One of the quickest and easiest ways to boost your credit score is by increasing your credit limit. Of course, before you request a credit limit increase from your lenders, you’ll want to have a strategy in place.
Come dive in with us as we give you a quick rundown on how you can increase your credit limit.
Increasing Your Credit Limit
If you’re in a place where your overall financial situation has improved since you began using credit cards, it could be a good time to speak with your lender about increasing your credit limit. Let’s say that your credit score recently went up or you got a raise at your job. These things could show lenders that you have the ability to handle a higher credit limit.
Fun fact: you can request a credit limit increase every six months. It’s important that you don’t have too many inquiries on your credit report at the time of your request, as well as have your credit in the best shape possible.
When making your request, you’ll want to ask your lender whether they will have to make a hard inquiry or a soft inquiry. You may not want a hard inquiry on your credit report at this time. If that’s the case, you should ask if there’s a specific amount they’d be able to approve without pulling a hard inquiry on your credit.
When you get in contact with your lender to ask about this request, you can do so online or over the phone. However, you must prepare your financial information and let them know why you are requesting additional credit. It may be a good idea to give your bank a call and speak with one of their representatives. Speaking with someone on the phone can give you a better chance of negotiating than writing something online.
By increasing your credit limit, you can improve your credit score. Remember, your credit utilization ratio, which is your debt-to-credit ratio, makes up a large 35% chunk of your overall credit score. Even if you have the same debt, higher credit limits can make it look as if you’re more financially stable.
Bottom Line – Boost Your Credit Today
Fixing poor credit doesn’t have to be difficult. Sometimes, it’s a matter of going through your accounts and making sure all of the right information is there. Sometimes, it is simply a waiting game. And sometimes, it’s using hacks like this one to show lenders you’re a more responsible consumer.
Of course, there is always the option of purchasing tradelines to potentially boost your score too. Make sure to get in touch with us here at Boost Credit 101 if you are interested in seeing how tradelines could potentially boost your credit score.