Today i'm going to quickly go over three ways that you could potentially increase your credit card limits, but i want to make it very clear that if you do end up getting an increase on your credit card limit 2022 that doesn't give you an excuse to spend all of that money.
Easy Ways to Increase Your Credit Card Limit
So for instance if you end up with a 10 dollar limit don't go out there and spend ten thousand dollars that is not the point of getting a credit card increase.
because i'm going to explain a little bit about what's called utilization at the end of this article because it is a little bit boring, but it has to do with your credit score.
So once we go over these three ways, i'll explain that to you guys, so you can understand why getting an increase is important and not just spending it as to why in the world you'd want to get an increase.
also want to make it clear that credit card interest is extremely expensive and so i always advise that you pay off your statement balance in full every single month.
That way you technically have an interest-free credit card, and even if you do end up with a credit increase that's not going to affect you as long as you're paying off that bill every single month.
Call the issuer
now the first way that you can try and get a credit card limit increase is very straightforward here.
All you're going to do is just turn your card look at the back side of it and call the number that's on the card directly to that issuer.
And then once you get a hold of customer service, just ask them if you're eligible for a credit limit increase and see what happens because a lot of the time they can help you speed up that process and get a limit increase without you really doing anything else than just calling them.
So just give your credit card issuer a call and see what happens because honestly the worst thing that can possibly happen is they're just going to tell you no, and it's really not the end of the world because you can always try again in the future.
Add authorized user
the next way that you can potentially increase your credit card limit is by simply adding an authorized user.
now what this means is that you're actually authorizing someone else to have their own credit card, but whenever they spend on it, it goes under your account.
So now if you're spending and their spending is just pooling against the same account, and so you really want to make sure that you trust them and that they're responsible with the credit card.
because at the end of the day you are responsible for that credit card, even if the authorized user made those other expenses.
so just be responsible here, but at the end of the day this can help increase your credit card limit because the spending is going up and because you're authorizing someone else to use a card under your name.
because what it really comes down to is if you have an authorized user you both are probably going to be spending more combined than you would just spend yourself.
And so when there's an increase going on with the spending a lot of the time the credit card company might go a little bit faster to get you that credit card limit increase because they're hoping that if they increase the credit card limit, then you're going to spend more and statistically.
If you are paying interest on your credit card, then obviously they are going to make more money by having a higher limit because you are capable of spending more.
Do nothing!
now the next way that you can increase your credit card limit is extremely simple, and all you have to do is literally nothing.
Just continue to use your credit card like you normally do keep it open and active and naturally over time.
Your credit card issuer is going to increase your limit now i can't say when they're going to do this.
Typically. It's about once a year or once every two years, but sometimes i've seen it as quickly as every six months and it just depends on your issuer and your spending habits.
But literally if you do nothing except keep your account active and use it, then you will be getting credit card increases over time.
So if you want to potentially increase your credit card limits try giving your credit card issuer a call and see if they'll increase it for you.
Add an authorized user or just start spending more on the credit card, and then the third way is to just do nothing and keep your card open and active and eventually you will have a credit card increase.
Utilization explanation
at the beginning of the article i did mention credit card utilization and how it affects your credit score.
So basically how it works is if you spend less than 30 percent of your total limits, then it's going to help your credit score, and if you spend more than 30 percent of your total limits, then it's going to hurt your credit score.
So basically if you have a thousand dollar limit and you spend 300 bucks, then that's right at the maximum level of thirty percent for your utilization.
So essentially if you have a credit card increase to let's say five thousand dollars, then if you're spending 300 that's less than 10, and so obviously if you have a higher credit card limit, then your utilization is easier to manage and that is always going to help your credit score, like i said if your spending is below 30 percent of your total limits.
So that is it for today's topic how to increase your credit card limit.