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You know the old joke about how it's easy to get a bank loan as long as you don't need one? Well, the same logic applies to getting your credit limit raised. In fact, it's almost automatic.
Want a higher credit limit on some particular credit card? It's easy:
- Charge enough on the card that your balance approaches half the credit limit.
- When the bill comes, pay the card off in full.
- Repeat for three or four months.
That's all it takes. You probably won't even have to ask for an increase.
The reason is that savvy customers know that issues such as credit holds make it problematic to approach even half of your credit limit, so they won't charge more than that. Since credit card companies make money on every charge, they've programmed their
computers to look for this case: Customers whose charges approach half their credit limit, but go no higher. If your spending patterns make you look like one of those customers, they will quickly raise your limit, in the hope that you'll go right on charging up to half of your new, higher limit.
Of course, as I warned right at the start, this is no help at all if the reason that you want a higher limit is because you've charged your card up to the limit. But if you're keeping your cards paid off but want a higher limit for some practical reason, that's how to fix it.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any bank, card issuer, airline or hotel chain.