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Increasing the credit limit on your favorite credit cards can have a number of benefits. If your favorite credit card is American Express (or any other card), then you can use this guide to raise your credit limit.
Benefits of Increasing Your Credit Limit
So what are the benefits of increasing your credit limit with Amex?
It allows you to consolidate all of your regular purchases on to one card. This simplifies billing and reduces the likelihood of missing a payment due to disorganization. It allows you to take advantage of the maximum rewards on your credit card by using the credit card more. And, of course, it makes it easier to make large purchases.
An added benefit is that steady credit limit increases have the potential to improve your total credit score.
Make Yourself Worthy of More Credit
Before you go through the actual process of requesting a credit limit increase from American Express, you will want to make yourself more credit-worthy. This increases the likelihood that your request will be granted.
To do this, you want to review and update your credit report, double-check your payment history with American Express, and consider your current employment situation.
Before you apply for your increase, you will want to order a copy of your credit report and review it. Many times, there are mistakes on credit reports.
Fixing these mistakes can improve your credit score and make it more likely that you will get your increase. Additionally, you can review the report to see if there are any items you can pay off to improve your credit.
Make sure that you also specifically check your payment history with American Express. Hopefully you always make on-time payments because a history of late payments with the company isn’t going to make them inclined to raise your credit limit.
Review your payments history for the past 6-12 months. If you have any late payments you may want to wait a few months until you make your request.
The main aspect that American Express looks at when making their decisions about credit limits is the amount of debt the individual has compared to the amount of income that they have.
You can do two things to increase your chances of getting a credit limit increase. First, increase your income if at all possible. Second, pay down your debt. A lower total debt (even if it is only temporary) will make you a more likely candidate for a credit limit increase.
Make the Request for a Credit Limit Increase
If you are ready to make the request for a credit limit increase then you can do so through your online account with American Express.
Go to American Express’s website and enter your user name and password to log in to your account. A list of your current American Express credit cards will appear so that you can select the one for which you are requesting an increase.
When you have gone into your account, you will see a menu of options on the left side of the screen. Click the tab for the option that says “credit and balance transfers.”
A new window will open and one of the links in the window will be “increase your line of credit.” Click on this link.
You will be asked to enter the four-digit number from the front of your American Express card. Then you will go to a short form that you need to fill out in order to complete the request.
Make sure that you provide accurate information on this form to increase the likelihood that your increase will be easily approved.
If you have any problems, can call the American Express phone number to speak with a customer service representative about getting your credit limit increased.