How Much of a Credit Line Increase Should I Ask For?
How much of a credit line increase you should ask for depends on many factors.
In general, it does not do your credit any favors to increase your limit unless the increase is definitely needed.
You should be aware that increasing the limit on one card may impact your ability to increase your others.
How to Increase Your Line of Credit
Generally you can increase your credit limit on a personal line of credit simply by requesting one.
Depending on the increase requested, you may be granted one without heavy scrutiny.
Some banks may also provide you a credit increase automatically if your credit habits are good.
How Much of a Credit Line Increase Should I Ask For FAQs
Line of Credit (LOC) Definition
What Is a Line of Credit and How Does it Work? Revolving vs Non-Revolving
Lines of credit will either remain open, or will close, once the loan has been repaid.
Revolving lines of credit are considered “revolving”because an individual’s credit is replenished when some or all of the outstanding debt has been paid off.
Non-revolving credit usually has a lower interest rate.
How does a Line of Credit Work? Secured vs Unsecured
Credit card loans are almost always unsecured, which causes creditors to take on more risk and is why credit card interest rates are generally higher and the borrowing limits are generally lower than secured loans.
Using Credit Lines More Responsibly
While a high line of credit can be an indicator of a business’ ability to pay, it is important to be cautious about its risks, too. Learn how you can be more responsible with your credit line by connecting to a financial advisor in Terre Haute, IN. If you live outside the area, please feel free to browse through our financial advisor page instead.
Understanding a Credit Line FAQs
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.