Chase Increase Credit Limit: How to Score a Chase Credit Line Increase

chase-increase-credit-limit

How to Tips – 6 Ways to Score a Chase Credit Line Increase 

A Chase increase credit limit might be easier to get than you think.  The national average credit limit is a little over $8,000 dollars.  However, cardholders can qualify for a credit limit several times higher.  Having a credit card with a high credit limit offers more than just spending power. Larger limits can boost your FICO credit score.  Also, a higher score can make it easier to finance other major purchases, like a car or a home.  It can even help you get lower interest rates and better credit terms in the future.

Are you interested in learning how to increase your Chase credit limit?   JPMorgan Chase & Co., known simply as Chase, is one of the most popular major credit card issuers in the world.  They provide a wide and diverse offering of rewards credit cards. And, increasing your credit limit can potentially deliver positive results to your credit report as your credit utilization ratio decreases. There are tips you can follow to increase your chances for a positive response. Chase provides a couple of options to request an increased credit line.  Tips and procedures are outlined below.  Another option is to apply for a new Chase credit card with a higher limit!

Why Your Credit Limit Matters 

Lenders look at one or more of your credit reports and scores to determine your credit-worthyness.  Your credit report is obtained from one – or all of the three credit bureaus: Experian, Equifax and TransUnion. Your credit limits and credit utilization ration can have a big impact in determining your credit scores.

Aside from paying all your bills on time, the biggest component in credit scores is your credit utilization ratio.  This is simply the percentage of available credit that you have available for use. Lower credit utilization is generally better for credit scores.  Your credit utilization rate, sometimes called your credit utilization ratio, is the amount of revolving credit you’re currently using divided by the total amount of revolving credit you have available. In other words, it’s how much you currently owe divided by your credit limit. It is generally expressed as a percent.

For example, if you have a total of $10,000 in credit available on your credit card, and a balance of $5,000, your credit utilization rate is 50%.  You’re using half of the total credit you have available.  If you were to get a credit limint increase to $20,000 (or another credit card with a $10,000 limit), you would instantly cut your credit utilization ratio in half.  It would drop from 50% ($5,000 used against a $10,000 limit) to 25% ($5,000 used against a $20,000 limit).  That’s a pretty impressive improvement.  So you see, increasing your credit limit can offer significant advantages under the right circumstances.

Chase Increase in Credit Limit – Eligibility Requirements 

There are no strict requirements for a Chase credit limit increase. However, there are some common-sense rules of thumb to improve your eligibility. You are more likely to qualify for a credit line increase if the following :

  • Good track record of on-time payments
  • No missed payments 
  • You have used your card responsibly.
  • You’ve had your account open for at least six months – a year is even better.

Any bank requires that trust be established before granting you a higher credit line.  They want to see that you always make your payments ontime and you use it responsibly. If you’ve demonstrated that you are responsible, it signals to Chase that you can handle a higher limit.

Similarly, you can build a better reputation with a bank by demonstrating these traits over an extended period of time. The longer you have an account open with Chase, the more data they have that you are a responsible cardholder. Also, it is not likely that much has changed on your credit report if you applied for a card less than six months prior.  The bank used that credit information in its initial evaluation and approved you for the card at your current credit limit.  Show a little common sense and patience before requesting a credit limit increase.  Six months to a year is about the right amount of time.

How is my Chase Credit Limit Determined? 

Chase will use multiple factors when determining the amount of your credit line, including:

  • Income. A high, steady income is the best way to open the door for a high credit limit.
  • Creditworthiness. Show your bank that you can pay off all of your debt. A high credit score and a clean credit history of on-time payments is the best proof.
  • Relationship with Chase. Get rewarded for your loyalty. Having a long-term relationship with your card issuer is another plus to help you get a higher credit line.
  • The type of card you apply for. Apply for a high-end credit card to get a higher credit limit. Cards like Visa Signature or Mastercard World Elite usually start off with a high minimum credit line of $5,000.

Best Practices For Getting an Increased Credit Limit 

In general, if you are a steady, loyal customer, you have good chances of getting your desired credit limit increase. Here are a few things the bank will be looking at:

  • Have you been a customer for at least 6 months?
  • Do you pay off your bill in full and on time every month?
  • Are you using a reasonable amount of your current credit limit, or is it maxed out?
  • Credit utilization, meaning the percentage of credit you have that you are using, should be under 30%.

If you are a brand-new customer or have late or partial payments, your chances of getting a credit limit increase are slim.  Clean up you payment history and wait a while to try for an increase.

Before you Request a Chase Credit Limit Increase… 

Before you pursue a credit limit increase, you should make sure you have all the information you need to complete the process successfully.

