There is no magic wand to earn a higher credit limit and you will, most likely, not get it if you are not in a financial position to support it. With that being said, you could always try some of these points.
Make Your Case: You could request for a credit line increase online or over a call but talking to someone certainly adds a human touch to the situation. You can build your case for why you deserve a higher credit line by presenting points like: your bank records, past payment details, plans for using the added credit, etc. This tactic is most effective in the first six months of opening your account. You could face rejections, so keep jumping from one rep to another till you succeed.
Maintain A Secured Card Deposit: If additional credit is your way of building credit; all you need to do is to open a Secured Card Account and maintain a deposit there. Secured cards have been known to be most effective in augmenting your credit worthiness.
Leverage Your Business: You could also threaten to take your business elsewhere. This tactic is most effective when a company is locked in a fierce competition with its competitors. You might just mention lucrative sign-up offers being offered by rival companies at the time of negotiation. If your credit card company feels your business is worthy of retaining, chances are, you’ll get an increase; else, you can start looking for greener pastures.
Apply For A New Credit Card: A new credit card would certainly give your overall available credit a lift but if your finances are not in a convincing position, getting a new unsecured credit card might be tough.
Automatic Increase: Your credit card account is regularly evaluated to see if your account merits for a credit line increase. Your role in this process — is to wait.
Pros & Cons Of A Higher Credit Limit
Credit Utilization: Credit Utilization accounts for 30% of your total credit score. It is calculated for all your credit cards individually and collectively. In a layman’s terms it means that if you have little debt and a lot of available credit, your credit utilization ratio is low; this, in turn, is good for your credit score.
Added Spending Power: It goes without saying that a higher credit line brings with it more spending power. It’s good for those who intends on utilizing this added credit on responsible expenses such as medical bills and stuffs like that. But if your intentions are a lifestyle makeover — this might just be your quick sand.
Minimum Impact On Credit Score: Applying for a new credit card hurts your credit score far more than requesting a credit line increase. A credit line increase will also affect your utilization ratio but the impact won’t be as deep.
More Debt Potential: The average household owes at least $7000 in credit card debts, this adds up to $60 billion in credit card debt in 2014 alone. And the same figure is expected year on year, so this overspending habit carries an imminent threat to your own finance.
Inability To Get Other Loans: If you have a higher credit line, chances are, other financial institutions will see you — less lendable.