Get Your Card Issuer to Grant You a Limit Increase! (Here's How)

Most of us, at some time or the other, have used credit cards as a form of funding, especially during a liquidity crunch or when we urgently needed cash for some unforeseen expenditure. However, every once in a while it may happen that the limit authorized by the credit card issuer is not enough to meet our requirements.

In such a situation, you might be tempted to go over the limit and spend beyond the authorized amount. But this is something that can prove to be quite dangerous - not only can it lower your credit score, but it can also make you susceptible to steep fines and penalties. (More info on: why you should never exceed your credit card limit.)

So what do you do if you find that your monthly expenditures are set to rise in the near future, but your limit is not high enough to meet the same? One of the options is to request your issuer to increase your authorized limit.

Here's how you can go about doing this.

Have a Valid Reason: Before asking for a limit increase, ask yourself why you want it. Is it for a business-related purpose, or is to pay for that flat-screen TV that you don't really need? It is advisable to request a limit raise only if you can afford to pay the balance in full every month, otherwise you'll simply end up accruing more interest.

Don't Ask for a Significant Increase Too Quickly: Wait at least six months before asking for a limit raise on a new card - any requests made before this period are likely to be denied. Also make sure that you don't ask for too much. Trying aiming for a 10 to 20% increase, as that's often the most you can hope to get.

Choose Your Best Credit Card: It's a wise move to ask for a limit increase on your best card, since this is where the request is most likely to go through. Applying for a limit raise causes the issuer to pull your credit report – and the resulting hard inquiry may lead to a drop in your credit score. Hence, don't request credit increases on all of your cards, as multiple hits on your report can give issuers a negative signal.

Use Your Card Often: By using your card often and regularly over several months, and paying off the entire balance on time, you can prove to the issuer that you need access to more funds and can handle it in a responsible way. This will set you up to be able to ask for more increases.

Build Your Case: Tell your issuer that you've been a loyal customer and show them that you've always paid your bills in full and on time. If you have a good reason for asking for a limit increase, mention it. If the card company gives a negative response, remind them that there are other issuers that you could take your business to, or ask for a meeting with a supervisor.

In most cases, credit card issuers review the accounts of cardholders periodically, and if they are deemed eligible, automatically increase their limits. However, at times you may find that despite your best efforts, issuers have either not raised your credit limit at all, or not as much as you'd hoped for. This can prove to be a problem if you've been banking on these extra funds for growing your business. In such a situation, our team at Fund&Grow can help you get access to credit cards that total as much as $50,000 to $250,000 with 0% interest. In fact, we'll show you how to get instant approval for this line of credit, so that you can start using the funds right away! All you need to do is call us at (800) 996-0270 and we'll take care of the rest.