Before you go ahead and make the request, it’s important to think about why you want to increase your credit limit.
You may have a big expense coming up and have assessed from your budget that you could benefit from a credit limit increase. 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.
However, needing a credit limit increase to make ends meet could also be an indicator that 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 an increase in your credit limit could leave you in a vulnerable situation. For example, is it foreseeable that your circumstances could change in the future? 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:
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: