From freeing up more money to finance a large purchase over time to reducing your credit utilization ratio, scoring a higher credit limit can have a lot of great perks. As long as you don’t let a high credit line tempt you into taking on more debt than you can pay off, it can be beneficial.
If you have a Capital One credit card, asking for a higher credit limit is incredibly simple. In many cases, you can even receive a higher limit without having to ask. Read on for everything you need to know about how to request a credit limit increase with Capital One.
Capital One evaluates several different factors when approving cardholders for higher credit. To maximize your chances of being approved, we recommend you meet the following criteria.
- You have a history of on-time payments and responsible card use. Offering a cardholder a bigger credit limit represents more risk for a bank, so Capital One needs to be sure you can handle paying back what you owe. If you have a history of paying your bill late, the issuer will be less likely to offer you more credit.
- Your Capital One account has been open at least three months. The longer you’ve had your Capital One account open, the more time you’ve had to demonstrate that you are responsible cardholder who pays bills on time.
- You haven’t requested a credit limit increase in the past six months. This is not a firm timeline, but multiple requests for a higher credit line can seem like a desperate grab for more money. If you are asking a card issuer to extend more risk, you don’t want to seem overeager to take on more debt.
Before you request a credit limit increase
Before you request a credit limit increase, it is important to make sure you have all the information necessary to complete the process.
First and foremost, land on a number for the credit limit you want. Consider what you want from your credit line. Do you need a certain amount to pay off a big purchase over time? Could an increase reduce your credit utilization a percentage point? How much credit is too much for you to pay off?
With the answers to these questions, decide what credit limit will work for you. We recommend against asking for too much at once. In general, a 10% to 20% increase is a reasonable request. If you try instead to double or triple your current limit, it could seem like a desperate grab for money you can’t pay back.
You should also have a good idea of how you look to lenders before asking for a bigger credit line, so pull a free credit report and check your credit score before you make the request…….Read More>>