Does increasing the credit limit affect the credit score? The answer typically depends on many factors, including how high or low your credit utilization is and what happens after you request a raise.

If you’re considering asking for an increase in your limit, begin by weighing the benefits and potential drawbacks of a credit increase. Knowing when to do so and if you should raise your credit limit is also important to avoid damaging your credit score.

In this article, we explain how increasing the credit limit affects your credit score, what to consider before asking for an increase, and how to boost your credit limit without hurting your score. 

What Is a Credit Limit?

A credit limit is the maximum balance available on your credit card. Card issuers put this limit on your card to represent the maximum amount of credit you are allowed to charge. For example, if the limit on your credit card is $4,000, you can’t charge the card for more than $4,000 unless you get a credit limit increase. Your credit limit is determined by a couple of factors, including:

• Payment history—A strong history of on-time payments on your loans and credit cards indicates that you are reliable and responsible with your finances. If you have a track record of making on-time payments, you may be eligible for a higher credit limit
• Credit utilization—This is the amount of credit you use compared to your total available credit. Lower credit utilization rates indicate that you manage your credit responsibly, leading to higher credit limit offers
• Income level—Earning a higher income makes you eligible for higher credit limits because lenders believe you have a greater ability to repay the debt
• Debt-to-income (DTI) ratio—This ratio compares your monthly debt payments to your total monthly earnings. Having a lower DTI shows you have enough disposable funds to repay your debts, so lenders can offer you a higher limit
• Stability and length of employment—The longer you’ve been employed at a job, the more stable lenders perceive your income to be, which can positively impact your credit limit 

These factors also influence what could ensue when your limit is increased. 

Does Asking for a Credit Limit Increase Hurt Your Score?

Requesting a credit limit typically shouldn’t affect your score, but what happens after your request may do some damage. When you ask for a raise in your credit, you could incur a hard or soft credit inquiry—which is a normal part of a credit application process.

Your card issuer might use a soft or hard inquiry to review your credit history to determine if you’re eligible for a credit raise. A soft inquiry is harmless and does not affect your credit score, but a hard inquiry could cause your credit score to drop a few points. However, a hard inquiry naturally falls off after the second year. 

If your credit increase request is denied, and you incur a hard inquiry, asking for an increase too soon after can negatively and significantly impact your score. Multiple hard inquiries on your account within a short period can harm your credit health. A better option would be to consult your credit card issuer about their procedure for requesting a higher credit limit to learn what it entails. 

Requesting a credit limit increase has both benefits and downsides. Knowing how your request influences your score can help you time it to your advantage or avoid it altogether.

How Does a Credit Limit Increment Benefit Your Score?

Increasing your credit limit may have advantages if you manage your credit wisely. Here’s how it could help:

• Reducing your credit utilization—If you increase your credit limit, maintain your regular spending habits, and make consistent, on-time payments, your utilization ratio will reduce. Experts generally advise keeping this ratio at 30% or less. If the utilization ratio goes higher, your credit score may suffer
• Making it cheaper and easier to get a loan—A higher credit limit assures lenders that you are a responsible borrower. It demonstrates financial stability and responsibility, making it easier to qualify for larger loans. They’ll also offer you lower interest rates, which makes it easy to repay your debts faster, potentially improving your credit score
• Helping you evade credit score dips—According to the FICO^® Scoring Model, opening a new credit card or line of credit may incur a dip in your score. This is because a new credit account is factored into calculating the length of your credit history, which accounts for 15% of your score. Increasing your limit on another card is a better alternative if you want to avoid hurting your score 

How Requesting a Credit Limit Increase Could Harm Your Score

A credit limit increase is often beneficial for your credit score, but there are a few ways it could potentially harm it, including: 

