Should You Request a Credit Line Increase?

When you open a credit card, you are starting a new relationship built on trust. Your initial credit line reflects your issuer extending you a small amount of trust. If you consistently pay your credit card bill on time and establish a good credit history, your credit card company may extend you more credit.

Why request a credit line increase?

A credit line increase may improve your financial life in a few ways, as long as you have the capacity to take on more credit and manage it responsibly.

A small credit line limits your spending power. With a higher credit limit, you may have more flexibility for pricier purchases, like furniture, or to cover emergency expenses, like veterinary bills. Plus, a higher credit limit may also give you the opportunity to earn more rewards.

Increasing your credit limit might also have a positive effect on your credit score. Your credit utilization ratio, which is the portion of your available credit in use at one time, plays a significant role in determining your credit score.

When you have a low credit limit, even a small purchase may increase your credit utilization ratio, potentially lowering your credit score. But with more available credit, it’s easier to keep your credit utilization to a minimum.

How often can you request a credit line increase?

Credit card issuers may only allow you to request additional credit once a year or every several months. The specific policy depends on your credit card company.

If your credit card issuer has recently denied a request for a higher credit line, you may want to wait until your circumstances change before submitting a new request, even if you’re allowed to request sooner.

Your card issuer must send you a written explanation after denying your credit limit increase request. If the issuer explains that you don’t meet the credit score requirements, you may want to focus on reducing your outstanding debts and making on-time payments to build your credit score before making another request.

How should you ask for a Discover^® credit line increase?

Discover Cardmembers may file a credit limit increase request over the phone or online. To reach a customer service representative within the U.S., call 1-800-DISCOVER, which is printed on the back of your credit card.

You may also request a credit limit increase through the online banking portal or mobile banking app. Just select “Card Services” and then “Credit Line Increase” in the online Discover Account Center or “Services” and “Credit Line Increase” in the Discover Mobile App.

When should you request a credit line increase?

If your credit score or financial life has recently changed for the better, or you’ve established a strong positive payment history with your card issuer, it may be a good time to request a credit increase.

Your credit score has improved

Before requesting a credit line increase, you may want to check your credit reports and credit scores. If your credit history has improved, you may qualify for a higher credit line.

A higher credit score signals to your lender that you have maintained healthy credit management habits since opening your account and may be ready to take on additional credit.

Your account has been open for a while

Credit card companies generally want to make sure they trust you to repay your debts before offering you more credit. If you have been using your card responsibly and consistently paying your bill on time for several months or even years, you may be in a good position to request an increase in your credit limit. You might even receive an automatic credit limit increase.

Your income has gone up

If you’ve recently gotten a raise at work or a new, higher-paying job, you may be better equipped to handle more credit. With more income, you might be able to make higher credit card payments to cover increased spending.

Your card issuer may request proof of your income, like pay stubs or bank statements, before approving your request.

You need more credit for a large purchase

If you plan to use your card for a major expense in the near future, like a trip, you may want to request a higher credit limit for more spending power. However, it’s important to make sure you have a plan for paying off the expense first.

When shouldn’t you ask for a credit line increase?

Applying for a credit line increase when your financial or credit situation is rocky may not yield positive results. In fact, applying may even lower your credit score.

Your credit score is low or has decreased

If your credit score is lower than you’d like or has gone down since you opened your credit account, you’re typically unlikely to qualify for a higher credit limit. Plus, applying for a credit line increase sometimes leads to a hard credit inquiry, which may have a negative effect on your credit score.

You may want to improve your score before requesting a credit line increase.

Your income has gone down

If your income has gone down since you got your credit card, your credit card issuer may deny your request for a higher credit limit. When you’re bringing home less money, you may not be able to cover higher payments.

You recently opened other lines of credit or loans

Each time you open a new credit account, a hard credit inquiry may appear on your credit report and lower your score.

You may recover from a hard credit inquiry by practicing responsible credit habits on your new account. However, if you’ve recently taken out a loan or opened a new credit card account, your score may not have had a chance to bounce back yet.

You were denied other credit recently

Applying for multiple credit cards or loans within a short period may point to financial distress, especially if lenders have already denied multiple applications. If a recent loan or credit card application was denied, or you recently requested a higher credit limit on another account, you may want to wait until your credit score recovers to request more credit.

The bottom line

If you have a strong credit score and steady income, and you want the flexibility to spend a little more with your credit card, you might apply for a higher credit limit. But remember, even after your credit limit goes up, it’s important to avoid overspending and stay on top of your payments. That way, you may continue accessing more credit when you need it.