How to Increase Your Credit Limit With Chase

A credit limit increase (CLI) gives you increased spending power and more leeway to keep your credit utilization ratio in check. Chase credit limit increases may happen in two main ways. One is when the bank decides to boost your credit line on its own, and the other requires you to request an increase.

If you request a credit limit increase, you can expect Chase to carry out a hard inquiry, which can temporarily cause a dip in your credit score. If Chase denies your CLI request, find out why and follow remedial measures to correct the situation. Once you do, you may request a credit limit increase again. Alternatively, you may consider applying for a new card.

• How to Increase Your Credit Limit With Chase
• What Are the Benefits of Having a Higher Credit Limit?
• When Should I Request a Credit Limit Increase?
• Reminders Before Requesting a Credit Limit Increase
• What to Do if the Request Is Denied

As with most other credit card providers, there are different ways to get a credit limit increase for your Chase card. In some cases, Chase provides automatic credit limit increases to its cardholders. It also gives you the ability to request an increase over the phone. Unfortunately, Chase does not currently accept online credit limit increase requests.

Chase checks its credit card accounts periodically to send targeted marketing offers. If you’ve maintained a Chase credit card for a while, have made all your payments on time and have a good or excellent credit score, Chase may offer an automatic credit limit increase. If this happens, you will receive notification via a letter or on your credit card statement. An automatic CLI typically results in a soft credit inquiry.

Chase may consider your account for an automatic CLI in as little as six months, although this may also extend to 12 months. For instance, Chase states that Slate Edge cardholders might qualify for an automatic increase in their credit limits by spending at least $500 in the first six months and making payments on time.

Irrespective of how good your credit score is and how well you manage your Chase credit card, there is no guarantee of an automatic Chase CLI. As a result, if you have held your card for a year or more, you may consider requesting a CLI on your own.

You need to call Chase to request a credit limit increase because it does not accept online requests. You may call the number on the back of your Chase credit card. Or you may also call Chase Customer Service at 1-800-935-9935.

When you request a Chase credit limit increase, the customer service agent may ask questions about your finances. Expect to answer questions about why you want the increase, your existing financial situation, your current employment status and your creditworthiness. This information helps Chase determine whether or not to approve your request. Depending on the specifics of your situation, you may receive Chase’s decision immediately, or you might have to wait for up to 30 days.

When you request a credit limit increase, Chase may initiate a hard credit inquiry. A hard inquiry is when a lender pulls your credit report from one of the top three credit bureaus. This will cause your credit score to drop by a few points in the short term, but if you handle your credit in a prudent manner, the impact will be temporary.

It helps to have the reasons for your CLI request in place before you make the phone call. Besides, it’s crucial that you emphasize why you deserve the increase as opposed to why you need it. For instance, if you've been a longstanding Chase customer and have always made your payments on time, this is something you may want to mention at the very beginning. This is also the case if you’ve received a recent promotion or a pay hike. Being well-mannered and respectful during the call is the obvious way to go.

Getting a new Chase credit card adds to your overall credit limit. This may help improve your credit utilization ratio and, thereby, your credit score. Your credit utilization ratio refers to the amount of credit you’ve used from your total available credit.

For example, if the total combined credit limit through all your credit cards is $10,000 and you’ve used $5,000, your credit utilization ratio is 50%. This number should ideally remain below 30%. If your new Chase card comes with a $5,000 credit limit, your total available credit increases to $15,000. If you don’t add more debt, your credit utilization ratio drops to 33%.

You may expect your credit score to drop slightly when you apply for a new Chase credit card because the bank carries out a hard credit inquiry. However, the negative effect is temporary, especially if you maintain healthy credit habits.

Chase offers a wide array of credit cards designed to meet various needs. The different types of cards you have to choose from include travel cards, rewards cards, cash back cards, balance transfer cards and student cards. Its travel cards come in the form of co-branded and non-co-branded cards that earn points and miles while offering benefits catering to frequent travelers. Several of its cards also qualify as no-annual-fee cards.

The credit limit you might qualify for through your new card depends on your creditworthiness, your income and any predetermined card-specific minimum/maximum limits.

Chase follows an unpublished rule that limits your ability to get a new Chase card based on how many cards you’ve received in the preceding two years. According to this rule, Chase will reject your application if you’ve opened five or more credit card accounts in the last 24 months. This applies to cards from any issuer, not just from Chase. However, since most business cards are not part of your personal credit report, they don’t factor in this rule.

Additionally, some Chase credit cards limit bonus eligibility if you have a similar card open or have received a bonus from that card in the last 24 to 48 months.

>> More: Best Chase Travel Credit Cards

If you get a credit limit increase, you may see an improvement in your credit score. However, this is only the case if you handle your available credit in the right manner and do not build excessive debt.

>> More: The Practical Guide to Improving Credit Fast

If you’ve not had your Chase card for a while, you might not qualify for a credit limit increase, and it is best that you wait at least six months after getting your card before requesting one. Asking for a CLI if you get a raise might work well for you, and the reverse may be true if there has been a dip in your income.

It’s important that you look at your credit score before requesting a CLI. This is because the odds of approval improve if you have good or excellent credit. If you have average credit, you might want to improve your credit score before you request an increase. Bear in mind that Chase, like other card issuers, has been known to reduce credit limits in some instances.

It’s important that you take your financial situation and your ability to repay debt into account before you request a credit limit increase through Chase. This is because credit cards tend to come with high interest rates, and carrying balances from one billing cycle to the next can be an expensive proposition. This aspect requires your particular attention, given that around half of all credit card users in the U.S. maintain revolving balances in their accounts.

>> More: What Is a Credit Limit and What Factors Determine It?

Ask yourself a few basic questions before you request a credit limit increase to determine if you should move forward. If you end up seeing more red flags than green signals, you might want to take corrective measures before requesting an increase.

Take a look at your existing credit limit and the outstanding balance on your credit card account. The amount you owe plays a role in whether or not you might qualify for an increase. For instance, if you’ve already used $8,000 from your card’s $10,000 limit, Chase might not be inclined to increase its limit.

The amount you’ve borrowed from your total available credit limit has a direct bearing on your credit utilization ratio. With the same example of you having used $8,000 from your card’s $10,000 limit, your credit utilization ratio is 80%. For Chase to view your CLI request favorably, this number should ideally be at or below 30%.

When you request a CLI, Chase takes a look at your credit report to arrive at a decision. As a result, it’s best that you check your credit score ahead of time. Chase credit cardholders and non-Chase customers may use its Credit Journey tool to check their Experian-issued VantageScore for free. Alternatively, you may view your VantageScore or FICO score for free by using different credit score review websites. Bear in mind that the better your credit score, the higher the odds of approval.

>> More: Does Requesting a CLI Hurt Your Credit?

Determine how much of an increase you want before you submit your CLI request. If your card’s existing credit limit is $10,000, you stand a better chance of getting Chase to increase it to up to $12,500 than to $20,000 or more. Typically, you should seek an increase of around 10% to 25% of your card's existing limit. Asking for too high a limit might raise doubts about your ability to repay and may result in the request being denied.

Chase might deny your CLI request based on your account history, creditworthiness or income. If Chase denies your request because of your credit score/history, you may expect to receive an adverse action notice that specifies the reason. If it denies your request based on any other factor, you may consider calling and finding out where you fell short. You may also ask Chase to reconsider your request, especially if you think Chase might have declined it erroneously.

Once you know the reason, you can take measures to fix the problem and then consider applying again. For instance, if you’ve already received a credit limit increase in the recent past, you might simply have to wait for more time. You also have the option of applying for a new credit card.