• Potential loan denials—A credit limit increase request may trigger a hard inquiry on your credit report. Although your credit score may dip by a few points, it’s the hard inquiry you should worry about. Multiple hard inquiries on your report signal to potential lenders that you may be in financial distress, which could lead to loan denials
• The temptation to overspend—Higher credit limits make overspending easy, leading to increased debt and a likelihood of higher credit utilization. Your credit utilization significantly impacts your credit score; anything higher than 30% can negatively affect your score
• Increased debt—A higher credit limit may alter your DTI ratio. If you spend carelessly and max out your credit card, you increase your overall debt burden, which may disqualify you from future loans and mortgages

The Benefits and Drawbacks of a Credit Limit Increase 

If you’re considering increasing your credit limit, the table below summarizes the benefits and drawbacks of asking for a raise: 

Benefits of a Credit Limit Raise	Drawbacks of a Credit Limit Raise
Lowers your credit utilization ratio, which improves your credit score	Presents an opportunity to overspend, leading to higher debt
Provides a safety net for unexpected expenses	Creates a potential for increased interest fees if you carry a balance
Allows for larger purchases without exceeding your limit	Makes it difficult to repay high credit limit debts during financial setbacks
Provides increased credit card rewards	Leads to a ding in your credit score if you use a high percentage of the limit

It’s important to carefully weigh the potential benefits and drawbacks before requesting a credit limit raise.

Should You Request a Credit Limit Increase?

Your circumstances and financial goals are the key determinants for whether you should request a credit limit increase. Timing also plays a key role in determining if your request will be approved. This is why you should know when to ask for a raise and what to consider and avoid before you do. 

When To Ask for a Credit Limit Raise

You can ask for a credit limit raise under the following circumstances:

• You want to make a big purchase—A higher credit limit could help you pay for a large purchase over time. However, it’s important to bear in mind that if you don’t pay back what you owe in one billing cycle, your lender may charge a higher interest and ding your credit
• You’re building for emergencies—Having a higher credit limit can help you cover some emergency costs when they occur, but setting up an emergency fund is a wiser financial decision in the long run
• You got a raise—An increase in your income can signify to lenders that you are financially capable of repaying more debt. To be on the safer side, it is good credit practice to only borrow more credit if you need it
• You have a good-to-excellent credit score—A healthy credit score indicates that you manage your existing credit well. If you plan to maintain your spending habits, i.e., not overspend, you can apply for more credit
• You want better loan deals—If you’re using your credit responsibly and keeping a healthy credit score, you have better chances of getting good loan deals when you ask for an increase in your credit limit
• You make on-time payments—Credit card issuers review your credit history before approving a credit limit. If you consistently make on-time loan payments, you have a great chance of getting approved

What To Consider Before Requesting a Credit Limit Increase

Before you ask for a credit limit increase, consider the following scenarios first. Don’t request a credit limit increase if you are in any of these situations: 

• You recently applied for a new line of credit—Applying for new credit and requesting a higher credit limit can both result in a hard inquiry on your credit report. Multiple inquiries of this kind are a telltale sign of possible financial instability
• Your income dipped—If your income suddenly decreases, you may not be approved for a credit limit increase
• You have a bad credit score—Having a below-average credit score lowers your chance of getting a credit limit increase. Consider working with a credit improvement service or a credit building application and practicing positive credit habits to boost your score first 

What To Avoid When Requesting a Credit Limit Increase

After considering the ideal scenarios for applying for an increase and deciding to request one, be cautious to avoid harming your credit health. Don’t make the following three mistakes when applying for a credit limit increase:

1. Skipping payments—Missing a payment is harmful to your credit score. Your payment history accounts for 35% of your FICO Score, and missing a single payment can cause you to lose many points 
2. Overspending—One of the key factors that decide if you qualify for a credit limit increase is how much of your credit you utilize. If you overspend, your credit utilization ratio climbs higher, and anything above 30% could disqualify you. If you’re a big spender, applying for a higher limit could also encourage you to incur more debt, which would damage your score
3. Excessively applying—Applying to many lenders for a credit limit increase at the same time could negatively affect your score. Request a credit limit increase only when necessary

How To Handle Automatic Credit Limit Increases

You may receive an automatic credit limit without requesting it if you have maintained a great credit score for a long time. If your card issuer sees that you’ve increased your spending but still have an excellent credit history, they may choose to raise your limit.

