Asking For A Higher Credit Limit In These Tough Economic Times

If you’re hoping to call up your bank and ask for a higher credit limit, now may not be the best time to do so.  According to reports from many consumers, credit card issuers are denying requests for increased credit lines more so than ever.  With the economic situation in the tumultuous state that it is, banks are simply extra wary of giving consumers more credit and are assessing potential risks in ever stricter ways.

In the past, banks will look to your credit card use and payment history along with your credit reports to determine whether to give you a higher ceiling.  While that process continues today when you ask for a raise in your limit, they’re also looking at other factors which might peg you as a risk, many of which have no direct bearing on your personal credit history.

Now, more than ever, your entire credit line will likely be put under scrutiny.  If you’re having problems with any single credit line, forget about the raise, you’re not getting it.  Even worse, if other creditors that fall in a similar category of credit as you are having trouble making payments, your request may also be denied.

For instance, several credit card holders have recently been denied an increased credit limit because their mortgage is with Bank of America.  The reason, according to those interviewed, is that this bank has issued mortgages to a high number of people who have since defaulted on their loan.  Since they were also with Bank of America, the credit card issuer is anticipating that they might end up on the same boat.

If you’ve been denied a higher credit limit through no fault of your own (such as with the above), try escalating the issue to a supervisor.  Provided you can make a case for your credit-worthiness, you may just pull it off.  As a last resort, you may also explore the idea of severing ties with your current issuer and moving your credit card account and your balance elsewhere.