Ever heard of a credit limit?

Also known as a credit line, a credit limit is the maximum amount of money you can spend before you need to pay off some of your credit card’s balance. It can range from a few hundred dollars to tens of thousands of dollars, depending on the credit card and user.

Your credit limits matter more than you think, and not just because they affect how much you can spend. More importantly, your credit limits matter because of the effect they can have on your credit scores.

Read on to discover how increasing your credit limit might improve your credit score. We’ll also reveal strategies that might help you qualify for a credit limit increase, no matter the credit card company.

Why Does Your Credit Limit Matter?

When lenders consider your creditworthiness, they look at one or more of your credit reports and scores from the three major credit bureaus: Experian, Equifax, and TransUnion. Your credit limits can play a big role in your credit scores.

It’s critical to pay all your bills on time. Yet your credit utilization ratio, aka the percentage of available credit that you use on credit cards, is another huge factor in your credit scores. Lower credit utilization is generally better for credit scores.

To demonstrate how credit utilization works, let’s look at the following scenarios:

Harry has one credit card with a $5,000 limit. His balance is $2,500. Therefore, his credit utilization ratio is 50 percent.

Meghan has two credit cards, each with a $5,000 limit. Her total credit card limits equal $10,000. Meghan’s credit card balances also total $2,500. However, because she has a higher credit line, her utilization ratio is only 25 percent, which could be better for her credit.

How can Harry catch up? Of course, paying down his credit card balance is a great move. Doing so could potentially both lower his credit utilization ratio and save him money on interest. But if Harry can’t afford to pay off his credit card balance, there is another way to lower his credit utilization ratio as well. He can either apply for a new credit card, or he can request an increased credit line with his current credit card.

In this article, we’ll go over both strategies for reducing your credit utilization. We will also explore the second approach, asking for a credit limit increase, in detail. We like the credit limit increase strategy because it allows you the chance to lower your credit utilization even if you don’t have the funds to pay off your credit card balance at the moment. And lowering your utilization, no matter how you accomplish that goal, has the potential to improve your credit scores.

What Should You Know Before Increasing Your Credit Limit?

Before diving in, we want to share a few words of caution:

Credit card debt is never worth it. If you don’t think you’ll be responsible with your new credit — paying on time and paying at least any new charges in full each month — you probably shouldn’t try to get a higher limit. (Seriously, those Coachella tickets can wait.)

If you don’t think you’ll be responsible with your new credit — paying on time and paying at least any new charges in full each month — you probably shouldn’t try to get a higher limit. (Seriously, those Coachella tickets can wait.) Only apply for a credit limit increase when it makes sense. A good time to request an increase is after you get a raise, since lenders consider your income when they set credit limits.

A good time to request an increase is after you get a raise, since lenders consider your income when they set credit limits. Try a rewards card. If you just want to improve your credit utilization ratio, you could apply for a new card (with a signup bonus!). Then, once you earn your bonus, you can apply those funds toward your existing credit card debt to help dig yourself out of the hole. Here are some of the best credit cards for earning cash back and reward points.

If you just want to improve your credit utilization ratio, you could apply for a new card (with a signup bonus!). Then, once you earn your bonus, you can apply those funds toward your existing credit card debt to help dig yourself out of the hole. Here are some of the best credit cards for earning cash back and reward points. You may only get so much credit. Each credit card issuer may only be willing to extend a certain amount of credit to you, across all your accounts. So, a credit limit increase on one card could take away your ability to increase your limit on other accounts or open new accounts. This is why transferring a credit limit from one card to another might make sense.

Finally, if you haven’t yet established credit history, none of this really matters. Start by building good credit scores from the ground up.

Insider tip Confused about all the numbers on your credit card bill, like your available credit, minimum due, and statement balance? Read our guide to paying credit card bills to become an expert.

How to Get a Higher Limit on Your Credit Card

Ready to increase your credit limit? There are two basic strategies: a slow way and a fast way. We’ll explain both below.

