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It's very simple according to this article.
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.
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That is handy information. I often wondered how they determined who got credit card limit increases and who didn't. Thanks for the link, Jewel. :)
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My limit's high enough that barring an emergency of disaster-like proportions, I don't need an increase just now. I spend using it as little as possible. That's nice to know in case I ever do. Thank you Jewel. :)
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I'm trying to reduce my cc balance best I can to give me some breathing room before the Christmas spending begins. I like knowing how such things work, Jewel. Thanks!
I just got a new card so that's good to know. I don't intend to use it unless there's a catastrophe but will make an occasional buy every month to keep them happy.
The only reason a great many American families don't own an elephant is that they have never been offered an elephant for a dollar down and easy weekly payments. - Mad Magazine.