How to increase your credit limit

Key takeaways

• Your credit limit is the maximum amount you can borrow on your credit card at any one time.

• You can ask your card provider to increase your limit, although approval is not guaranteed.

• A higher limit can improve your credit utilisation ratio, which may benefit your credit score if managed responsibly.

• Lenders will consider factors such as your repayment history, income and existing borrowing before increasing your limit.

What is your credit card limit?

Your credit card limit is the maximum amount your card provider allows you to borrow on your account at any given time.

For example, if your credit limit is £3,000, the total balance on your card cannot normally exceed that amount. Your available credit will decrease as you spend and increase again as you make repayments.

How does the limit work?

When you first apply for a credit card, the lender will set an initial credit limit - you don’t get to choose it - based on factors such as your income, credit history, existing debts and overall financial circumstances.

This means different cardholders can receive very different limits, even when applying for the same card.

You'll normally find out your credit limit when your application is approved or when you receive your card agreement.

Every purchase, balance transfer, cash withdrawal, fee and interest charge counts towards your credit limit.

For example, if you have a £5,000 credit limit and a balance of £2,000, you'll have £3,000 of available credit remaining.

Some lenders may allow transactions that temporarily take you over your limit, while others will decline them. Going over your credit limit could result in fees or may affect your relationship with the lender.

Your credit limit is not a target to spend up to. It simply represents the maximum amount of borrowing your provider has made available to you.

Our guide shows the most up-to-date average credit limits depending on the type of credit card customers apply for.

Why would I want to increase my credit limit?

There are several reasons why you may consider asking for a higher credit limit.

A higher limit can provide greater flexibility when making large purchases, paying for travel or dealing with unexpected expenses.

Some people seek a higher limit because it can help reduce their credit utilisation ratio. Credit utilisation measures how much of your available credit you're using and is one factor that credit reference agencies may consider when assessing your creditworthiness.

For example, if you regularly carry a balance of £1,000:

1. With a £2,000 limit, you're using 50% of your available credit

2. With a £5,000 limit, you're using 20% of your available credit

Lower utilisation is generally viewed more favourably by lenders.

Advantages and disadvantages of increasing your credit card limit

There are pros and cons to increasing your credit card limit. These include:

Advantages

• Greater flexibility. Gives you more room to manage larger purchases or unexpected expenses

• Lower credit utilisation. Can reduce the percentage of available credit you're using

• Improved borrowing profile. Responsible use of a higher limit may strengthen future credit applications

• Emergency access to credit. Provides an additional financial safety net if needed

Disadvantages

• Risk of overspending. More available credit can make it easier to accumulate debt

• Higher repayments. Larger balances can lead to bigger monthly repayments and interest costs (if you don’t clear your debt in full each month)

• Potential affordability concerns. Taking on additional borrowing may put pressure on your finances

• Impact on credit report. Some requests may involve a credit check that could affect future applications

Is a higher credit limit right for me?

A higher credit limit can be beneficial if you manage your credit card responsibly, pay on time and have a genuine need for additional borrowing capacity.

It may be particularly useful if your income has increased, you regularly approach your existing limit or you're looking to improve your credit utilisation ratio.

However, a higher limit isn't suitable for everyone.

If you're already struggling with debt, finding it difficult to make repayments or are tempted to spend beyond your means, increasing your credit limit could make financial problems worse.

Before requesting an increase, consider whether you need more borrowing capacity or simply need to adjust your spending habits and budgeting.

How do I ask my provider to increase my credit limit?

Most credit card providers allow you to request a credit limit increase through online banking, their mobile app, over the phone or by contacting customer services.

The lender will review your request and assess whether they believe you can comfortably manage a higher limit.

Depending on the provider, you may receive an instant decision or need to wait several days while your application is reviewed.

What information will I need to request a credit limit increase?

You may be asked to provide:

• Your current income

• Employment details

• Monthly housing costs

• Information about other borrowing and financial commitments

• Updated contact details

Some lenders may already hold this information and simply ask you to confirm whether anything has changed.

Will my credit card provider increase my limit automatically?

Yes, many credit card providers periodically review customer accounts and may offer an automatic credit limit increase.

These reviews often take place after you've demonstrated responsible borrowing behaviour, such as:

• Making payments on time

• Staying within your credit limit

• Managing the account for several months or years

• Maintaining a good overall credit profile

If you're offered an increase, you'll usually be notified in advance and given the option to accept or decline it.

How long should I wait before asking for a higher limit?

Most providers prefer to see a period of responsible account management before considering an increase.

As a general rule, it may be worth waiting at least six months after opening a new credit card before requesting a higher limit.

If you've recently received a credit limit increase, it may also be sensible to wait several months before making another request.

