Bank of America Credit Limit Increase Full Guide

Getting a Bank of America credit limit increase can be an important financial decision to add more flexibility to your finances.

A credit increase can also raise your credit score and improve your overall credit history as long as you maintain healthy spending patterns and a low credit utilization ratio.

Bank of America Credit Limit Increase

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As the term indicates, a credit limit is the maximum amount of money a credit cardholder is allowed to spend on a card.

An increase to the credit card limit may occur automatically when the card issuer carries out regular reviews and spots “good risk” cardholders.

In this guide, we’ll show you how to both increase your Bank of America credit limit by requesting one, and how to set yourself up for automatic increases.

When Should You Ask Bank of America for A Credit Limit Increase?

While there are no set guidelines for when to request a credit limit increase, a credit card issuer is generally more willing to increase your credit line if you have demonstrated responsible use of the card for an extended period.

Here are some factors and behaviors that increase your chances of approval:

  • Having your card for six months or more
  • Consistently paying your credit card bill on time and in full each month
  • Not having recently requested a credit limit increase
  • Updating your income information after a raise, a promotion or starting a higher-paying job
  • Raising your credit score by reducing your revolving credit balances or paying off debt

In addition, try to wait around six months between requests if your credit score is not strong. Repeated requests for credit may indicate over-borrowing or financial difficulties. If you apply for a higher credit limit too often, you may increase your chances of getting denied.

Also, think about setting up automatic payment for, at the very least, the minimum amount owed to make sure that your bill is always paid on time.

The most important factor affecting your credit score is your payment history, which accounts for 35% of your FICO score and 41% of your Vantage Score. Borrowers who consistently pay their bills on time and avoid late payments are preferred by lenders.

Do Bank of America Credit Limit Increases Occur Automatically?

For responsible cardholders, automatic increases may occur. To ascertain that a credit card account qualifies for an automatic credit increase, Bank of America, like the majority of other card issuers, reviews credit card accounts on a regular basis.

Several factors, such as total annual income, past credit card payment history, current debt and monthly housing payments can influence credit limit increase decisions.

Make sure you notify Bank of America of any increases in your income as those do not otherwise appear on your credit profile.

Automatic increases on your credit card account are also contingent upon the account being in good standing at the time of the review.

How To Ask For a Bank of America Credit Limit Increase

To request an increase in your credit limit, here are the steps:

  • After logging into the Bank of America website, choose the credit card on which you would like to have the credit limit increase.
  • Go to the tab marked "Information and Services."
  • Next, choose "Credit line increase," which will direct you to the request form.

The credit line increase form will ask you to fill in the following details:

  • The desired credit line in $100 increments
  • Your occupation
  • The type and amount of your housing payment
  • Your total income and revenue

Your request gives Bank of America permission to obtain a copy of your credit report and examine your credit and other information relevant to a credit limit increase.

In certain instances, a decision might be made right away. In other cases, Bank of America may not notify you of the approval or denial of your request for seven to ten business days.

How Much Credit Increase Should You Ask For?

You must specify how much extra credit you want when you ask Bank of America to raise your credit limit.

In some cases, you may be asked for the purpose of your credit limit increase. Here are some things to think about when you send in your request:

  • Are you looking to make certain purchases but have an insufficient credit limit? If so, request an increase to enable you to make the desired purchases and see if it will be approved.

  • Credit limits are determined by banks based on your capacity to pay back your debt. They consider your income, debt obligations, credit history, and other factors before making a decision.

    If none of those has changed significantly, 10 to 25 percent of your existing credit limit is typically a good bet. If they have changed, higher credit limit approvals may occur.

  • If your credit score is low, consider whether any quick fixes are possible before submitting your request.

    Typically, reducing your outstanding revolving credit debt will improve your credit score by decreasing your credit utilization ratio.

Regarding your credit utilization ratio, the key is to keep your balance at thirty percent of your credit limit or ideally less. The lower the better. Ironically, if you are approved, the increase in your credit limit should drive a reduction in your credit utilization ratio.

You may also want to review your credit profile and clean up any errors that negatively impact your record before requesting your credit line increase.

Will A Bank of America Credit Limit Increase Request Harm Your Credit Score?

Asking Bank of America for a credit line increase does not cause a significant credit score drop. However, as for most lenders, a "hard pull" on your credit report will be performed when you apply for new credit, which may lower your credit score, but only temporarily.

On the other hand, Bank of America performs a "soft pull" for possible automatic credit limits to qualifying cardholders. Your credit score is unaffected by a soft pull, and the inquiry is not visible to other lenders.

What If your Bank of America Credit Limit Increase Is Denied?

While other big banks like American Express and Wells Fargo have a dedicated reconsideration line for credit applications, the Bank of America credit decisions reconsideration process is, as of this writing, handled through their regular customer service line.

Ultimately, if your application for a Bank of America credit line increase is not approved the first time, consider the following options to help you get the additional credit you need:

  • Depending on the strength of your credit profile, consider applying for a balance transfer credit card.

    If your Bank of America credit card balance is getting maxed out, a balance transfer credit card offering a 0 percent introductory APR for 15 to 18 months can help you transfer your outstanding credit card balances with no interest. Be sure to make note of when interest will kick in.

  • Improve your credit for six months through responsible credit use and on-time payments, then make another request.

  • Try a different credit card issuer with less stringent requirements and apply for a new credit card.

    Improving your credit is a journey. A new credit card with an issuer servicing fair or poor credit can get you going on increasing the amount of credit available to you and boosting your credit profile for future requests.

  • Likewise, try requesting a credit limit increase with a different card issuer that is less strict about issuing credit limit increases.

    Also, different banks have different credit offering initiatives at different times. Shop around and wait until you spot an opportunity that matches your circumstance.

Remember to Avoid Overspending

Receiving a higher credit limit naturally tends to make people more likely to succumb to the urge to overspend.

It is essential that you rein in your spending weaknesses so that they will not sabotage all your efforts to build a strong financial future.

Because spending on impulse can be so detrimental, we invite you to visit our other posts including the one simplifying Needs vs Wants.

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