How do you get a bigger credit line?


Quick Answer

To get a bigger credit limit, use your credit card responsibly and make on-time payments for six months after beginning to use the card, then you should receive an automatic increase on your credit limit, explains Nerd Wallet. If this is not offered automatically, call the company or apply for the credit limit increase online.

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Full Answer

A higher credit line is beneficial to your credit rating because it improves credit utilization rates; the percentage of credit debt measured against your total credit available, explains Nerd Wallet. If your credit limit is $1,000 and your debt on that card is $500, for example, your credit utilization is 50 percent. It is best to maintain your credit utilization rates under 30 percent. So, when you receive a credit limit increase on a credit card, don't consider it as free money to spend immediately but instead use it as a tool to continue to improve your credit rating.

If you are denied a credit limit increase by your credit card provider, you have the right to inquire why and receive a response detailing the reason you were denied, says Nerd Wallet. If it has something to do with your credit report, make sure you order a report to ensure there are no mistakes. Make sure to correct any mistakes immediately.

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