Lenders typically want to see evidence that you can manage your existing credit responsibly before extending additional borrowing.

Will requesting a credit limit increase affect my credit score?

It depends on how your lender assesses the request.

Some providers conduct a soft credit check, which allows them to review your information without affecting your credit file.

Others may carry out a hard credit check, which will appear on your credit report and can have a small, temporary impact on your credit score.

Before requesting an increase, check your provider's policy so you understand what type of credit search may be carried out.

Regardless of the type of check used, simply asking for a higher limit is unlikely to have a significant long-term effect on your credit score.

Does having a higher limit help my credit score?

A higher credit limit can potentially help your credit score if it reduces your credit utilisation ratio.

Credit utilisation measures how much of your available credit you're using. Generally speaking, lenders prefer to see borrowers using only a relatively small proportion of their available credit.

Lower utilisation may indicate that you're managing credit responsibly and not relying heavily on borrowing.

However, a higher limit alone won't improve your credit score .

Making payments on time, avoiding missed payments and managing debt responsibly remain far more important factors.

Why might my credit card provider refuse to raise the card limit?

There are several reasons why a lender may decline a credit limit increase request.

Your income may not support additional borrowing, particularly if your financial circumstances have changed since opening the account.

The provider may also be concerned if you've missed payments, exceeded your credit limit in the past or accumulated significant levels of debt elsewhere.

In some cases, a decline may simply reflect the lender's internal risk policies rather than any specific problem with your finances.

Common reasons include:

• Insufficient income

• Recent missed or late payments

• High existing debt levels

• Too many recent credit applications

• Limited account history

• Poor credit history

• Changes in lending criteria

What can I do if this happens?

A declined request doesn't necessarily mean you'll never qualify for a higher credit limit.

Instead, treat it as an opportunity to strengthen your financial position before applying again.

Review your credit report for any inaccuracies, ensure you're making payments on time and focus on reducing existing debt where possible.

After demonstrating responsible borrowing behaviour for several months, you may be in a stronger position to request an increase again.

Steps to improve my chances of getting a higher credit limit

• Pay on time: Consistently making at least the minimum payment demonstrates responsible borrowing

• Reduce debt: Lower balances can improve affordability and reduce your credit utilisation ratio

• Update income: Make sure your provider has accurate information if your earnings have increased

• Use credit sensibly: Regular, controlled spending can show that you manage credit responsibly

• Avoid multiple applications: Too many credit applications in a short period may concern lenders

• Build account history: Longer relationships with a lender can increase confidence in your borrowing habits

• Check your credit report : Correcting errors may improve how lenders assess your application

Can I refuse an increased credit limit?

Yes. If your provider offers an automatic credit limit increase, you don't have to accept it.

Some people prefer to keep their limit unchanged to help control spending or avoid the temptation of taking on additional debt.

You can usually decline the increase through online banking, your provider's app or by contacting customer services.

Rejecting a credit limit increase should not negatively affect your credit score.

Can I lower my credit limit instead?

Yes, most providers allow you to request a lower credit limit.

Reducing your limit can be a useful way to manage spending, improve budgeting or reduce the risk of accumulating more debt than you can comfortably afford to repay.

Before lowering your limit, make sure it will still provide enough flexibility for your regular spending needs.

You should also remember that lowering your limit could increase your credit utilisation ratio if your balance remains the same.

What are the alternatives to increasing my credit limit?

A higher credit limit isn't the only way to access additional borrowing or improve your finances.

Alternative options include:

• New credit card: Applying for another credit card could provide additional available credit and access to introductory offers

• Balance transfer card : Allows you to move existing credit card debt and potentially reduce interest costs

• Personal loan : Can be suitable for larger planned borrowing with fixed monthly repayments

• Overdraft facility: May provide short-term access to additional funds through your current account

• 0% purchase card : Offers interest-free spending for a promotional period on new purchases

• Savings : Building an emergency fund can help cover future expenses without relying on borrowing

• Budgeting review: Reducing unnecessary spending may remove the need for additional credit altogether

Other useful guides

• What affects your credit score?

• What to do if you’re struggling to pay your credit cards

• Credit card fees and charges explained

• What type of credit card is best for me?

Compare credit cards with MoneySuperMarket

If you’re looking for a new credit card , then comparing options is quick and easy with MoneySuperMarket.

Just tell us a little about yourself and your finances, as well as what you want to use the new card for, and we’ll give you a list of deals tailored to your needs.

You’ll only know your credit limit once you’ve been approved, but you will be able to sort and compare deals by interest rate, any benefits or incentives, and how likely you are to get the card if you apply.

Once you’ve chosen the card you want to apply for, just click through to the provider to finalise the process.

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead, we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.