You’ve regularly paid your Chase credit card bill and haven’t reached the maximum on the card. Is it time to ask for a credit limit increase? Asking for one can be beneficial in certain circumstances, especially for those who are able to successfully manage their expenses.
The policies of card issuers may vary on how to request a credit limit increase, as well as the criteria companies use to approve or deny a request. Find out the process for getting a Chase credit card limit increase, how to qualify, and whether or not it’s a good decision.
How to get a Chase credit card limit increase
The Chase credit card limit increase can happen in one of two ways:
- Chase can increase your limit without being prompted.
- You can request an increase in your Chase credit card limit.
While some issuers have an online credit limit request feature, Chase does not; you have to phone. “Just call the number on the back of your card and ask for an increase in your credit limit,” says Kristen Bowdoin, general manager of Chase Freedom and Slate cards.
When you get a representative online, just ask if you qualify for a credit limit increase. After verifying your identity, the representative may ask you if there have been any changes in your finances – perhaps your income level has changed since you first opened the card.
The representative will then review your account history, check your credit, and within minutes you will be making a decision. It is that simple.
How often does Chase allow an increase in the credit limit?
Chase Card members can request line of credit increases every six months, Bowdoin explains.
In fact, one of the main selling points of Chase’s new card, the Slate Edge, is that new cardholders will automatically be eligible for a line of credit increase if they spend $ 500 in the six months. first months and make timely payments. “The vast majority of cardholders will benefit from the increased line of credit after the timely payment period,” Bowdoin said. After that, any future line increase should be requested.
Six months is a good rule of thumb when it comes to asking for increases to your lines of credit (or looking for new credit), says Rod Griffin, senior director of consumer education and advocacy for Experian, one of the three major credit bureaus. “Usually we say don’t ask for a lot of credit all at once and leave some time in between,” he says. This is because applying for credit in a short period of time can signal to credit scoring models that you may have cash flow issues and pose a higher risk.
What is the maximum credit limit for a Chase card?
Chase does not disclose specific line of credit limits; it depends on the particular card program and your history.
Factors that go into deciding to increase your limit between issuers are things like your current limit, the age of your account, the date of your last increase, and how you handled that account as a whole. Griffin explains.
How to Qualify for a Chase Credit Card Limit Increase
Eligibility for a Chase credit card limit increase really depends on your personal credit behaviors. “After a cardholder’s request, we would make a decision based on a number of factors, but not limited to, account history, creditworthiness, payment history and more” , explains Bowdoin.
For example, if you have late payments on your account, Chase may be less inclined to give you more credit. The issuer will also want you to use the card regularly. Ultimately, the review could look at a wide range of factors, Bowdoin says – “everything from payment and use to credit history.”
Before initiating a request for a credit line increase, Griffin recommends taking a look at your credit report, which you can do for free, to see where you stand. “That way, you’ll come in armed with the same information they might be looking at, or maybe even more than what they’re going to be looking at,” he says.
On a related note, Bowdoin recommends that Chase cardholders take advantage of Chase’s free Credit Journey tool, which offers free credit score verification and personalized information with specific suggestions for improving their use and improvement. overall credit.
If your credit report and / or credit history profile indicates that you are in a strong position, the chances of your credit limit being approved will be better.
What to do if you are denied an increase to your Chase credit card limit
Being denied a Chase credit card limit increase isn’t the end of the world. It probably means one of two things: your timing is out of date or your financial situation needs to improve. If you’ve had your card for less than six months, or if your last limit increase was recent, you may just have to wait a little longer.
On the other hand, being refused could indicate that you have financial maintenance to do. It’s in your best interest to determine what your credit gaps are, Griffin says. “If an issuer makes their decision based on your credit history and credit score, they will need to provide you with a denial or adverse action notice explaining why they denied your request,” he says. This document will specify the reasons for which it refused your request.
If the process of increasing the credit limit is based solely on an internal review, even though the card issuer is not required to tell you why it was declined, you can certainly ask. “It never hurts to see why,” Griffin said. “And they would probably explain or give you a reason.”
What to Consider Before Getting a Chase Credit Card Limit Increase
Before applying for a higher credit limit, it is important to understand the relationship between credit limit and usage. Usage means the percentage of your limit that you use each month. Credit scoring algorithms take a heavy toll on credit usage – it’s the second most important factor just behind payment history. Experts recommend staying below 30% usage to maximize your score.
“If you use your credit card to the max or have high balances, whatever your credit limits are, it’s going to hurt your credit rating,” says Griffin. “If you keep balances low compared to your credit limits, it will help your credit scores. ”
Reasons to ask for a credit limit increase
Asking for a credit limit increase is a straightforward process, and there are a few cases where it can benefit you.
To spend more without compromising your usage rate. If you have a $ 500 credit limit and charge $ 100, you’re using 20% of that card’s limit. But if you had a limit of $ 1,000, you could spend $ 200 to stay at the same 20% utilization rate. Especially for people who like to use their cards to earn rewards or cash back on their daily spending, higher limits give you more flexibility.
To access more purchasing power. Say you are planning a trip abroad and want to use one card to make all of your purchases. This might be a good time to ask for a credit limit increase, Griffin says. “It makes a lot of sense because you are using this card so you don’t have to carry around a lot of money, which is a security concern, and it helps protect you from fraud if you charge a fee.”
To profit from your good credit behavior. If you’ve recently improved your credit score significantly, the card issuer may not yet have decided to automatically increase their credit limit. If things are going well, then go ahead and ask.
Reasons not to ask for a credit limit increase
Too often people think that asking for a higher credit limit is an easy way to improve their credit rating, but it’s not that simple.
You will see a hard credit check. If Chase automatically increases your credit limit, he won’t do a strict credit check. If you ask for the increase, however, Chase will do a serious credit investigation. This will temporarily lower your score, which may offset any usage benefits.
You are desperate. Think about why you are asking for an increase in the limit. “If you’re trying to increase your credit limit because your cards are at max or you have very high balances, now is not a good time to do it,” Griffin says. In fact, you might not even be approved. Your best option is to work on reducing your balances, review your creditworthiness, and then apply for a credit limit increase when you’re in the best position to get approved.
Your debt could increase. A higher credit limit could lead to increased debt. “Too often I see people in this situation see their credit limit go up and then they keep making the same mistake and end up maximizing it again,” Griffin said.
Applying for a credit limit increase with Chase can work in your favor under the right circumstances. If you keep your credit healthy and time it correctly, you could end up with an approval that expands your credit power.