One of the many questions we receive at Equifax® involves credit limit increases. More specifically, people want to know how to ask for or when they might get a credit limit increase from a credit card company.
Have you ever wondered how often credit card companies typically increase your credit limit? Getting a higher limit can be tempting – it makes it seem like you can spend more. But more available credit isn’t always better, especially if it leads you down a path to overspending.
Let’s break down everything you need to know about how often credit card limit increases happen and what it means for your financial health.
The Frequency Of Credit Limit Increases
To begin, there is no set time frame for when credit card companies will raise your limit.
Some issuers will only raise your limit if you ask them to. Others will check your account on a regular basis and may raise your limit for customers who have a history of responsible use and payment.
Here are some ballpark ranges for the frequency of credit limit increases:
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Every 6 months – 1 year: Some issuers will consider an increase around every 6-12 months for customers in good standing. This isn’t guaranteed though.
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Every 1-2 years: For issuers that only review periodically, you may only see a bump up every year or two.
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When you ask for it: As we already said, some issuers will only raise rates when asked to. In this case, the frequency is completely based on when you ask.
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Never: If you carry high balances or have late payments, your card company may not increase your limit at all.
The takeaway is that credit limit increases can vary quite a bit in timing. They aren’t on a predictable schedule. The best practice is to avoid counting on automatic increases and instead manage credit responsibly regardless of your limit.
How Credit Card Companies Determine Your Limit
What do card companies look at when deciding if they should raise your credit limit? Here are some important ones:
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Payment history – Making at least the minimum payment on time each month helps. Perfect on-time payment history gives you the best case.
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Credit utilization – Using less than 30% of your available credit is ideal. The lower your utilization, the better for an increase.
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Credit scores – Good credit scores signify lower risk to the issuer. FICO scores above 700 improve your chances.
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Income – Higher income may indicate you can manage more available credit responsibly.
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Account history – A longer history with the card issuer helps versus being a new customer.
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Requests for credit – Too many new accounts or credit inquiries can work against you.
The Pros And Cons Of A Higher Credit Limit
Finally, let’s walk through the potential benefits and drawbacks of getting an increased credit limit from one of your card issuers:
Pros
- Lower credit utilization ratio
- Potential credit score boost
- More available credit in emergencies
Cons
- Risk of overspending
- Higher potential debts
The bottom line is that a higher credit limit can be helpful in moderation. But don’t look at it as permission to spend more frivolously than you otherwise would. Be cautious and stick to largely the same spending habits you had before any increase.
Use your new higher limit as an opportunity to keep utilization even lower, which can benefit your credit. But avoid the temptation to rack up more card debt simply because your limit went up.
At the end of the day, the best way to manage your credit limits is to spend responsibly, pay balances off in full each month, and let the credit cards work for you – not against you.
Will a credit limit increase affect my credit scores?
It all comes down to something called your debt to credit utilization rate. That’s the amount of credit you’re using compared to the amount of credit available to you. Generally, this is one of the factors that impacts credit scores, and creditors prefer to see a lower ratio of how much debt you have compared with how much available credit you have. Why?
Remember: Before extending credit, lenders want to know that you can responsibly manage the debt you do have – and that you aren’t overextending yourself, financially.
How to get a credit limit increase
There are two ways to get a credit limit increase. One is asking for a credit limit increase on an existing credit card – usually one you’ve had for at least a few months.
When you make this request, the credit card company may review one or more of your credit reports as part of their evaluation. Whether this is a “soft inquiry,” which does not impact credit scores, or a “hard inquiry,” which may impact credit scores, varies based on the creditors policies. If you’re considering a credit limit increase request, consider checking with the credit card company to learn more about their policy.
The creditor may also request proof of your annual income, employment status, and monthly rent or mortgage payments when reviewing your request.
You might also consider checking your own credit reports before making the request to ensure there’s no information that might increase your chances of getting turned down for the credit limit increase. If you find any information on your credit reports you believe is inaccurate or incomplete, you can dispute that information with the company that reported it or file a dispute with the credit bureau providing the credit report. At Equifax, you can create a myEquifax account to file a dispute. Visit our dispute page to learn other ways you can file a dispute with Equifax.
The second way you may get a credit limit increase is if a credit card company increases your limit without a request from you. This typically occurs after you’ve demonstrated responsible credit habits such as making on-time payments and paying more than the minimum payment required.
Whether a credit limit increase stems from your request or the creditors decision, it’s important to evaluate your own personal situation and continue to use discretion in maintaining responsible credit behavior.
How Often Should You Ask For A Credit Limit Increase From Your Credit Card Company?
FAQ
Will credit card companies increase your limit automatically?
Yes, credit card companies may increase your credit limit automatically. This often happens when you consistently manage your credit well, making on-time payments and maintaining a good credit score.
What triggers a credit limit increase?
You may qualify for a credit limit increase by keeping your financial information up to date, making on-time payments and monitoring your credit reports. Feb 20, 2025.
How long should I wait between credit limit increase requests?
If your credit limit increase request is denied, you can still apply again later. However, it’s good practice to: Wait several months between requests.
Is it good to request a credit limit increase?
Does requesting a credit limit increase hurt your credit scores? In the long term, a credit limit increase may improve your credit scores, provided you make regular, on-time payments. In the short term, however, asking for a credit limit increase may temporarily decrease your scores.