A higher credit limit can offer several benefits, including increased spending power and a lower credit utilization ratio. But a surprising number of consumers don’t even attempt to ask, for fear of rejection.
As a result, consumers are holding themselves back due to a lack of confidence in their finances.
[SEE: Best Capital One Credit Cards]
Don’t Take Yourself Out of the Game
According to October 2025 New York Fed data, 37.8% of consumers think they’ll be rejected for a credit line increase. However, the actual rejection rate among applicants is 28.9%, about a 31% difference.
This means many consumers don’t even attempt to increase their credit, which may not come as a surprise. The New York Fed found that “the share of discouraged borrowers increased to 8% from 7.2% in June, well above the October 2024 level of 6.6%.”
If you’re not confident you’ll be approved for a credit line increase, bone up on your financial literacy a little bit. There are also a few things you can do to up your odds of getting approved for a credit line increase.
Tips to Improve Your Odds of Increasing Your Credit Limit
Regularly Update Your Financial Information
Make sure details like your employment status, income and mortgage/rent payment amounts are up to date. This information helps lenders determine if you’re eligible for a credit limit increase.
A good rule of thumb is to update this information at least once a year and whenever you receive a raise. Also, if you’ve gotten a raise, that’s actually a great time to ask for an increase. It shows lenders you can afford more expenses.
Time Your Request
A great time to request a credit limit increase is when your credit score moves FICO score ranges. For example, if you go from fair credit to good credit or very good credit to exceptional credit, that’s a great time to ask. It shows lenders you’re responsibly managing your credit.
But don’t get too excited. Lenders can see when you apply for multiple credit line increases. So if you apply at once with several credit cards, you’ll be seen as a risk and most likely get denied.
It’s also best to avoid asking for a credit limit increase if you’ve recently lost your job or your income has decreased. It may seem tempting to request an increase if you’re strapped for cash, but the likelihood of approval isn’t very high.
[Read: Best Credit Cards.]
Choose Your Best Credit Card
This is the card you use most often and the one you have the longest positive payment history on. The account should also be open for at least six months. If your account is any younger than that, you most likely won’t get approved for an increase.
Several issuers, including Discover and Capital One, often assess your account (without prompting) six to seven months after opening to see if you qualify for a credit limit increase.
Maintain Positive Money Habits
These are just good habits to have, but especially shortly before you ask for a credit limit increase.
— Make on-time payments: The longer your positive payment history, the better your odds are of getting approved for that increase.
— Pay more than the minimum amount due: This can understandably be a difficult ask for some, but this will lower your credit utilization ratio, which in turn improves your chances of approval.
— Monitor your credit report: You can view your credit report for free at AnnualCreditReport.com. Look for errors in case you need to dispute anything. You’d be surprised how often it happens.
[Read: Best Credit Cards for Good Credit.]
What to Do if You’re Denied
If you’re declined for a credit limit increase, find out why. The issuer is required to send you an adverse action letter explaining its reasons for declining your request, and the notice should arrive seven to 10 business days after the decision.
Once you know why you were denied, you can work on addressing the concerns in the letter. Maybe your credit score wasn’t high enough or your credit utilization ratio was too high. Whatever it is, give yourself six months to improve and then try again.
You can also apply for another credit card if the main reason for the request is to cover a large purchase. If that’s the case, you might be better off with a 0% APR credit card.
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Your Chances of Raising Your Credit Limit May Be Better Than You Think originally appeared on usnews.com
