After you’ve been a cardholder for a minimum of six months to one year, some issuers will automatically increase your credit limit if they feel you are a low credit risk.
If you remain in good standing with the issuer, this may occur periodically throughout the time you remain a cardholder.
How often can you increase your credit limit?
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.
Does credit limit increase automatically?
Automatic Credit Limit Increase
Some credit card issuers automatically raise your credit limit as you handle credit responsibly. That means charging only a manageable percentage of your total credit limit and making your payments on time each month.
Why do credit cards increase your limit?
Credit limit increases typically come after you’ve displayed good financial behavior – like paying all your bills on time. When you only pay the minimum amount due it means you’re paying interest on the remaining balance. This is how the credit card companies make money.
Is it good to accept credit card limit increase?
When you accept a credit limit increase, as long you use it responsibly and forgo increasing your spending, it will reduce your credit utilization. Theoretically, the lower your credit utilization, the higher your credit score should be.