How To Increase Your Credit Limit on Your Credit Card

If you’re thinking about searching for a credit card, you might ask, ‘what will my credit limit be?’.
The thimbl guide to credit limits explores what a credit limit is; the things you could do to improve your chance of being approved for a credit limit increase; and the important factors to think about before you request or accept a change to your credit limit.

A credit limit is the total amount of money that you’re able to borrow on your credit card.
It’s important to remember that you don’t need to use your full credit limit; you should only ever spend what you need to and can afford to repay.

How is a credit limit determined?

It’s important to understand that your credit limit will depend on several factors, including your credit score; your personal financial situation; how you’ve handled any current or past credit commitments; and the type of credit card that you have applied for.

Some credit cards, especially those for people with less-than-perfect credit scores, may come with a more manageable starting credit limit to help encourage healthy spending and repayment habits.

Why is it important to stay within your credit limit?

Staying within your credit limit is crucial for a number of reasons.
If you attempt to make a transaction that takes you over your credit limit, your credit card could be declined, and you might be charged a fee.
If you have a credit card with an interest-free period, you could lose access to this or any other promotional offer(s), meaning any outstanding balance or transactions you make going forwards will be charged interest at your standard rate.

Where can I find my credit limit?

You should be able to find your credit limit on your monthly credit card statement, as well as in your online banking account or app.
If you’re unsure or are unable to locate your credit limit, your provider should be able to help.

What is credit card utilisation?

Credit card utilisation is the amount of money that you’re currently using of your total available limit. Credit card utilisation is shown as a percentage.
Let’s say your credit card limit is £1,500, and your current balance is £75. Your credit card utilisation would be 5%.
If you’re hoping to improve your credit score, you should aim to keep your credit card utilisation as low as possible.

Can I increase my credit limit?

It might be possible to request an increase to your credit limit.
This will depend on your credit card provider; how long you’ve had your credit card; and how well you’ve managed your spending and repayment habits.
Each credit card provider will have their own criteria in place, but having your credit card for a minimum of six months could be a requirement before you’re able to request an increase.

Things to think about before increasing your credit limit

You should carefully consider whether increasing your credit limit is right for you. Your credit limit should be manageable and should never be an incentive to spend money if you don’t need to.
Before you make a request to increase your credit limit, you should ask yourself the following questions:

Do I really need an increase?
Can I afford it?
Having an increased credit limit could potentially encourage unnecessary spending. Am I disciplined enough to keep on top of this and only spend what I need to?
Do I understand the potential risks of making a late repayment or missing one altogether, including the impact this could have on my credit score?

How to increase your credit limit

If you’ve thought about it carefully and have decided that a credit card limit increase could be a suitable option for you, you’ll need to discuss the next steps with your credit card provider.
You may be able to do this via your online banking account or app, or by calling customer services. If your credit card is provided by a high street bank, you might be able to make your request in person by going into a branch and speaking to an advisor.

It’s important to bear in mind that your provider doesn’t have to approve your request for a credit limit increase. Alternatively, they might agree to increase your credit limit, but by a lower amount than you’ve requested or had expected.

When considering your request, your provider will pay particular attention to how you’ve managed your credit card so far, including whether you’ve stayed within your existing credit limit and whether you’ve made your repayments on time.

Will my credit limit increase automatically?

If, over a certain amount of time, you’ve demonstrated that you’re able to effectively manage and repay the money you spend on your credit card, your provider may offer you a credit limit increase or grant you one automatically. Your provider will notify you with any changes to your credit limit.

If you don’t feel comfortable with your increased credit limit, you should let your provider know as soon as possible, so that they can look into changing it for you. You can also opt-out of automatic credit limit increases.

How to increase your chance of being approved for a credit limit increase

While a credit limit increase cannot be guaranteed, there may be certain things you can do to improve your chances.

Be sure to make at least the minimum repayment amount due on time each month.
Where possible, try to pay more than the minimum repayment amount. Remember, paying your balance in full and on time each month will mean that you won’t be charged any interest.
Ensure bills and any other credit commitments are also paid on time.

How often can I request a credit limit increase?

This will depend on your credit card provider. They might require you to wait at least six months after your last credit card increase before you ask for another.

Be aware that requesting a credit limit increase too often could signal that you’re struggling with your finances. If you’re experiencing financial difficulties, requesting a credit limit increase could lead to money troubles and a spiral of debt. You can access money and debt management advice through several organisations, such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.

What’s the credit limit on a thimbl Credit Builder Credit Card?

The starting credit limit on a thimbl Credit Builder Credit Card is between £200 and £2,000, depending on your financial circumstances and the result of the lender’s affordability checks.

You cannot request a credit limit increase, although your account will be automatically reviewed on a regular basis, and you’ll be notified if you’re eligible.

How does the thimbl Credit Builder Credit Card work?

The thimbl Credit Builder Credit Card has been designed for people aiming to build their credit score and work towards a healthier credit position.
Use your thimbl credit card to make small, necessary purchases and then make at least the minimum repayment amount due on your account each month. Where possible, you should try to make more than the minimum repayment amount, and remember, paying your balance in full and on time each month will mean that you won’t be charged any interest at all.

Credit builder credit cards work best when used alongside other credit-building methods, such as registering to vote; amending any outdated or incorrect information on your credit report; and paying all your bills and any other current credit commitments on time.
You should also avoid using your credit card to withdraw money from a cash machine. This is known as a cash advance, and could suggest poor money management, as well as harm your credit score.

Can I apply for a thimbl Credit Builder Credit Card?

You can check your eligibility for a thimbl Credit Builder Credit Card if you:

Are between the ages of 18 and 70;
Are a UK resident with 1 years’ UK address history;
Are employed, with a monthly income of £800 or more;
Have an active credit account elsewhere; and
Do not already have a Zable credit card.

You will not be eligible to apply if you have an IVA or have declared bankruptcy.

Checking your eligibility will not harm your credit score. If you choose to make a full application, you will be directed to Zable.* You will be required to undergo an affordability check, which will include a hard credit search. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time could have a negative impact on your credit score.

*Zable is a trading style of Lendable Ltd. Any credit that is obtained as a result of an application will be provided by Lendable Ltd.

I can’t afford my credit card repayments; what should I do?

If you find yourself in this position, you should stop using your credit card immediately and contact your provider. They will listen to your situation with empathy and be able to discuss any options that may be available to help.

I’m struggling with money; where can I find advice?

Money worries can be daunting, but reaching out and asking for help is the first, brave step towards taking back control.
You can access free, confidential and impartial advice from charities and organisations such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.