Here are some tips for asking your lenders to raise your limit if you’re ready to take on the financial responsibility of increased credit:
Don’t ask for too much
If you ask for too much of an increase, your account is likely to get flagged and you won’t get anything at all. It can be difficult to know what that right amount is to ask for, so if you can, try to avoid specifying a dollar amount. The customer service rep will likely ask you how much of an increase you’d like, and you can say that you’re not sure and would like to see what you’re qualified for. However, this might not always work and you might need to specify an amount. An increase of 10 to 25 percent is a good amount to shoot for.
Watch out for fees
Some credit card issuers will charge a fee for a credit increase, so be aware of this before applying and ask your lender if they implement any such fees. You may decide to go ahead with the increase request anyways, but it’s good to know about these potential fees ahead of time so that you’re not unpleasantly surprised when you receive your next statement. However, depending on your current standing, you might just be better off applying for a different card that offers a higher limit instead of paying the fee to increase the limit on your current card. If your lender does impose credit increase fees, shop around first before requesting a raised credit limit.
If you’re denied
You’ll receive an adverse action letter if your request for an increase is rejected due to something on your credit profile. You’ll also receive a free credit score disclosure if your score was used in the lender’s decision-making process. For instance, your credit increase request may have been turned down if you were late making payments for other loans or other credit card accounts. Be sure to take note of the reason(s) why your increase request was denied. Take action to fix the issues, give it some time, and then try again.
Are you receiving annuity payments or structured settlement payments? If so, you can sell some or all of your future payments and receive that money in a lump sum. Just think of the possibilities by receiving cash now: you can buy a home, pay off debt, take care of expenses, and so much more. Contact Peachtree Financial Solutions today if you’d like to learn more about our services and if you’re interested in receiving your free quote.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.