Many people are focused on finding ways to improve their finances in 2025, and one popular idea is to request a higher credit card limit. That is to say, you are asking your credit card company to allow you to spend more money on your card.
While it may sound like a wonderful idea, it is not always the best course of action. We’re here to help you figure out when to ask for a credit limit increase, when to steer clear and what it means for your money and credit score.
Credit Card Limit Increases in 2025
An increase to your credit limit means your credit card company has agreed to let you borrow more money on your credit card. For instance, if it lets you spend up to $3,000 now but the company bumps it to $5,000, we consider that a credit limit increase.
If you have been utilizing the card wisely, this can happen automatically. But in a lot of situations, you may have to request it yourself.
When to Request a Credit Limit Increase
Of course, there are times when it’s okay to ask for an increase to your credit limit particularly when your financial situation is robust. If you are managed responsible use of your credit card, now may be a great time to make the ask. Here are some of the best times to ask:
- You got a raise at work, or a new job with a better income.
- You have eliminated other debts and your credit is in good standing.
- You have been using the card for more than six months and paying on time.
- One is that you have increased your credit score, and you have good credit usage.
In such scenarios your credit card company might be more inclined to approve your request. They sometimes will review your credit report and may inquire about your income. A good credit history and stable income are safeguards that you’re a safe person to give more money to.
The Best Times to Not Request an Increase
At times, asking for a credit limit increase can do more harm than good. If your finances are precarious, you should wait. For instance, if you have been missing payments recently, or if you are using most of your credit already, it’s not going to happen.” Even worse, the credit check itself can nudge your credit score down a few points.
And if you are tempted to spend more simply because you have a greater limit, that can easily start you down the slippery slope of debt. Of course, more credit that you do not have the willpower to control can be a dangerous thing. So do a little introspection about your own behaviour, and ask yourself whether more credit would be a boon or a bane.
Pros and Cons of Raising Your Credit Limit
Here’s a little bare bones summary of some of the plusses and minuses and and to a credit limit increase:
Pros:
- One way to boost your credit: Lower your credit utilization (the amount you use compared with your credit limit).
- Extra space to spend in a crunch.
- Can help you book travel, rent a car or make big purchases more easily.
- Can help smooth out monthly cash flow.
Cons:
- Can lead to more out-of-control spending and more out-of-control borrowing if you are not careful.
- A hard credit pull could potentially ding your credit score a small amount.
- The risk of being declined, which can crimp your confidence or leave you with a too-high number of recent pulls.
- May not help if you already have high balances or pay on time.
- Focus on what you value the most. If you are looking to build your credit and want to control your money, the pros may outweigh the cons. But if you are already anxious about debt, the cons could be deal breakers.
How Individuals can ask for Credit Limit Increase
You may be able to dial the customer service number on the back of your credit card, or log into your online account. Numerous banks and credit card issuers allow online requests for a credit line increase.
- You will typically be asked for the following:
- Your current income
- What individuals pay for housing every month (rent or a mortgage)
- Your job status or employer
Many companies will grant your request immediately. Others might take a few days. And some of the time they may do a hard pull on your credit report, so be sure to ask if that will be happening before you agree.
Latest Update on Credit Card Limit Increases in 2025
It can be a good idea to ask for a credit card limit increase in 2025 if the timing is right and your financial habits are good. It can be good for your credit score, and make you more flexible around money. If you do ask for an increase, be sure that you keep using the card responsibly. Pay your balance in full as often as you can, and don’t spend all of your available credit. This will keep your credit score high and prevent you from getting into debt.
FAQs
Does requesting a credit limit increase damage my credit score?
It could if the credit card company performs a hard inquiry. But the effect is small and can disappear.
Am I allowed to request an increase in the limit of more than once a year?
Yes, but you are better off waiting six months, or even until your credit or income can be improved.
What if my request is denied?
You can wonder why and there is always another shot. In the interim work on improving your credit and payment history.