Chase Credit Limit Increase Pros & Cons

Interested in a Chase Credit Limit Increase? Look no further. In this review, we will discuss the procedures and factors to consider in order to successfully apply for a credit limit increase with Chase.

A major player in the credit card market, Chase offers a variety of credit cards with a wide range of features, benefits, and rewards. As financial circumstances change, cardholders may from time to time need a higher credit limit. How do you put yourself in the best position to obtain one?

Chase Credit Limit Increase

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What’s The Importance of Your Chase Credit Limit Increase?

The credit limit on a card is precisely that: it is the maximum amount of money that the issuer will allow you to spend. You will typically have transactions declined when you cross that threshold.

Chase has its own policies regarding exceeding credit exceeding credit limits. The company states that you won't be charged a fee if you temporarily exceed the limit. Most likely, your attempt to use your card will simply be declined.

That said, a credit limit increase will help you avoid the mishap to begin with. It has other benefits as well, which we will discuss shortly.

How To Get a Chase Credit Limit Increase

Needless to say, increasing your credit limit can help you make bigger purchases. It can also help to raise your credit score. Before requesting an increase, make sure your account is in good standing and your credit is in reasonably good order.

This entails responsible credit card usage, paying your bills on time, and paying the minimum amount each month.

Should you get a raise, be promoted to a higher paying position, get a new job with better pay etc., let Chase know. The added income is a favorable approval factor that many applicants overlook.

Unlike other card issuers, Chase does not currently allow cardholders to request an increase online. You must give a Chase representative a call by using the number on the back of your card.

Depending on individual circumstances, you may be approved right away, or it may take up to 30 days for a decision to be made.

Before you call, prepare some information. For instance, know how much you would like to request. Typical Chase increases fall in the 10 to 25% range. Note that this may be higher depending on individual circumstances, and some banks offer more generous increases.

Your annual Income is a very important factor. It can also include additional income that is a reliable component of your household budget, such as spouse wages.

Monthly bills that appear on your credit profile may be scrutinized. This usually includes rent or mortgage payments. Lenders want to know if it would be risky to extend you credit.

Since the application is in person, be prepared to defend your submission and explain your motives for requesting a credit increase.

Details that an online application does not permit can be used here. For instance, if you’ve been the victim of catalytic converter theft and need to pay for replacement and anti-theft device, it’s a more compelling request than not having a reason at all.

Does Chase Boost Credit Limits Automatically?

For cardholders who qualify, Chase may raise credit limits automatically. Before granting an automatic increase, credit card issuers such as Chase take into account a number of factors including the cardholder’s credit score, credit utilization rate, and length of account opening.

Before your account qualifies for an increase, Chase also requires that it be open for at least six months to a year.

Establish the practice of paying on time and in excess of the minimum amount due to improve your chances of receiving an automatic increase.

An automatic Chase credit limit increase may be announced in the form of an email, a letter, or notification in your online account.

How Frequently Does Chase raise credit limits?

Chase does not say how frequently it offers or approves raising credit limits. The likelihood of an automatic credit line increase ultimately comes down to a few factors, including: 

  • How long you've had your account
  • How well you maintain your credit standing
  • When was the last time your limit was raised
  • Your debt load and debt-to-income ratio also play a significant role

Does Chase Perform a Hard Pull When Increasing Credit Limits?

A hard pull takes place whenever a card issuer formally requests a customer's credit report. It leaves a mark on the report that stays for two years.

A soft inquiry has no effect on a credit score, but a hard inquiry temporarily lowers the credit score by around 5 points.

When calling Chase to request an increase, you may assume that they will perform a hard pull as part of the credit check that the approval decision is based on.

If Chase reviews your credit profile for a potential automatic credit increase you did not request, a soft pull will be done. It has no effect on your credit score.

Should I Raise My Credit Limit?

There are advantages to raising credit limits. By extending their credit limit while maintaining the same level of spending, responsible consumers can reduce credit utilization and raise their credit scores.

One of the main factors influencing credit scores is credit utilization. Lenders like to see it at a rate below 30% of your available credit. The lower the percentage, the better. Cardholders stand a better chance of being approved with this ratio of outstanding balance.

It potentially also has a beneficial impact because it can raise your credit score if you keep your credit spending under control.

Final Words on This Chase Credit Limit Increase Review

Higher credit limits enable large-scale purchases, such as the acquisition of a new television, kitchen remodeling, furnishings, or vacation travels etc.

Before using a credit card for a large purchase, preplan how you will pay it back—ideally before interest starts to mount on the outstanding amount.

In the event that interest does accrue, make sure to pay off the balance as soon as you can, and be aware that the card's grace period protects you from interest charges if you pay off the balance.

So, to avoid paying interest, it’s always advisable to pay off the entire amount each month.

It can be dangerous to ask for or accept a credit limit increase because it makes it dangerously tempting to overspend. More credit available is an alluring offer that tempts one to spend now and think later. Lenders know this.

Debt can accumulate quickly when minimum monthly payments, high interest rates, and excessive spending are combined.

Let’s end with a few questions to ask yourself to be on top of your Chase credit limit increase request:

  • Will I be tempted to overspend?

  • Can I afford to pay more each month if I spend more?

  • Has my credit utilization increased recently?

  • Have I recently received a raise or seen a significant increase in income?

  • Have I already received a credit limit increase in the last six months?

Asking yourself these questions beforehand and considering both the pros and cons will help you take advantage of the benefits of a credit line increase while avoiding the potential negatives.

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