Credit cardholders sometimes feel that they need to increase the credit limit of their cards. This is probably because they actually prefer to purchase more stuff using their cards. Other cardholders say they feel like they have more freedom when using their credit cards to spend and would like to increase their credit limit to allow them to buy more goods. There are procedures to follow in requesting for an increase in your credit card limit, but there are several things to consider before you file a request to increase your credit card limit.
Timing is an important consideration
In the credit card business, the usual practice is to grant credit limit increases only to cards that have been used for at least six months. If your credit card has been in use for less than six months, there is very little chance for your request for increase in credit limit to be granted. If your card has been in use for only 5 months, it is advisable for you wait for another month before making a request to increase your credit card limit.
The Reason for Increasing Your Credit Limit
It is important to determine why you need an increase in your credit limit because you will surely be asked to explain the reasons for your request. One of the valid reasons for increasing your credit line is additional income. When you have more money to spend, it is natural for you have a higher credit limit. When you apply for an increase, you will be asked to justify your request so you should be ready with facts and figures to support your request. Your best justification is your credit history or good paying habits and the satisfactory way you have so far managed your credit card account.
Asking the Credit Card Company for Approval
The only way to increase your credit card limit is to convince the company that you need one. When requesting for the increase, you must be firm in your decision and be frank in informing the company you will be looking at other options if your request is denied. You can mention that you might be forced to do a balance transfer in case you are not given an increase in credit limit. If you have been a good paying customer, there is no reason why the company will not approve your request. The important thing to remember is that you should ask for a reasonable credit limit increase based on your history of using the credit card.
Ask for the Credit Limit That You need
Usually, an increase of 10% over your last credit limit will suffice; but you can ask for a bigger increase if you really need it. You can ask for a 25% increase but this is probably the highest increase that any company will approve. Requests for increase of credit card limit higher than 25% are seldom granted by credit card companies. On the average, a 15% increase is an ideal figure that can be easily negotiated.