If you’re strapped for cash, increasing your credit limit can help free up some spending money. Having a Chase credit card with a higher credit limit can help you build or improve your credit history and give you more freedom when making purchases. But unlike other big credit card companies, Chase doesn’t let you ask for a credit limit increase online. Here are some suggestions to make your credit line increase request as successful as possible. Before increasing your credit limit online with Chase, you must consider the following:
How Much Credit Do You Currently Have?
How much credit does Chase currently extend to you? You can check the credit limit on your Chase credit cards by logging into your Chase account. Your total credit limit should be shown along with the rest of the information about your credit card. You may need to select your credit limit. Chase sets your credit limit when you get a card for the first time. You should wait at least six months before asking for an increase.
Before contacting Chase, you should also check your credit score. Your request will likely be approved if you have good or excellent credit. If your credit score is below the threshold, you should try to improve it before asking for an increase. You should also remember that requesting a credit limit may result in a hard pull on your credit, which could drop your score by up to 10 points.
Will Chase Increase Credit Limit?
In many cases, learning the outcome of a credit line raise request takes only a few minutes. If your credit line increase request is approved, it should be applied to your account immediately.
How Do I Increase My Chase Credit Limit?
If you want to increase your credit limit, you can always ask Chase—but that isn’t the only way. Here are four methods for increasing your Chase credit limit and increasing your purchasing power.
#1. Request an Increase in Your Credit Limit.
You can request a credit limit increase by calling the number on the back of your Chase credit card. At the moment, you can only ask Chase for a credit increase over the phone. You can’t ask for a credit increase online. Prepare to talk about the credit limit you want Chase to add to your account, your current income, employment status, and the reason for requesting more credit. This is your chance to show you can responsibly handle your increased line of credit.
#2. Get an Automatic Credit Limit
Chase cardholders in good standing may occasionally receive an automatic credit line increase. To improve your chances of receiving an automatic limit increase from Chase, manage your current Chase credit accounts responsibly, make on-time payments, and avoid carrying large balances.
You can also increase your chances of receiving an automatic credit limit increase by updating your income information with Chase. It’s a good idea to notify Chase if you recently received a promotion, started a new job, or increased your income in any other way. As a result, your credit limit may be increased.
#3. Apply for a New Chase Credit Card.
Sometimes, getting a new credit card is the easiest way to raise your credit limit. If you open a new Chase credit card, your credit limit on your other Chase cards won’t go up, but you’ll have a second line of credit to use. Having more available credit may even improve your credit score.
One of the benefits of having multiple credit cards is the ability to earn sign-up bonuses, points, and cashback from rewards credit cards. For frequent travelers, the Chase Ultimate Rewards program can be especially beneficial.
You may be able to get pre-approved for a new Chase credit card without affecting your credit score in some cases. However, you should keep Chase’s 5/24 rule in mind before applying. If you’ve already got five credit cards in the last 24 months, whether from Chase or another company, Chase is likely to turn down your application.
#4. Respond to an Offer to Increase Your Credit Limit.
Sometimes Chase will automatically increase your credit limit or ask you if you want to increase your credit limit. Responding to targeted offers to raise your credit limit is a great way to boost your credit score. If you agree to the offer, the higher credit limit will be added automatically to your account. These offers should appear when you log in to your Chase account, but you may also receive an email informing you of a new or outstanding offer. If you agree to the offer, the higher credit limit will be added automatically to your account.
Does Chase Ever Automatically Increase Credit Limit?
If you are a good borrower, Chase may raise your credit limit every six to twelve months without you having to do anything. Your credit score, account history, and credit utilization all play a role in whether or not Chase automatically increases your credit line.
Will Chase Give Me a Credit Increase?
Chase checks credit card accounts regularly to send targeted marketing offers. If you’ve had a Chase credit card for a while, made all of your payments on time, and have good or excellent credit, Chase may offer an automatic credit limit increase. If this happens, you will get a letter or notice on your credit card bill. A soft credit inquiry is usually the result of an automatic CLI.
A Chase representative may review your account for an automatic CLI in as little as six months, but the process could take as long as a year. For example, Chase states that Slate Edge cardholders who spend at least $500 in the first six months and make on-time payments may be eligible for an automatic increase in credit limits.
