Looking to increase the credit limit on your Chase card? Keep reading here to learn the different ways that your can increase your limit.
A credit limit is the maximum amount you can borrow from a lender on a specific credit card. If you exceed that limit, your credit will tank and you will face penalties such as paying fees, a decreased credit limit, and more.
Credit limits also help determine your utilization ratio which is the amount of credit used versus the amount available.
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Why You Need a Credit Limit Increase
Having a higher credit limit not only increase your purchasing power, it increases your credit score. Make sure that the reason you want a credit increased is a good one:
- If you’re sole reason for increasing your credit line is so that you can buy more things, make sure to think about how consistently you can pay it off. Don’t increase your spending power just to lower your score afterwards!
- On the other hand, if you want an increase to make one or two large purchases and you have a payment plan, then great. This is an example of how to properly use a credit cad.
- Increase your credit building strategy by increasing your credit line. A higher limit will mean that your credit utilization is reduced, which leads to a better credit score.
Automatic Credit Limit Increases
To determine how much you want to set your credit limit to, figure out how much credit you actually need for your normal spending habits. Be sure you can pay in full each billing period. If you spend more than you earn, increasing your credit card limit would negatively affect you.
If you have been using your card responsibly for several months, Chase may automatically award you an increase. For the best chances of an automatic increase:
- Make your payments on time each month.
- Pay off your card in full each month.
- Update any salary increases on your profile. A higher salary may make Chase see that you can afford a higher credit limit.
Many users also report receiving automatic increases when they have heavy usage. If you use a lot of your credit limit each month, that may indicate to Chase that your limit isn’t enough. But you MUST make sure to pay it off in full and on time each month so Chase sees that you can afford your spending.
If you receive an automatic increase, it has no impact on your credit score. Just celebrate your new higher limit! (But don’t go on a spending spree.)
Request an Increase by Phone
Automatic increases can take a while. If you don’t feel like waiting for that then you can try calling the number on the back of your card and simply asking. Often times when people call in to ask, they get positive responses. Please note that Chase will check your credit again prior to granting your request, which can ding your credit score.
Here are some tips for when you call and request an increase:
- Ask at the right time: Ideally, you should wait for at least 6 months after you’ve opened your card. Make sure that you have paid the balance off of all your cards before asking. Having a balance when requesting an increase does not look good as a user.
- Explain why you want the increase: If you provide a good reason for a credit increase, your agent is more susceptible to grant your request. Here are a few reasons to use:
- You wish to use this [your Chase] credit card as your primary card and would need a higher limit.
- There is a major purchase you wish to make soon. In this case you could be referring to a vacation, wedding, home improvement project, etc.
- In order to transfer a balance, you need a higher credit limit.
- You wish to keep your credit utilization low.
- Know how much you want: Call prepared with the amount you wish to increase your credit line. Make sure to be reasonable about how much you wish. to increase your credit line. If you have a $2,000 limit, it’s probably best to ask for a $3,000 line instead of a $10,000 increase. Ideally, a 25-40% increase is best, depending on your circumstances.
- Make your case for why you deserve it: Mention points about your credit history to boost the odds in your favor. Some points you could cover are:
- An increase in income
- Your loyalty as a Chase customer
- Other credit cards or banking accounts that you have open with Chase
- Paying your bills on time
- Be polite: Having a good attitude when asking for a favor always helps.
Apply For a New Card and Transfer Credit Limit
Another way to increase your credit limit is by transferring part of the credit from one Chase card to another. This is usually not an issue because the amount of money that Chase is lending you is the same. You can do this from other opened accounts or by opening a new one.
It’s easy to apply for a new card if don’t already have another one. If you do decide to open a new account, be aware of the Chase 5/24 rule. This rule states that if you have opened 5 or more credit/charge accounts within 24 months, you are likely not to be approved.
Be sure to note that you cannot transfer limits between personal and business cards.
What to Do When You Get Denied
If you apply for an increase and get rejected, don’t give up. There is no limit to the amount of times that you can request a credit limit increase. Simply try again later when your chances are better. Increase your chances by doing the following:
- Consult with another agent: If you feel like you deserve an increase and have been a good user, call again and try talking to another agent. Some people say that this decision is up to the agent to decide, so maybe you’ll have better luck with a different agent.
- Pay your bills on time: It it important to keep up good habits such as paying for your monthly bills on time. This includes credit card bills, student loans, car payments, mortgage, etc. Missing any kind of payment can mess up your report and credit.
- Pay off credit card debts: If you have other credit cards, make sure that you’re paying the debt on those off as well. All credit lines contribute to your credit score and eligibility for a limit increase.
- Don’t open new credit card accounts: If you’re opening a new credit card account, it’ll seem as if you’re looking for credit all over the place.
- Request a credit limit increase on other cards: Rather than opening a new card, try requesting for a limit increase on your other cards. When the limit on your other cards increases, you credit utilization ratio goes down. This can help boost your credit score, making it easier for you to increase the credit limit on your Chase account.
Increasing your Chase credit limit is fairly easy, just be sure to make your payments on time. It’s usually ideal to have your account open for at least 6 months but it’s not difficult if you’re a good user.
For more posts like this, check out our list of bank guides and tips on how to increase your credit limit!