Credit limits determine how much you can spend on a credit card. Card issuers may increase your credit limit automatically, but you can often request an increase directly from the issuer. High credit limits can help you make larger purchases and keep your overall credit utilization rate low, which can have a positive effect on your credit score.
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How To Increase Your Amex Credit Limit
Increasing the credit limit on an American Express credit card is relatively simple if your account is in good standing. That means the cardholder has steady employment or income, an on-time payment history and a good credit score. The length of time you’ve held a particular card can also impact your ability to request a credit limit increase.
Do Credit Limit Increases Happen Automatically?
Yes, some card issuers—including American Express—may increase a cardholder’s credit limit automatically if cardholders:
- Use the card frequently
- Consistently make on-time payments
- Keep a low balance
- Report a recent income increase
- Maintain a good credit score
Card issuers use various information, including credit history and income, to determine whether cardholders are eligible for an automatic increase. Keeping your income updated on your account may improve your odds.
How Often Does American Express Increase Credit Limits?
American Express will review your account as often as every six to 12 months for an automatic credit limit adjustment. However, that doesn’t mean you’re guaranteed an increase with responsible card use.
Also, note that you can only request a credit line increase once every six months for each American Express card you have.
Pros and Cons of Higher Credit Limits
Pros of Higher Credit Limits
- Lower credit utilization rates. A higher credit limit can lower credit utilization rates by increasing the total credit limit available to cardholders as long as they maintain the same spending habits.
- Credit score increase. Lower credit utilization, on-time payments and reasonable spending habits can all increase in credit scores.
- More credit available for large purchases. A higher credit limit means more wiggle room for large purchases like a new TV or appliance. Make sure to pay off the balance to avoid interest.
- Improve standing for a new car loan or mortgage. Combining a better credit score with a history of on-time payments and low credit utilization will put anyone in a good position to get lower interest rates on big loans.
Cons of Higher Credit Limits
- More available credit can lead to more spending. While having more credit can be good, everyone should aim to spend only what they can afford.
- Greater risk of debt. Leveraging a higher credit limit to spend more can put you into a debt spiral with unpaid balances and high interest rates.
- Hard credit inquiries. Credit issuers sometimes perform a hard credit inquiry to raise a credit limit, particularly if the increase is requested by the cardholder. Too many hard inquiries can negatively affect credit scores (compared to a soft inquiry that has no effect). However, American Express doesn’t perform a hard credit inquiry while evaluating a credit limit request.
How To Request a Credit Limit Increase
Your account must be open for a certain period of time—some reports say at least 60 days—to request an increase. Then, you can follow these steps:
- Log in to your online account and select the card for which you want to request the increase.
- Navigate to the “Account Services” menu and click on “Payment & Credit Options.”
- Select “Request Credit Limit Increase” and enter your desired credit limit and other required information.
- Submit your request.
If you don’t have the option to request a credit limit increase online or you prefer to speak to a representative, you can call the number on the back of your card and make the request over the phone.
Remember to keep the increase request reasonable––10% to 25% more than your current limit. If your limit is $1,000, asking for an increase to $10,000 may or may not be approved or may result in only a portion of the requested increase being approved.
What To Do If Your Credit Limit Increase Is Denied
Request for a credit limit increase denied? There are a few reasons this might be the case.
American Express might deny a second request if you’ve requested an increase recently. Try again after more time has passed. Other reasons for denial could be a consistently high card balance, frequent late payments or a low credit score.
Don’t stress if the request is denied. Ask American Express representatives if they can provide a reason, and then work on improving the appearance of your perceived weak area over the next six months. Pay down any balance, pay bills on time and report income increases to American Express when they happen.
Another option is to apply for a new credit card with American Express or a different card issuer. However, while American Express does not perform a hard credit inquiry for an existing customer’s credit limit increase request, American Express and other issuers may perform a hard credit inquiry before approving individuals for a new card.
Bottom Line
Requesting a credit limit increase is pretty straightforward, but remember to be realistic when requesting an increase from the card issuer. Simply waiting for an increase is an option because many card issuers, including American Express, will reward responsible cardholders with automatic increases. Limit increases could lead to higher credit scores and more spending capabilities. Make sure to maintain responsible spending habits and keep making on-time payments to boost your credit score.
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Frequently Asked Questions (FAQs)
Is it hard to get a credit line increase with American Express?
American Express doesn’t disclose specific requirements you need to meet to qualify for a credit line increase, so it’s challenging to provide a cut-and-dry answer to this question. In general, if you maintain good or excellent credit, have a solid income, use your account responsibly and avoid too much debt, you may have good approval odds.
Why won't American Express increase my credit limit?
American Express considers several factors when a cardholder applies for a credit limit increase. Potential reasons for a denial may include:
- You’ve requested an increase in the past six months.
- Your credit score is too low.
- Your balance is too high.
- You have too much available credit across all of your credit cards.
- You’ve missed payments on your account.
- Your income hasn’t changed.
If you’re denied, the card issuer will provide the reason, making it easier for you to know how to improve your chances of getting approved the next time.
What American Express card has the highest limit?
The Centurion® Card from American Express* arguably offers the most spending power of any Amex credit card. The charge card, available on an invitation-only basis, has no preset spending limit and is designed for individuals with a high net worth.
