Before you make the request, it’s important to think about why you want to increase your credit limit. For example, you may have a large or unexpected expense you need to pay for. If this is the case, calculate how much interest you may potentially be charged and set yourself a clear repayment plan to confirm you’ll be able to afford it.
If you need to increase your credit limit to make ends meet, however, this could mean you’re struggling to manage your finances. In this case, increasing your credit limit could make your financial situation worse.
Another thing to think about is whether a higher credit limit could leave you in a vulnerable situation. For example, are your financial circumstances likely to change? And if so, would you still be able to meet your repayments?
As well as giving you more money to spend, increasing your credit card limit can mean:
However:
Having a higher credit limit won’t necessarily have a negative impact on your credit score – the important thing is how you use it.
If you maintain a low balance and keep up with the credit card payments – you can improve your credit score. But spending near, or over, your credit limit each month could suggest you’re struggling to manage your finances. This could have a negative impact on your credit score.
If you want to increase your limit, you’ll need to contact your lender and make a request. You won’t be guaranteed an increase. Your bank or lender will review:
