MW Want to improve your credit score? Here's how to ask for a credit-limit increase.
By Genna Contino
'People have more power over their money than they think they do'
Asking for a credit-limit increase can help improve a borrower's credit score - but it's important to remain conservative with spending.
With prices now rising faster than wages, financially strapped consumers are putting more purchases on their credit cards.
Average credit utilization, or the percentage of available credit a borrower is using, sits just under 36%, according to FICO's $(FICO)$ spring credit-insights report. However, Generation Z and millennials are relying more on debt than older generations, with an average utilization ratio of 44% - significantly higher than the recommended 30%.
In determining a credit score, utilization is the second most influential factor after payment history, so requesting a credit-limit increase to lower that utilization ratio is one strategic way consumers can boost their credit score. Major card issuers are feeling "cautiously optimistic" about expanding customers' credit access, credit experts say, but factors like an individual's payment history, account history and changes in income still play a big role in whose limit lenders are willing to raise.
While pushing for a higher credit limit gives consumers more spending power, it's also a survival tactic in the current economy. To cover the rising cost of essentials, Americans are relying more on credit cards, buy-now-pay-later loans and emergency savings. Because a high credit-utilization ratio can lower a credit score, proactively asking for a limit increase allows strained borrowers to improve how their financial picture looks on paper to ensure continued access to vital financial lifelines.
Read more: What the growing gap between Americans with good and bad credit says about today's economy
"People have more power over their money than they think they do, and that's certainly been true over the years when asking for a higher credit limit," said Matt Schulz, chief consumer finance analyst at LendingTree (TREE).
How to gauge if a lender will approve your request
Major credit-card issuers are generally open to expanding cardholders' credit limits, said Charlie Wise, head of global research and consulting at TransUnion (TRU).
"If you've got three, four, five cards in your wallet, the one with the highest limit is the one you're more likely to spend on," Wise said. The more a user spends on a card, the more the issuer makes in transaction fees and interest.
Taking out a loan? First make these 5 smart moves to raise your credit score - whether you have weeks or months
In February 2026, more cardholders were applying for credit-limit increases compared with two years earlier, Federal Reserve Bank of New York data show, and lenders were more likely to approve those requests.
Lending decisions, however, are heavily influenced by the economy. For example, the rejection rate for requests for credit-limit increases peaked around 45% in 2024 when the federal funds rate was still elevated, at around 5%. That rejection rate fell to 26% as of this February, according to Fed data.
Despite a low rejection rate, the current 'K-shaped' economy - in which wealthier Americans are doing well, while those with lower incomes are under pressure - has created a disconnect between lenders and borrowers. While credit-card companies may be eager to lend to superprime borrowers with scores above 720 - who might not need the boost because they're already faring well financially - they're less likely to lend to subprime borrowers with scores below 600, who may need a loan the most.
'Squeezing more life out of every dollar': How inflation is forcing a new reality on American families and amplifying the economy's 'K shape'
"When they tend to need more credit is usually when there's some economic headwinds that cause them to need more credit," Wise said. "Which is exactly the time that lenders are saying, 'We don't want to let too much line out.'"
What's the best time to ask for a limit increase?
While lender behavior can fluctuate with the economy, borrowers should time their request for when they need it most.
"If you need that credit-score boost or if you have a big payment coming up and you know you'll need that extra runway, those are the reasons, typically, when it's smartest to ask for an increase," Schulz said.
Want the lowest mortgage rate you can get? Credit-scoring changes mean home buyers need a new strategy.
Borrowers should avoid asking for an increase if they plan to spend frivolously with the extended line of credit, however, because that negates any attempt to improve their credit-utilization ratio. Those looking to buy a home in the next six months should also hold off, Schulz recommends. "You just don't want to rock the boat, because a few points on your credit score can impact the rate that you get on that next mortgage," he said.
Tips for getting a request approved
Requesting a credit-limit increase is as simple as calling your credit-card company or applying through its website. But it helps to be prepared.
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Here are a few tips from Schulz that could improve your chances of getting a "yes":
-- Come with positive news. Whether it's a recent raise, paid-off debt or a credit-score increase, any way you can display your fiscal responsibility lowers your risk profile in the eyes of a lender.
-- Include your household income. Rather than relying on your income alone, putting the entire household income on an application can improve your chances. Issuers only require that the borrower has a "reasonable expectation of access" to those funds.
-- Kill them with kindness. Customer-service representatives deal with rude people all day. Being polite could improve your odds of getting your request approved.
-- If it's a "no" today, try again tomorrow. "Sometimes you catch somebody on a bad day, or they're just wrapping up their shift and they don't want to deal with you," Schulz said. "It's OK to make that second call."
Your next read: You could be paying an extra $2,000 for home insurance every year because of this financial baggage. Here's how to fix it.
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-Genna Contino
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(END) Dow Jones Newswires
June 16, 2026 11:56 ET (15:56 GMT)
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