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by Daniel | Last Updated Sept 30th, 2021 We may earn a commission for purchases using our links, at no cost to you. If you’re wondering how you can get a credit increase on your credit card, I'm going to go through simple steps that can make the process a little easier. https://www.youtube.com/watch?v=tl9VmcibzOM Why Would You Ask For A Credit Increase? Well, the first obvious benefit of getting a credit increase is that you increase your spending power, which can be very helpful if you want to make larger purchases on your credit card.But this is not the only reason why it can be beneficial.One of the main reasons to ask for an increase in credit is because it will help to lower your credit utilization, and this is extremely important as it will increase your credit score.A simple example of this would be if your credit limit was $2,000 and on average you spend $1,000 per month on your credit card.This would put your credit utilization at 50%, which is quite high, it is recommended that you stay at or below 30%.So, if you were able to get a credit increase to $4,000, in this example your credit utilization would be 25%.Having a good credit score is very important when it comes to borrowing money for purchases such as a Mortgage or Auto loan, as with a high credit score more lenders are likely to want to do business with you than with someone that has a lower credit score.A high credit score will also give you access to lower lending rates, which in the long term will save you a ton of money. Things To Do Before Asking For A Credit Increase So you could just ask for a credit increase with no preparation, but it makes sense to be prepared and have all of your credit-related information up to date.And the will improve the chance of you getting approved for a credit increase and should speed up the process as well.The first thing you will want to do is to check your credit report to make sure there are no errors, as it is possible that there may be incorrect data or even fraudulent activity on your account.If this is the case, it is important to fix this before applying for a credit increase.If you have any other credit cards it would be wise to pay off as much credit owed as possible on them as this will help with the process of getting approved. When Not To Ask For A Credit Increase It’s important to know that sometimes it is not a good time to ask for a credit increase, for example, if you have had a decrease in the hours you work, your income has dropped or you have applied for other lines of credit. How to Ask for a Credit Increase Now when it comes to applying for a credit increase, there are a few options. The quickest and easiest way is to apply online, which can usually be done once you are logged into your account.And this is fine to do if you believe that you have a good case for a credit increase.This would include things such as a recent pay rise, or you may be earning slightly more money from a side hustle.Another way to go about it is to actually call your credit card issuer and talk to someone.This way you can get more information about whether they think it’s a good idea or not.They will also be able to tell you if they will use a soft inquiry or a hard inquiry when checking your credit score.And this is quite important, first of all, a soft inquiry is ok as it is unlikely that it will affect your credit report, whereas a hard inquiry will show up on your credit report and remain there for up to 2 years, and this will also lower your credit score for a short period of time. What If You Are Approved? If everything works out and you are approved for a credit increase it is important to be extremely careful and not over-spend just because you have access to more money.Unless you need the credit increase for a specific one of purchases, make sure you stay within your budget and try to keep your credit utilization below 30%. What If You’re Not Approved? In this instance, you could try applying for a new credit card, and if you are approved you will have access to more available credit, and if you distribute your spending correctly between the two cards, you should lower your credit utilization.Another benefit of getting a new card is you will be able to take advantage of a welcome bonus, possible travel rewards, or maybe a low APR. Final Thoughts If you’re not approved for a credit increase due to a low credit score why not learn more about how to increase your credit score by reading my review here.