How to Get a Bigger Line of Credit
Increasing your available credit can offer some much-needed breathing room for consumers with a big upcoming purchase or who regularly find themselves bumping up against their credit limit. Having a bigger line of credit can also provide a boost to your credit score (assuming it doesn't cause you to spend more), as your credit utilization ratio goes down. Credit utilization is the ratio of your debt owed to your credit available, and more available credit in the denominator will cause that ratio to decrease.
Getting yourself a bigger line of credit may be as simple as picking up the phone and asking for one. If you've demonstrated responsible financial behavior with your current credit card company for six months or more -- on-time payments, paying your bill in full every month, staying within your credit limit -- give them a call and ask for an increase. According to a survey from CreditCards.com, 89% of people received an increase just by asking (politely).
But there are a few things you can do to improve your chances of getting a bigger line of credit.
Source: Fool.com
