Increase Your Visa Credit Limit With Ohio University Credit Union

Credit cards are great financial tools. They can help you make large purchases, have emergency cash for a rainy day, and help you build your credit history. The problem is, most cards start out with a pretty low credit limit, around $1000. So, how do you ask the bank to increase your limit? Keep reading for DoNotPay's tips on how to ask the credit union to raise the limit on your Visa.

How Credit Limits Work

A credit card is fundamentally a loan from a credit union. The Ohio University Credit Union (OUCU) issues Visa cards to members, but Visa doesn't make the credit decisions; the credit union does.

When you get a Visa, the OUCU agrees to lend you money through the card. The credit limit they give you is the amount of money that they are willing to let you borrow at that time. Most people have a limited credit history when they first apply for a credit card, so the credit limit is usually not very high. As you build your credit file, making sure you don't carry a high balance (more than 35% of the card's limit) and paying more than the minimum due every month, the credit union is more likely to increase your spending limit.

How the OUCU Determines Your Credit Limit

The credit union takes several things into consideration when they decide how much money you can borrow at any given time.

• Credit history--Your credit report lists all your debts, how much you owe every month, and your payment history. This is probably the primary factor in determining your creditworthiness.
• Income--They calculate how much of your income goes towards paying your debts every month. If you have too much debt, you will not be eligible for a high credit limit.
• Job history--If you have a good track record with your job, the OUCU deems you a good credit risk. Any time you get a raise or promotion, let them know that you're making more money.

Cards with Automatic Increases

Some card issuers will automatically increase your credit limit. The Capital One Platinum Credit Card is one such card. They will boost your limit after six months of a strong payment and usage history.

When Can I Request a Higher Credit Limit?

Wait at least six months after you get the Visa to ask for a higher credit limit.

If you've had your Visa for more than six months and would like a credit limit increase, the OUCU will consider all the factors they did when you first applied, plus two more things.

1. Visa Payment History. Financial institutions put greater weight on your Visa payment history when you're asking for a higher limit. This means paying off the balance every month or at least making more than the minimum payments.
2. Credit Utilization. Even though the credit union gives you a credit limit, another rule of thumb is that you should not carry a balance of more than 35% of that amount. If you maximize the limit every month but pay off at least 65% of that amount, you're fine. It's carrying that balance for months that indicates you are unable to make bigger payments.

Things to Consider Before Requesting a Credit Limit Increase From OUCU

Timing is important when you are thinking about asking for a credit limit increase. The credit union will run a new credit report, so if you've missed any payments or had any other adverse activity, now is not the time to make the request. Since you already have a Visa with the credit union, they will probably pull a "soft" credit report--one that doesn't show up as an official inquiry. It's really critical that you ask the loan officer at the credit union not to run a "hard" pull--one that will make a note of your request for an increased limit.

How to Request a Visa Credit Limit Increase From OUCU

If you think you qualify for a credit limit increase on your Visa, here's how you can do it.

You can also sign up with DoNotPay to ask the OUCU for a credit limit boost. It's quick, simple, and easy.

How to request higher credit limits using DoNotPay

If you want to request higher credit limits but don't know where to start, DoNotPay has you covered in six easy steps:

1. Go to the Credit Limit Increase product on DoNotPay.

2. Select which type of card you own and your credit provider.

3. 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.

4. Tell us more about your current income and expenses and why you would like to request a limit increase.

5. 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.

6. 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 Can Help You Find Other Credit Cards

If you already have a Visa through the OUCU, you're probably eligible for other credit cards. Credit unions offer a limited menu of options, but we can help you figure out the best card for your financial needs.

Some cards offer strong rewards programs, and others let you transfer balances for free, while others may give you an interest-free grace period every month. Check out the offers on our website from:

• Wells Fargo
• Bank of America
• American Express
• Apple