Credit card companies assign credit limits or lines based on several factors. These include your credit history, credit needs and financial capacity.
You may want a credit card line increase to consolidate debt by transferring balances from other credit cards, or you need an increase to make a specific purchase. One way to increase your credit line may be to pay more toward your credit card debt each month. This involves making more than the minimum payment, paying the balance off in full or paying more than the amount owed.
Pay more than the monthly minimum amount. The monthly minimum is the lowest amount you can pay to the credit card company to avoid being in violation of your card holder agreement. Paying the monthly minimum will not only mean greater finance charges but can also affect your credit score. In addition, credit card companies are likely to consider you a higher credit risk and may not approve you for a credit line increase.
Pay the balance off in full. This shows payment responsibility to the credit card company and also shows that you have the financial capacity to meet your monthly debt obligations in full. BalanceTransfers.com recommends occasionally paying only part of the balance due. This allows credit card companies to make money off of you in interest fees so they have a greater incentive to increase your credit line.
Pay more than you owe. This creates a credit balance on your credit card account. The credit balance adds to your total available credit. Note that it does not actually change the limit set by the credit card company. Credit purchases will use money from your credit balance.
Request a credit line increase. After paying more than the minimum balance for several months or paying the balance off in full each month, call your credit card company to ask for an increase. If your account history does not show you have used a large portion of your available credit, the credit card company may ask why you want the increase. Credit card companies have a credit-limit increase form available on their websites.