Credit Limit Increases and Large Approvals

1. 1

   PREPARE YOUR CREDIT PROFILE

   • Check for Late Payments: Ensure there are no late payments on your credit report for at least the last six months. Ideally, your history should be clear of any late payments.
   • Maintain Low Credit Utilization: Keep the utilization low on all primary accounts (those owned by you). Although being an authorized user can lower your overall utilization, banks might focus more on your personal credit lines.
2. 2

   UNDERSTAND BANK ASSESSMENTS

   • Learn About Credit Algorithms: Banks use complex algorithms that consider more than just your credit score to determine creditworthiness. They are generally understanding of situations like medical emergencies or job losses but might offer higher rates or lower amounts due to these risks.
3. 3

   ENHANCE YOUR CREDIT STANDING

   • Add High Limit Accounts: Before applying, if possible, add high-limit accounts to your credit report to influence your comparable credit. This step is crucial as banks often offer credit based on the average limits you already possess.
4. 4

   STRATEGIC APPLICATION PROCESS

   • Contact Banks: Call each bank you are interested in and ask which credit bureau they pull from and whether it involves a hard inquiry. This information changes frequently, so it's good to confirm first.
   • Apply Without Hard Inquiries First: Apply at banks that do not require a hard inquiry for checking credit to preserve your credit score for more significant applications.
5. 5

   OPTIMIZE YOUR APPLICATIONS

   • Wait for Updates: If approved, wait until the new higher limits are reflected on your credit report before proceeding with further applications.
   • Apply for New Accounts Before Increases: If you believe your credit limits are sufficient, consider applying for new accounts. Note: If you already have a card with a company, additional cards might not require a hard inquiry (e.g., American Express).
6. 6

   PRESENT YOURSELF AS LOW-RISK

   • Stable Residence: Indicate that you own your home or live with family.
   • Long-term Employment: Show stability in your job (2-5 years or more), ideally in positions that imply higher education or authority.
   • Employment Type: List your employment type as employed, avoiding the self-employed label; if self-employed, assign yourself a job title and salary.
   • Report High Income: Report a high annual income (minimum $100K recommended) since your credit limit approvals typically won't exceed 10% of your annual income.
   • Assets: If asked, declare assets between $500K to $1M, which could include property, inheritance, or overall net worth.
7. 7

   FINALIZE YOUR APPLICATIONS

   • Apply for Credit Limit Increases: Use your remaining hard inquiries to apply for new accounts or credit limit increases, noting that new inquiries might impact your ability to open additional accounts.