Method 1: Wait for Automatic Credit Card Limit Increases

Many credit card companies increase your credit limit automatically, without you having to lift a finger.

If you demonstrate that you’re a responsible credit card user, and use the card enough to warrant a credit limit increase, you could get a higher credit line as frequently as every 6 or 12 months.

You can increase your odds of getting an automatic credit limit increase by:

Building a positive payment history, never making late payments, and never causing payments to be returned.

Using the card frequently, which generates swipe fees for the bank. If you don’t use the card often, you likely won’t be offered a credit limit increase.

Luckily, automatic increases won’t generate a hard inquiry on your credit report, as you must agree to those beforehand.

Method 2: Request a Credit Limit Increase

Don’t want to wait for your card issuer to increase your credit limit (or not) on its own? Here’s some information you might not know. You can contact your credit card issuer directly to request a higher credit line.

Requesting a credit limit increase runs the gamut from super simple to involving a little bit of legwork. Bank of America, for example, includes a request link in your online account. Chase, on the other hand, requires you to call customer service to initiate a request.

(For instructions on requesting increases with specific credit card companies, see the list below.)

Before you contact your card issuer, however, note that a credit card limit increase request often results in a hard inquiry on your credit reports. After all, the issuer is considering you for a larger line of credit. So, the process is similar to applying for a credit card.

Although a hard inquiry might lower your credit scores slightly (though not always), any negative effect is often outweighed in the long run by the benefits of a higher credit limit. (Remember that credit utilization ratio we discussed earlier?) Also, hard inquiries will only affect your FICO credit scores for one year. After two years, the hard inquiries will disappear from your credit reports, too.

Insider tip Are you looking for a high credit limit to help lower your overall credit utilization ratio? If so, you might want to consider opening a new credit card instead. A new account will likely give you more available credit.You can also take advantage of any introductory bonuses offered by the card issuer.

When you submit a request for a credit limit increase, your card issuer might ask for your annual income or monthly housing payment. It can use that information to help evaluate your risk as a borrower.

Then, your issuer will make one of three decisions:

Agree to your credit limit increase request

Counteroffer with a credit limit increase for a lesser amount

Deny your request for a credit limit increase

In the case of a denial, you’ll usually have to wait a while before trying again. In the meantime, make sure you keep your payment history spotless and continue to use the card often and responsibly. If you really want to improve your credit utilization ratio, you can also try applying for a new card.

How Do I Increase My Credit Limit Online?

When you’re ready to request a credit limit increase, your online account should be your first stop. While every card issuer is different, you may be able to follow these basic steps to make your request.

Log in to your credit card account Find the “Credit Limit Increase Request” link or section (see the our list for issuer-specific details) Fill in all of the requested information

Depending on your card issuer and request, you could be approved or denied immediately. For larger increases, it could take several days to process your request. If you card issuer needs time to process your request, it will notify you of its decision either through an online message or mailed letter.

How Do I Increase My Credit Limit Over the Phone?

If you can’t request an increase online (or would prefer to plead your case over the phone), prepare to share the following information with the customer service representative:

Address and Social Security number

Current employment status

Total monthly and annual gross income

Monthly mortgage or rental payments

Amount of requested credit limit increase

Most importantly, you may need to outline why you deserve a high limit. (The fact you take your grandma to dinner every week is nice, but probably won’t work in this situation.)

Qualifying reasons could include a history of on-time payments, frequent use of the card, an improved credit score, an increase in income, or plans to make a balance transfer to the account.

Once you have all of your information together, it’s time to make the call.

Dial the number on the back of your credit card, or use our listing of “backdoor” card issuer phone numbers. Tell the customer service representative you’d like to request a credit limit increase. You may be transferred to a different representative in a credit risk department. Request your increase in a courteous manner. Remember that credit card issuers aren’t obligated to say yes. The issuer may accept, counter, or deny your request immediately, or say you’ll need to wait for an online notification or letter.

How Large of a Credit Limit Increase Should I Request?

