Ever wondered why your credit limit on your credit card is at whatever limit that it is? And how to go about raising that limit? Before the 2009 credit card reforms, it was fairly common to see people with excellent credit who had credit limits of $15,000, $25,000, or even $50,000 on some credit cards. Since then, credit limits have been scaled back so that the higher limits are usually around $5,000 or more, depending on your credit score.
850 to 781 (superprime): $9,543
780 to 661 (prime): $5,409
660 to 601 (near prime): $2,277
600 to 500 (subprime): $966
499 to 300 (deep subprime): $509
So, how do you get your credit limit increased?
Nearly every credit card company relies on your credit score to extend credit, but once you’ve been approved and have demonstrated responsible usage, the credit card company may utilize different criteria to determine if you’re eligible for a credit-limit increase. For example, they may ask you for updated personal information regarding your salary, they may look at your payment history (especially if you pay more than the minimum amount due), and they will likely look at your credit report.
Most of the time, assuming you have a solid history with a company, you’ll see “automatic” increases, but some companies don’t give automatic increases, and you’ll need to request an increase.
Bear in mind that requesting an increase can affect your credit score, just as having a higher credit limit that you’re utilizing to much of can also negatively affect your credit score, so use your larger credit limit just as wisely as you do the smaller one.