Credit Card Credit Limit Increases

Sometimes, you just need more of a credit limit than your card offers. For example, you're going to make that once in a blue moon purchase of something actually expensive, rather than your typical gas and groceries (where you should be using your MBNA Smart Cash Mastercard!).
This can often be a problem for younger people, since the credit card companies are unwilling to raise limits unless asked for. I recall my brother once having to have two credit cards just to get a total limit high enough to cover his gas and groceries (while working a job)

Ask for Regular Credit Limit Increases

Usually, if you have a good payment history, you can get minor rate increases with ease every 6 months or so without any formal credit department review. So I suggest this to young people without much of a credit history: Every January and July, call in and ask for a small credit limit increase.

Larger Credit Limit Increases

If you'd like a larger rate increase, you'll usually have to call in and provide information regarding your job, rent and earnings. I'm really not sure how thoroughly they verify this. My guess is that they check your credit report (which you can do for FREE!), and if everything checks out, they don't bother calling your employer or your landlord. These can take a few days to process, and you might have to fight with them if you get rejected, so plan accordingly.Often, they'll ask how much of an increase you'd like. It may be a good idea to ask for a larger limit increase than you need if you know you're very credit worthy, and it'll save you another limit increase request in the future when you buy something else.

Getting That Credit Limit Increase

The key thing when asking for these rate increases is to show that you're credit-worthy. Make sure you're asking for the rate limit for a valid reason (making a rare, but large purchase, like new appliances), rather than for something more frivolous, like big on-going expenditures or quitting your job and travelling around the world.

Banks Will Be Banks

It's also important to ask for these increases when you're credit-worthy: Ask for regular and reasonable increases while you're steadily employed, rather than the off-season where you need money to hold you over until work comes around again. Banks are smart: They're only willing to lend money to people that don't need it, and they stay far away from those that do need money :)

Which Credit Card Company Phone Number to Call?

Check out my list of phone numbers for Canadian Visa credit card and Canadian Mastercard credit card issuers' phone numbers. Use the telephone numbers listed on these pages to call for a Credit Limit Increase.

What If They Reject My Credit Limit Increase Request?

If your request for a credit limit increase is rejected, ask them "Why?" Many people have incorrect or just plain wrong entries on their credit report, so be sure to ask for it. The credit bureaus in Canada often have information services you can call if you've been rejected for credit based on their reports. If your credit rating was low, do what you can to get it back up: Pay back bills, pay on time, decrease credit utilization, etc. Sometimes, getting a second credit card is the answer, especially for young people that don't have much of a credit history.Finally, ask yourself: "Did they reject this for a good reason?" It's possible you're not as credit-worthy as you thought. Just a thought.

Final Credit Card Advice

Don't carry a balance on your credit card, unless it's one of those 0% balance transfer offers, and even then, tread carefully.