There’s no one-size-fits-all answer to how much of a credit limit increase you should request.

One factor to consider is that the representative may only be able to increase your credit limit a small amount based only on your account history. Larger credit limit increases, on the other hand, will likely require a hard inquiry on your credit report.

If you’re comfortable with a hard inquiry, you might want to start by requesting a credit limit that’s twice the size of your current credit line. If you’re denied instead of receiving a counteroffer, you may have requested too much for that particular credit card company and your current credit level. Next time, try requesting a lower amount.

You should also think about your personal spending habits. What size credit limit can you handle responsibly?

Do you often maintain a credit card balance? If so, you might not want to request a credit limit increase at all. Instead, it may be better to focus on paying your bill in full each month. If an increased credit line is going to lead to increased charges — and higher interest and minimum payments — it’s certainly not worth it.

Should I Request a Credit Increase on My Credit Cards One at a Time or All at Once?

Great question! But, unfortunately, this is another one of those “it depends” situations. (Womp womp.)

The more credit limit requests you make, the more hard inquiries end up on your credit reports. If you have a lot of credit cards, these inquiries could bring your credit scores down in the short term. They could also prevent you from opening new cards, as some issuers deny applicants who’ve had more than a certain number of inquiries in the past two years.

That being said, if you successfully negotiate higher limits on several cards, your credit utilization ratio should go down and your credit score may go up. Any hard inquiries that you did agree to will fall off your credit reports after two years. If you have a few well-used cards with low limits, this approach might be a good start.

The alternative tactic is to request increases for your cards one at a time, perhaps once every few months.

With this tactic, you may build your credit limits over time and space out the hard inquiries. Your credit limits may increase more slowly than with the first method, but the immediate negative impact on your credit scores could potentially be less severe.

In the end you will need to evaluate the pros and cons and choose the approach that works best for your situation.

Can I Transfer My Credit Limit?

If you get denied for a credit limit increase, don’t give up. Another strategy you can try is to apply for a new credit card from the same issuer and, if approved, transfer a portion of your new credit line to your original credit car

To transfer your new credit line to the original card, you’ll need to contact customer service. Depending on the issuer, your credit limit transfer may be approved immediately or you may need to wait days or weeks.

If you already have two credit cards from the same issuer, you can ask to move a portion of your credit line from one card to another.

Imagine you have two Chase cards — one with a $10,000 limit and another with a $20,000 limit. You could ask to transfer $5,000 of your credit line from the second card to the first card, giving both cards a credit limit of $15,000. Since you’re not applying for more credit, and instead are just asking to move your current credit around, you may have better luck with this route.

Keep in mind that moving a portion of your credit line from one card to another won’t lower your aggregate or overall credit utilization ratio. However, it could potentially lower your utilization ratio on one account.

How to Increase Credit Limit With Specific Issuers

Now that you have a broad overview of this strategy, it’s time to get into the nitty gritty of each credit card issuer.

While we can’t predict the future, the following list will give you a good idea of what to expect when you request a credit limit increase from these companies. Note that in most cases, you should prepare for a hard inquiry.

We’ve also included instructions for increasing your credit limit online. If your experience differs from what we’ve written, please let us know!

Insider tip A study recently published by TransUnion had some interesting findings. It found that, in 2016, credit limit increases were 50% more likely in the first part of the year, from January to May. And credit limit decreases occurred at twice the normal rate in January, compared to the rest of the year.

American Express

Amex sometimes uses a hard inquiry.

You must wait 60 days after opening an account to request an increase.

You’ll either receive immediate approval, or a message saying a decision will arrive by mail in 7 to 10 days. (The latter usually means they’re reviewing your request manually.)

You must wait 180 days after being approved for a credit limit increase before requesting another.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in Click “Account Services” in the top navigation bar Click the link to “Increase Your Credit Limit” Enter your desired credit limit and annual income

Bank of America

Will typically do a hard pull on your credit before making a decision. For small increases (under about $2,000), it may only be a soft inquiry.