First, you should decide how high a credit line you’d like to have. In general, it is recommend that you avoid asking for too much at once.  Unless you are very confident in making your case for a big increase, like a huge promotion. Otherwise, stay away from trying to double your current limit.  Instead, come up with a number that works for your without asking for too much too fast. Also, ensure that you aren’t asking for more than you’d be able to pay off .  These steps will boost your chances of approval and minimize your risk of putting yourself in debt.

Also, pull your credit report so you know your credit score before you request a higher credit line. If you know how you look to lenders, you can make a better case for why you deserve a higher limit. Plus, you’ll see any late payments or negative marks that might cause your request to be denied.  You can check your credit score online with plenty of free services, including Credit Journey – which comes with your Chase account. Additionally, you can pull one free credit report per year from each of the three major credit bureaus at AnnualCreditReport.com.

If you’ve been making minimum payments and carrying a balance, you might want to switch things up before requesting a credit line increase. Paying your balance down is a good strategy.  An issuer will be more likely to grant you a higher credit limit if you demonstrate the ability to pay back what you borrow.

Know Your Current Credit Limit 

It’s good to know what your current credit limit is before you request a credit limit increase. You may find you have a higher limit than you thought once you check.  You can find your credit limit in your online Chase.com account.  Just log in to your account, and click on the credit card you would like to check.  This should be located on the left-hand side of your screen.  You will see your credit card information in the main section of the page once you select your credit card. Look for your current balance and available credit. These 2 numbers combined will give you your total credit limit for that card.

  • Current balance: This is the amount you have charged since your last statement.  However, it might not include your most recent transactions.
  • Available credit: This is the remaining amount of credit you have left on your card. Your available credit is updated each time you make a payment.

6 Best Ways to Increase your Chase Credit Limit 

Once you are armed with knowledge of your credit score and payment history, you are ready to request a higher credit limit. As it turns out, there are a few different ways to get a higher credit line from Chase.  The process for increasing your Chase credit limit is pretty straightforward. With several ways to go about it, you should be able to submit your request and have a decision .pretty quickly

1. Wait for an Automatic Credit Line Increase

Periodically, Chase might increase your credit limit without you putting in a request. Many issuers regularly review their accounts.  Since they are in the business of issuing credit, it is in their interest to offer increases to reliable card holders.  Therefore, Chase could offer you a boost just for making on-time payments and using your card responsibly.  However, there is no guarantee they will make such an offer.  Chase does not disclose a timeline as to when they review accounts.  The good news is that an automatic credit limit increases does not result in a hard pull to your credit.  By your payment history, the issuer can determine if you qualify for an increase with the information they have available.

Chase and other credit card lenders will pull your credit for regular account maintenance or in order to send you offers for bank products.  These offers might include new credit cards or balance transfer promotions.  Credit inquiries like this are considered soft pulls, so they don’t impact your credit. If Chase decides to increase your limit after reviewing your account, you’ll get the increase without your credit score being affected.

Even if you’re a loyal customer, and pay your balance in full every month, an automatic increase still may not happen on its own. The timing of these promotions vary from issuer to issuer.  If you can’t wait — or don’t want to wait — to be considered for an automatic credit-limit increase, you can initiate the process yourself.  There are a couple of ways for you to reach out to Chase directly.

2. Targeted Offers Online

Chase, loyalty programs, and other credit card companies may offer exclusive promotions to select customers.  These targeted offers are based on a variety of factors, such as spending habits, credit history and geographical location. Targeted offers can include increased sign-up bonuses, exclusive discounts and more.  You might be able to score a targeted offer by logging into your account and checking what’s available. You can log in to your account here to see if you have any current offers from Chase.

If you don’t receive a targeted offer, however, you’ll have to complete your credit limit request online or over the phone.   Don’t worry, just because you don’t have a targeted offer does not mean you won’t be approved for a higher limit on your current card.  Chase seems to extend such offers on a relatively limited basis.  Once again, a targeted offer does not result in a hard pull to your credit.  The issuer has already determined that you qualify with the information they already have on hand.

3. Request an Increase Online

If you received a valid offer from Chase for a credit-line increase, you can visit the Chase credit-line increase webpage to submit the information form. If you did not receive an offer, you can still log into your account online.  Once logged in, you can send a secure message to a Chase representative. If you visit the link without receiving a valid offer for an increase, you may be instructed to call the number on the back of your card.

