Boost your credit score by raising your credit card spending limits

Methods to increase spending limits and their effect on your credit score

12:51 23 August 2014

Raising your credit card limits is the most dependable method of improving your credit score. You can raise your credit card limit either automatically, or by requesting for the increase, or by transferring card limit from another account. Many people are however unaware of these avenues and thus don’t act to raise their limits. 

 

Below is how each method can have an effect on your credit score.

 

A.Automatic Raise

 

Credit card providers periodically checks customer accounts to decide whether a customer deserves a raise in credit limit. The card provider will automatically raise the credit limit without notifying the card holder if threshold is met.

 

Automatic raises are common with credit cards reflecting low limits. The card issuer is not likely to give an automatic credit raise to a card owner who already enjoys greater limit.

 

Automatic credit limit raises do not have a negative effect on credit scores.

 

B.Request credit limit increase online

 

You can ask for a limit increase if your provider doesn’t voluntarily apply it on your card. You can do this via the online platforms provided by many companies. You will provide details ranging from your annual income to your monthly housing bills. While some will ask for your preferred limit, others will give you a raise based on factors which includes their own risk formula and the details you furnish them.

 

If you are doubtful, you can contact your card provider to firstly enquire if they can give a limit raise on request, and then proceed to request in their portal.

 

C. Card limit transfers 

 

Many credit card providers offer the option to transfer a part of the spending limit a credit card to another account so long as both credit card accounts are issued by the same provider. 

 

Card limit transfer is risky because it can negatively affect your credit score. Purchasing a new credit card and closing it eventually will cause a fall in your credit scores.