There is no guarantee of an automatic Chase CLI, regardless of your credit score or how well you manage your Chase credit card. As a result, if you’ve had your card for a year or more, you should request a CLI.
How Much Should I Ask for a Credit Limit Increase?
Before submitting your CLI request, decide how much increase you want. If the existing credit limit on your card is $10,000, you have a better chance of getting Chase to increase it to up to $12,500 rather than $20,000 or more. Typically, you should request an increase of 10% to 25% of your card’s current limit. A request for an excessively high limit may raise concerns about your ability to repay and result in the request being denied.
Some banks will charge you a fee if you want to increase your credit limit. The First Premier Bank Card charges customers 25% of the increase in credit limit. As a result, if you increase your credit limit by $1,000, you will be charged $250.
You’d be better off applying for another card with lower fees or improving your credit score until the bank decides to increase your credit limit.
What Is a Reasonable Credit Limit?
A good credit limit is subjective. Each credit card will have its own set of potential credit limits. If your assigned credit limit is near that range, you may consider it a good credit limit. If you’re on the low end, it could be a bad credit limit.
Simply put, some credit cards have higher credit limit ranges than others. Check out our list of the best high-limit credit cards for more options with higher limits.
Regrettably, credit card companies rarely publish their credit limit ranges. Most of the time, you won’t know what credit limit you’ll be given until you apply and are approved. While these ranges differ from one card to the next, the type of card can often give you an idea of what to expect.
Student credit cards, for example, are intended for people who are just beginning to build credit. As a result, their initial credit limits are typically less than $1,000. So, if you’re given a credit limit of $750, it’s probably a good one.
However, if you applied for a regular cash-back rewards card, that $750 limit might be considered a low credit limit. This is because the best cash-back cards frequently have starting limits of $1,500 to $2,500.
Premium rewards credit cards usually have higher initial credit limits. Furthermore, luxury travel rewards credit cards (think top-tier cards with high annual fees) typically have an initial credit limit of at least $5,000. As a result, if you have one of these cards, a credit limit of $5,000 may be considered bad, while a limit of $10,000 or more may be considered good.
Generally, any credit limit of five figures or more is considered high. Secured credit cards are the main exception to the usual credit limit rules. The security deposit distinguishes secured cards from unsecured cards. You must make a cash deposit to open an account with a secured card. A secured card’s credit limit is typically equal to the deposit amount.
Is It Good to Accept Increase Credit Limit?
If you’re likely to spend your credit limit no matter how high, the higher debt burden may outweigh any benefits of raising it. Otherwise, think about requesting a raise. Before you do so, ensure you have an established credit history in good standing.
What Is a Good Reason for a Credit Limit Increase?
The only good reason to request a credit limit increase is when your expenses exceed 30% of your card limit. It is important to note that if you want to maintain a good credit score, you should not spend more than 30% of your card limit, as exceeding this amount significantly impacts your score. However, if you notice that you will be spending more than 30% of your card limit for valid reasons, you can request a limit increase.
Proceed with caution if your lender refuses to increase your credit limit. Also, luxury travel rewards credit cards (high-end cards with high annual fees) usually have a credit limit of at least $5,000 when you first get them
A request can harm your credit score because it will rest in a hard inquiry. A high number of hard inquiries on your credit report may make you appear desperate for credit, lowering your credit score. It is sometimes necessary to request a credit limit increase. Although your credit score may temporarily drop, it will eventually improve if you have a plan in place for prompt repayment.
Conclusion
Credit limit increases can be a good way to improve your credit score and take advantage of more purchasing power. Call the number on the back of your Chase card to request an increase. Chase cardholders with a recent income increase have a good chance of approval but beware of the risks of overspending. Responsible credit card use is essential for good credit and financial health.
Related Articles
- What Is a Credit Limit? How Does it Affect Credit Score
- CREDIT LINE INCREASE: How to Request Credit Line Increase
- HOW TO GET A HIGHER CREDIT LIMIT ON A CREDIT CARD
- FIRST CREDIT CARD: What It Is and All You Need to Know
- What Is Available Credit: Everything You Should Know
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