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Your credit limit is an important factor when determining your credit score. How much credit a lender is willing to loan to you is an indicator of your credit risk to other lenders. Larger credit limits can boost your credit score, which opens the door for better interest rates when you're ready to take on a car loan or mortgage.

So how do your increase your credit limit? In this blog, we'll go over some of the options that can help you accomplish that.

Apply for a New Card

One of the easier ways to increase the amount of credit you have is to simply apply for a new card. If you have been good about making payments on the credit cards you already use, you may be able to receive approval for a new card.

The limit on your new card may be the same as your existing one, but using this method is an easy way to quickly increase your credit limit, as long as you intent to use it responsibly.

Consumers Credit Union offers a variety of Visa Credit Cards with different rewards and generous credit limits.

Ask to Increase Limit on Current Card

You can also contact your credit issuer for a credit increase online or over the phone. This method will require a credit pull, which will slightly lower your credit score.

Explain to them why you are worthy of receiving a credit increase. Maybe you've been a longtime customer without an increase in awhile, or your income has dramatically increase since you last asked. Be respectful when asking and keep your request modest to increase your chances.

Wait for Natural Increase

It's not the quickest method, but patience may lead to an increase. Check to see if you credit card issuer institutes automatic credit increases. If they do, ensure that you make your payments on time, and utilize your card enough to demonstrate that a credit limit increase will benefit you.

Ask for a Balance Transfer

If you don't want to open up more than one credit card, you may be able to do a balance transfer onto a different card with a higher limit.

This option usually comes with an associated fee, but you may also get an interest rate that is temporarily lower as an incentive to upgrade your credit card.

Apply for a Consumers Credit Union Visa Credit Card and select "Balance Transfer" is you are interest in a balance transfer to one of our credit cards.