit card without affecting your credit score. With that said, you should keep Chase’s 5/24 rule in mind before applying; If you have purchased five credit cards in the past 24 months, whether those cards are from Chase or another issuer, Chase may decline your request.
Request a credit limit increase
If you would like to request an increase in your credit limit, you can call the number on the back of your Chase credit card to do so. Currently, Chase credit increase requests can only be made over the phone, and you cannot request a credit increase online. You should be prepared to discuss how much credit limit you want Chase to apply to your account, as well as your current income, employment status, and why you are applying for more credit. This is your chance to prove that you can responsibly manage your increased line of credit.
Receive an automatic credit limit increase
From time to time, Chase cardholders in good standing may receive an automatic credit limit increase. To increase your chances of winning an automatic limit increase from Chase, you need to make sure you manage your current Chase credit accounts responsibly, make payments on time, and avoid carrying high balances.
You can also increase your chances of earning an automatic credit limit increase by updating your income with Chase. If you’ve recently been promoted, taken on a new job, or increased your income in some other way, it’s a good idea to let Chase know. As a result, you could get your credit limit increased.
Respond to a targeted credit limit increase offer
Sometimes Chase will automatically increase your credit limit and other times Chase will ask if you want your credit limit increased. Responding to these targeted credit limit increase offers is a great way to build your credit. These types of offers should appear when you log into your Chase account, although you may also receive an email notifying you of a new or current offer. If you accept the offer, the increased credit limit is automatically applied to your account.
How often does Chase increase credit limits?
Chase can automatically increase your credit limit every six to 12 months if you are a borrower in good standing. Whether or not Chase automatically increases your line of credit depends on several factors, including your credit score, account history, and credit usage.
How long does a line of credit increase last?
In many cases, it only takes a few minutes to see the results of a request for a line of credit increase. Once your request to increase the credit limit has been approved, it should be immediately applied to your account.
How Much of My Credit Limit Should I Use?
It’s a good idea not to use more than 30 percent of your available credit, with an ideal usage rate of less than 10 percent. This means that if your total credit limit is $ 1,000, your balance should not exceed $ 300. If you use more than 30% of your available credit, it could have a negative effect on your credit score.
Keep in mind that this guideline primarily applies to revolving balances that remain on your card from month to month. For example, if you have a credit limit of $ 1,000 and load $ 500 on your card, it will not affect your credit usage as long as you pay off the balance in full before the end of your term. Grace.
Learn more: How to Apply for a Line of Credit Increase with Bank of America
What to do if your request is refused
If your request for a credit limit increase is denied, you still have options. Here are three ways to manage your credit after being turned down for a credit limit increase:
Try a balance transfer
If you were hoping to use a credit limit increase to free up space on a credit card, you might consider a balance transfer instead. Balance transfer credit cards allow you to transfer old balances from existing cards and often with at least six months of an introductory 0 percent APR to help you pay off those balances without paying interest . The best balance transfer credit cards offer 0% introductory periods that last between 15 and 18 months, giving you over a year to pay off your transferred balances.
Improve Your Credit Score
If your credit score is preventing you from getting the credit limits you want, you should try increasing your score (and in many cases, you can increase your credit score in just a few months). You need to focus on making payments on time and paying off your outstanding balances to increase the likelihood that your next credit limit request will be approved. Once your credit is where you want it, an increase in your credit limit can further increase your score.
Apply for another credit card
If you have requested a credit limit increase from Chase and have been declined, you may consider increasing your available credit by requesting a card from another issuer. If your credit score is not good, consider applying for one of the many bad credit credit cards or fair credit credit cards or you run the risk of another denial. If your credit score is good, applying for another card could help you continue to build a positive credit history.
Remember, just because Chase turned down your request for a credit limit increase doesn’t mean you can’t find other ways to get new credit. Credit card issuers periodically reduce credit limits, so if your Chase application is denied, you can always try a different issuer.
There are many ways to get an additional line of credit, especially if you are using your existing lines of credit responsibly. To see if you prequalify for credit card offers without affecting your credit score, you can use Bankrate’s CardMatch tool to be matched with a card that best suits your needs.