By submitting a request for a credit-limit increase, you authorize Chase to obtain a copy of your credit report to determine if the request can be approved. Since you’re making the request, the inquiry into your credit will be a hard pull, which could impact your credit score.  Regardless of how you go about it, you’ll need to provide some basic information for the request to be processed. This information includes personal details, such as:

  • Total gross annual income
  • Monthly housing payment amount
  • Employment status
  • Annual non-taxable income (if applicable)
  • Total credit line you’re requesting

Once this information is received and reviewed, you’ll typically be notified by email with Chase’s decision. The decision is usually made quickly.  However, it can sometimes take up to 10 business days for the determination to be made.

4.  Call Chase Customer Service

The most common way to get a credit limit increase with Chase is to call the number on the back of your card and request one. You should be prepared to make a case for why you deserve the increase.

The representative will likely ask you why you need more credit, so have all the information you gathered beforehand ready to go. Mention any changes to your situation that might warrant a higher credit limit.  This would include a raise in your income or a balance you’d like to transfer. You can also take advantage of your positive history with Chase.  Positive factors are how long you’ve been a customer and your reputation for on-time payments.

Things to keep in mind when asking for an increase

  • Be ready to tell them why you should qualify for a credit limit increase. Factors like being a long-term customer, paying your bill on time, or a recent income increase are all good things to mention when making your request.
  • Know what you want. If your current credit limit is $1,000, don’t ask for a $10,000 limit! You are more likely to get the increase you’re looking for if it a reasonable amount. A good rule of thumb is to ask for a 10%-25% increase.
  • Offer to move credit. If you already have a large amount of credit from Chase, you can often move credit around from one card to another to get an increase on a specific card. If you are opening a new account, offering to take credit from one card to put towards the new one can help get you approved.
  • Be polite. This one is simple, but it still counts. The person on the other end of the line is just doing their job, so it’s never a good idea to be rude if you don’t get what you want.

If the customer service representative believes you can qualify for a higher credit limit, they will probably pull your credit report to confirm any new information and review your eligibility. You should prepare for a hard pull to your credit, which can result in the temporary loss of a few points from your score.

5. Request an increase with an Account Representative over the phone

You can also speak with a Chase representative to initiate the request. Start with the number on the back of your card. You might also find these phone numbers helpful:

  • Personal Credit Cards – General Number:  1-800-432-3117
  • Business Credit Cards – General Number: 1-888-269-8690

Before you make the call, be prepared to explain why you deserve a higher limit. You can use talking points like your history of on-time payments, frequent use of the card, improved credit score, or an increase in income. Remember that credit card issuers aren’t obligated to approve your request, so ask for an increase in a courteous manner.

You’ll still need to provide the same personal information as you would if you were making the request online. And just like an online request, Chase will still need to do a hard credit pull to check your credit.

6. Choose a New Chase Credit Card with a Higher Credit Limit

Another way to increase your credit is to secure a new Chase card with a higher limit than your existing card. You may even be able to reallocate a portion of the new credit amount to the card you originally wanted increased. Of course, this should only be done if adding a new credit card makes sense for your financial situation.

If you’re approved for a new card but still want to increase the limit of another, Chase sometimes allows available credit to be transferred from one card to another. Call and speak with a representative and ask if they can split the existing balance between both cards.

Commonly asked questions about Chase credit line increases

When can I ask for a credit increase with Chase?

There’s no hard rule when it comes to the “right” time to ask for a credit limit increase. In general, you’ll want to hold out on requesting an increase until you’ve demonstrated responsible credit card usage for at least six months.

Does Chase pull my credit when I request a credit limit increase?

When requesting a credit limit increase, Chase may review your financial information, including your credit report, before making a final decision on your request. However, if Chase performs an automatic credit increase that you didn’t request, it may have performed a “soft” credit inquiry, which doesn’t negatively affect your credit score.

Would Chase ever lower my existing credit limit?

Yes, this can happen. Chase reserves the right to decrease your credit access limit at any time, if it deems a reduction necessary.  However, this is a pretty rare occurrance.

What happens if I request a credit limit increase and Chase says no?

If Chase declines your request for a credit limit increase, your card’s existing credit limit will still remain. If you feel like you were declined in error, then you may want to contact the Chase card support number located on the back of your credit card to see if Chase will

Bottom line 

Whether you need the extra credit for a large purchase or want to lower your credit utilization to improve your credit score, increasing your credit limit is not only possible — it’s easier than you think.

You may be trying to boost your credit score by lowering your utilization, finance a large purchase a little higher than your current limit or transfer a balance to a card with a lower APR.  All of these reasons make requesting a credit limit increase from Chase a great move. Of course, you should do your research and carefully consider why you want a higher limit before you make the call. You don’t want to tempt yourself into taking on unnecessary debt.  Never take on debt that is beyond your ability to pay.

Leave a comment

Your email address will not be published. Required fields are marked *

Finance Blog Directory Viesearch - Life powered search