You may also get an increase if you have low credit utilization, repay loans on time, and have a few hard inquiries. The increase often occurs 6–12 months after consistently paying your debts on time. 

If you do not want a credit limit increase, you don’t have to accept it. Ask your credit card issuer or lender to reduce your limit if you are worried about overspending on a higher limit. Note that decreasing your credit limit may negatively affect your credit score, so speak with your issuer about the aftermaths of the reduction before you request it. 

3 Tips To Increase Your Credit Limit Without Hurting Your Score 

Follow these tips to achieve a credit raise that causes minimal damage to your score:

1. Request a credit limit increase directly—Contact your card issuer to request a credit limit and learn more about their process so you can prepare for what it entails. For example, they can inform you that they will make a hard inquiry as part of the process. In this case, you can avoid triggering another hard inquiry while waiting for your increase
2. Keep your utilization rate low and make timely payments—Aim for a 30% credit utilization rate to improve your score. For instance, if you have a credit limit of $3,000, try to keep your balance below $900. Consider using automatic payments to ensure you never miss a payment, which could cause your score to drop
3. Use a trusted credit building solution—Work with a trusted credit building platform like CreditStrong to establish and improve your credit history responsibly. The platform offers different accounts that allow you to build large credit, grow your savings, and decrease your credit utilization rate, which helps boost your credit score 

CreditStrong—Building Credit With Confidence

CreditStrong by Austin Capital Bank is the number one solution for borrowers looking to improve their credit score significantly. If you’re just starting your credit building journey or building back from past damage, CreditStrong offers a reliable way to establish credit. It provides a secured installment loan or a revolving line of credit plus a savings account, encouraging you to save as you build. 

The platform is FDIC-insured, offering complete transparency by working directly with the major credit bureaus—Experian, Equifax, and TransUnion. With CreditStrong, you can track your monthly progress for free through the FICO Scores it provides.

3 CreditStrong Accounts To Know

CreditStrong offers three main accounts to help you improve your score and potentially qualify for a credit limit increase:

1. Instal/CS Max—Instal and CS Max accounts offer a secured installment loan with options for a higher credit limit. You deposit the loan into a secured savings account and make regular payments, both of which are reported to the credit bureaus to build a positive credit history faster
2. MAGNUM—This account includes an installment loan, and it is designed to increase credit scores significantly with low monthly payments. Maintaining consistent, on-time payments on this account can help you boost your score by up to 86 points
3. Revolv—This account is based on a secured revolving credit line that helps you decrease utilization while building your credit and savings. You start with a $1,000 limit with the potential of increasing to $3,000. Revolv can improve your credit score by an average of 62 points

Key Differences Between CreditStrong Accounts

Here’s a table summarizing the main differences between CreditStrong’s main accounts:

Account Type	Credit Limit	Benefit	Ideal For
Instal/CS Max	Varies	Establishes initial credit	Consumers with no credit or rebuilding credit
MAGNUM	$5,000–$10,000	Builds credit with low utilization	Individuals who want to improve credit utilization
Revolv	$1,000–$3,000	Significantly boosts credit score	Users who want a big score jump

How To Get Started With CreditStrong

To get started with CreditStrong, you’ll need to create an account. Follow these steps to open one:

1. Click here to get started
2. Choose from any of the account options that fit your goals:
   • MAGNUM—Starting at $30 a month
   • Revolv—$99 a year
   • Instal—Starting at $28 a month
3. Provide the required information to open a CreditStrong account
4. Track your progress, savings, and payments via your dashboard

CreditStrong helps improve your credit and can positively impact the factors that determine 90% of your FICO score.

Start Building credit today