What to Do if Your Credit Limit Increase Request Gets Denied
When a card issuer approves you for a credit card, they will assign you a credit limit based on various factors, including your income, credit score, and credit history. Some issuers will offer a higher credit limit once they've established their credibility as a cardholder.
However, you can request an increase if you need it. While the actual requesting process is pretty straightforward, there is a chance you will get a . But worry not. DoNotPay has a solution.
How Credit Limit Increases Work
A credit limit is the amount of money your card issuer gives you once you're approved for a credit card. It refers to the maximum amount you can charge on your card before the issuer requires you to pay the balance.
Your credit limit affects your credit score due to the credit utilization ratio. This ratio refers to the percentage of total available credit you use at a given time. The credit utilization credit is derived by dividing your outstanding balance by your credit limit. If the limit is high, you get a better credit score and vice versa.
A higher credit limit is usually a good sign. It means your purchasing power has increased and shows you've been responsible enough with your finances. Cardholders sometimes automatically increase one's credit limit if they:
- Use the cards frequently
- Keep the same balance always
- Issue timely payments
- Have had their card for a long time
You may be asking, can I increase my credit limit unemployed? The answer is yes. Credit companies are usually more interested in your income than your job. As long as you have access to pay, your credit limit can still be increased.
Who Can Request a Higher Credit Limit?
Requesting your credit card company for a higher credit limit usually helps boost your buying power, increases your credit score, and lowers your credit utilization. Your card issuer will give you an automatic increase if you:
- Recently opened a card account
- Have a secured credit card
- Had a credit card limit decrease in the past several months
- Your previous request for a credit limit increase declined
Card issuers usually consider several factors whenever cardholders request a credit limit increase. Some of the factors include:
|Timely payments||Your card issuer will consider your request if you've issued timely payments to your credit card. Any delinquent payments will result in a declined request.|
|Credit history||Limited credit history can affect your approval odds. A card issuer typically wants to see that you are an experienced borrower who can repay their debts on time. Short credit history may disprove your creditworthiness.|
|Credit score||Your credit score serves as a risk indicator for card issuers. It lets them know how likely you are to pay them back. People with high credit scores usually have a better chance of approval.|
|Income||When applying for a credit card, the lender will assess your debt-to-income ratio to make sure that they only offer you an amount you can reasonably payback.|
|Utilization rate||Your credit utilization shows how much of your available credit you're currently using. Experts recommend using less than 30% to raise your odds at a credit limit to increase approval.|
|Hard inquiries||Hard inquiries show up on your credit card report when a lender checks your credit after your request. Too many hard questions are considered red flags by lenders. Many card issuers consider these a sign of a high-risk borrower who's opening many accounts and not paying them back.|
When to Request a Credit Limit Increase
Requesting a credit limit increase boils down to the right timing, as many experts recommend ordering one when you don't need it. Still, it can be tricky to determine when to ask for a . Is it after you've gotten a raise at work? When you've finally gotten a good credit score? Or have an excellent financial track record?
You may receive an automatic increase after 6 or 12 months of on-time payments with a new account. However, you can be declined for a credit limit increase if the card issuer is unsure you can handle an increase.
How to Request for a Credit Limit Increase on Your Own
- Contact your card issuer by phone
- Log into your account and make the request online
- Email them to inquire about eligibility for a credit limit increase
- Open a different card account if your current issuer limits you
How to Get a Credit Limit Increase With DoNotPay?
The process for requesting a credit limit increase isn't always a clear-cut one. There are high chances that you may get a declined credit limit increase. DoNotPay understands how tricky getting past the approval stage for a credit limit increase can be. This is why we came up with a Credit Limit Increase product meant to help our clients bypass all the formalities to get approval quickly.
- Go to the Credit Limit Increase product on DoNotPay.
- Select which type of card you own and your credit provider.
- Tell us more about your card, such as when you first created this card, your current credit limit, what you would like your new limit to be, your card number, and whether you've missed past payments.
- Tell us more about your current income and expenses and why you would like to request a limit increase.
- Indicate whether you want to allow hard inquiries to be made into your credit history. Upload a copy of your ID and provide your e-signature
- Submit your task! DoNotPay will deliver the request letter on your behalf. You should hear back from the card provider with confirmation or a request for more information within a few weeks.
DoNotPay will contact your issuer with a request letter. Your lender will then get back to you with a confirmation of approval or a request for more details within a few weeks.
Why Use DoNotPay
- Fast—Say goodbye to wasting time trying to get a limit increase.
- Easy—No more filling out tedious forms only to get your request for a credit limit increase denied.
- Successful—Sit back knowing we have your back.
DoNotPay Works Across All Companies
You can get a credit limit increase with other entities, including:
What Else Can DoNotPay Do?
Helping you avoid getting a denied credit limit increase isn't the only thing we can do for you. With DoNotPay, you can:
Try DoNotPay today to get started!