Increasing your credit limit, also known as a credit access line, won't necessarily hurt your credit score. In fact, you might improve your credit score. How you utilize the credit access line after the increase is one of the multiple factors that can impact your score.
Does requesting a credit increase hurt your score?
Your credit usage, or credit utilization ratio, could impact your credit score. Your credit utilization ratio is the amount you owe compared to your credit limit. It's generally recommended to keep your credit utilization ratio below 30 percent but the lower, the better for your credit score.
Credit scores factor in both your overall credit utilization and your credit utilization on each individual card. So, it's important to keep both of these figures low.
Increasing your credit limit lowers your credit utilization ratio. If your spending habits stay the same, you could boost your credit score if you continue to make your monthly payments on time. But if you drastically increase your spending with your increased credit limit, you could hurt your credit score.
You might also see a temporary dip in your credit score following a credit limit increase. That's because a hard credit inquiry could be triggered to ensure you meet the standards to receive a higher limit. Inquiries can have a minimal impact on your credit score, but too many inquiries can result in a temporary decline in your scores. The older an inquiry is, the less impact it'll have.
When to ask for a credit limit increase
- You just got a raise: An increased income may raise your credit limit and credit utilization ratio. Greater income may show credit card issuers that you have greater financial security.
- You've been a reliable customer: If you make your payments on time and you have a low credit utilization ratio, you're more likely to have your request approved, since both of these may give you a higher credit score.
- Your credit score is in the good or excellent range: Your creditworthiness is a big factor in determining your eligibility for an increased credit limit. You can access your estimated credit score through the Chase Credit Journey Score Simulator online or download the Chase Mobile® app.
When you may want to wait to ask for a credit limit increase
- You recently applied for a new line of credit or requested an increase with another creditor: You may experience a hard credit pull if you apply for a new line of credit, and there's a good chance you'll incur a hard credit inquiry for the requested credit limit increase. A flurry of hard credit pulls can not only damage your credit score but also signal financial distress.
- You've transitioned to a lower-paying job: You may not be approved for a credit limit increase if your income has decreased.
- Your credit isn't good or excellent: If your credit score isn't in the best shape, you may not be approved for a credit limit increase. Consider working to boost your credit score before asking for a credit limit increase.
How to ask Chase for a credit limit increase
To request a credit limit increase, call the number on the back of your Chase credit card. Chase does not currently allow credit limit increases to be submitted online. The request is subject to approval.
Automatic credit limit increases
There's a chance you won't need to ask for a credit limit increase to get one. If you're not in a rush to get a credit limit increase, think about waiting until you're offered an automatic increase. If you have a history of making on-time payments, you may earn an increased credit limit.