A higher credit limit does more than just giving you greater buying power and financial flexibility in Utah. It can also help increase your FICO scores over the long term. Considering that they assist in about 90% of credit decisions in the United States, they can make life easier for you.

This is especially true when you buy any insurance or taking a mortgage loan here in Salt Lake City, Provo or Sandy in the future. However, financial institutions are not keen to grant higher credit lines all the time. Although having access to more credit comes with rewards, it is not without risks.

It encourages more debt acquisition, which can put an irresponsible consumer in financial distress for an extended period. Requesting for a credit line boost knocks a few points off your FICO credit scores because of a hard inquiry. It is better to get approved the first time to make it count. Below are the best scenarios where you should consider applying.

You Did Not Apply for Credit Recently

Asking your credit card issuer for a deeper source of credit creates an impression that you plan to acquire more debt in the future. There is nothing wrong with it except when you just opened a new credit account.

Calling for a higher line of credit after receiving a new credit card or obtaining a loan does not put you in a good light.

It actually makes you a riskier customer so that you may get a no outright. Before you request for a credit limit increase, make sure the last time you asked for one was at least a year ago. Also, wait for your new plastic to be open anywhere between six to 12 months, so you do not appear hungry for credit.

You Got a Raise

Any credit card issuer conducts thorough income verification to make sure you make enough money to repay what you owe if you max out your card. If you have not received a salary bump, your bank or credit union may think twice to grant your request.

You Switched to a Better Job

Moving to a different company comes with uncertainty. But your financial institution may be less scared to drive up your credit line if you are going to earn more in your new position.

You Have Good Credit

woman with credit card in her hand while making online purchase

While a higher credit limit can be a tool to build credit, your bank or credit union want to see your FICO scores are within the “good” range first. You need to show first that you have paid for your past financial mistakes to inspire confidence in your credit card issuer.

You Are Not Going on Vacation Abroad Soon

Do you like to travel? Your upcoming overseas trip may sabotage your credit limit increase request. Financial institutions know that consumers are more likely to spend more than they usually do as tourists. Your bank or credit union is less likely to provide you with more ammunition to put holes in your credit reports.

You Do Not Need It Yet

The best time to ask for more credit is, ironically, when you do not need more credit. If you are not planning to buy any big-ticket item soon or tap a significant amount of instant cash soon, your probability of getting approved is higher.

Higher credit limits are rewards for admirable financial behavior. If your records say otherwise or your intentions cause concerns, consider not applying for now. It might only pull down your FICO scores rather than raising your line of credit.