In some cases, you must be an account holder for at least six to 12 months before you can request a credit limit increase.

Although you can usually make your request online, you’ll need to call customer service if you don’t see the option in your account.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your account online In the Card Details section near the top, look for “Request a credit line increase.” If you don’t see it, click the “Information & Services” tab Click the link for “Credit line increase” towards the left side of the page Enter your total credit line requested and personal and financial information

Barclays

Like many other issuers, Barclays will periodically review your card account to determine whether or not it’s eligible for a credit limit increase.

You can request a credit limit increase or decrease online, and usually will receive a decision instantly.

You must wait four months after your credit limit is increased before requesting another increase, and you must wait six months after a limit decrease to request an increase.

If you’re not approved for the increase you request, Barclays may offer a smaller increase instead.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your account online Click the “Services” button in the navigation bar, and then select “Request credit line increase” from the pop-up menu On the next page, click the link to “Request a credit line increase” Enter your occupation, employer, length of employment, additional credit requested and total annual income

Capital One

Capital One allows credit limit increase requests at any time, though it generally declines requests from accounts that haven’t been open for at least six months.

In many cases, you’ll receive a letter with the decision in approximately 10 business days.

Some Capital One cards will automatically increase your credit limit after you make your first five payments on time, like the Capital One® Platinum Card (Review), QuicksilverOne® Card (Review) and Journey® Student Card (Review).

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your account online In the “Card Services” menu, click the “Request Credit Line Increase” link Enter your total annual income, employment status, monthly housing payment and monthly spend with credit cards

Chase

Usually employs a hard credit inquiry.

Though Chase used to allow customers to request credit limit increases online, you must now call the number on the back of your card.

Citi

If you request a credit limit increase through your online account, you’ll either be instantly approved or sent through to a manual review. (If you’re rejected, it may be the result of a recent increase.)

In a manual review, you may have to restate your income and list additional bank account information so Citi can check your balances.

If you agree to a manual review, it will require a hard credit pull.

You can also choose to wait, as Citi may provide automatic credit increases periodically.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your account online Click the “Account Management” link in the navigation bar near the top Click “Request a Credit Line Increase” Enter your total annual income and monthly housing payment

Discover

Discover may allow you to request a credit line increase for a specific amount.

It will start with a soft inquiry, and may approve you instantly. In that case, you may be given a maximum amount by which you can increase your limit (you can opt for a smaller increment, if you prefer).

If you’re not instantly approved, Discover will perform a hard inquiry.

If you don’t want the hard inquiry, you can choose to cancel at this step and then just wait, as Discover typically increases credit limits over time for responsible users.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your online account Hover over the “Manage” button in the top navigation bar, then click “Credit Line Increase” Enter your total annual gross income, total available assets, employer name and monthly housing payment

U.S. Bank

Performs a hard inquiry for credit limit increase requests.

You may be able to request an increase online. If you don’t find a link in your account, you’ll need to call customer support.

You can decrease your credit limit by calling customer support, too.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your online account Select the “Customer Service” tab Click “Self Service” Click “Manage My Accounts” Click the link for “Credit Limit Increase” Enter your income, source of income and monthly housing payment

USAA

Conducts a hard inquiry.

You can request an increase online or over the phone.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your online account Send a message to customer support through the online Message Center Include your income and desired credit limit

Walmart

Some people report getting automatic credit limit increases over time, while other people report having their credit limit decreased. Monitor your account carefully to see what happens to you.

ONLINE CREDIT LIMIT INCREASE REQUEST

Log in to your online account Click the link to “Request a Credit Limit Increase” Enter the required information

Wells Fargo

You may be eligible for a credit limit increase after your account has been open for at least a year.

To request an increase, you must call customer service. You can try asking the representative to only do a soft inquiry. If they refuse, you can try hanging up (politely) and calling back.

Besides paying off debt, increasing your credit limit is one of the quickest and easiest ways to improve your credit score. If you don’t want to wait for your credit card issuer to make the first move, try the strategies above (and let us know how it goes!).