Introduction


Getting approved for a credit card with a high limit can be challenging if you have a limited credit history or financial difficulties in your past. However, there are steps you can take to improve your chances of qualifying for a card with a higher credit limit. 


The goal is to demonstrate to lenders that you can responsibly manage credit. By taking steps to build your credit score, lower your credit utilization ratio, and strengthen your credit profile, you can increase your odds of getting approved for a card with a higher limit. This allows you to make larger purchases, finance bigger expenses over time, and avoid hitting your credit limit too frequently.


In this guide, we will cover the main strategies to get a credit card with a high limit approved, even if you have past financial challenges. The key steps include checking your credit score, paying down debts, becoming an authorized user, disputing errors, allowing negative information to fall off your report, applying for a secured card, and finally submitting applications for desirable unsecured cards. While it takes time and diligent effort, with a strategic approach, those with less-than-perfect credit can work their way up to being approved for a card with a generous limit.


Check Your Credit Score


Your credit score is one of the most important factors lenders consider when deciding whether to approve you for a credit card, and what credit limit they will offer. Your score provides a snapshot of your creditworthiness and allows lenders to evaluate the risk of lending to you. 


Before applying for a high-limit credit card, it's crucial to check your credit score so you understand where you stand. There are a few ways to check your score:


  • Obtain your credit report from AnnualCreditReport.com, the government-authorized website that allows you to access your report from each bureau (Experian, Equifax, and TransUnion) once per year for free. Your score should be included with the report.
  • Use a free credit score service like Credit Karma or Credit Sesame. They provide free access to your VantageScore, which is a credit score model similar to a FICO score. 
  • Purchase your FICO score directly from myFICO.com or from a credit monitoring service that provides your FICO score. This is the most accurate way to know your credit score.


In general, you'll want a credit score of at least 670 before applying for a premium rewards credit card with a high limit. A score of 720 or above is ideal and will make approval more likely. Anything under 650 will make approval very difficult.


Knowing your score lets you determine if you need to take steps to improve it before applying. Regularly monitoring your credit score also allows you to see the impact of positive credit habits over time.


Lower Your Credit Utilization


Credit utilization refers to the percentage of your available credit that you are currently using. This factor makes up a significant portion of your credit score. The lower your credit utilization, the better it is for your score. Here are some techniques to decrease your credit utilization:


  • Make payments toward your credit card balances to lower your outstanding balances. Even if you can't pay off the full amount, try to get the balances down as much as possible.
  • If you have multiple credit cards, consider shifting some of your balances around to even them out. Don't max out one card while leaving others empty.
  • Ask for credit limit increases on your existing cards. This raises your total available credit and therefore lowers your utilization.
  • Open a new credit card. While this can ding your credit initially, a new account will increase your available credit and help dilute high balances on other cards. 
  • Use less of your available credit each month. Spend conservatively and avoid charges that take your balances over 30% of your limits.
  • Pay down your balances before your statement's closing date. This ensures a lower balance gets reported to the credit bureaus.


The lower you can get your credit utilization, the quicker your score will start to increase. Stick to low balances each month and you'll see results over time.


Request Credit Limit Increases


One of the best ways to increase your credit limit is to request higher limits on your existing credit cards. This strategy can help improve your credit utilization ratio, which makes up 30% of your credit score. 


Your credit utilization ratio is the amount of credit you're using compared to your total available credit. For example, if you have $10,000 in total credit limits across all your cards and you're carrying $5,000 in balances, your utilization ratio is 50%. Experts generally recommend keeping this ratio below 30%.


Requesting a higher limit from your credit card issuer is an easy, no-cost way to lower your utilization and improve your score. Here are some tips:


  • Ask for at least double your current limit. This will make the biggest impact on your ratio. But don't go overboard and request an unrealistically high number that may get rejected.
  • Time your requests strategically, such as after 6 months to 1 year of on-time payments. Issuers like to see a strong payment history first.
  • Check your credit report and score. A score over 700 gives you good odds for approval. Pay down balances first if needed.
  • Call the issuer and politely ask about getting pre-approved for a higher limit. Be prepared to provide your income. 
  • Consider asking for higher limits on cards with no annual fee first. Then ask on premium cards where you can get more value from perks.
  • If denied, wait at least 6 months before trying again. In the meantime, work on improving your score.
  • Be sure to continue making on-time payments after getting a higher limit. The higher limit does no good if you max it out again.


Limit increases of even $1,000 or $2,000 can make a big difference in lowering your credit utilization. Just be sure to spend responsibly with the extra credit. Maintain low balances and you'll be on your way to establishing excellent credit.


Pay Down Debts


One of the most effective ways to raise your credit score is to pay down your credit card and loan balances. This lowers your credit utilization ratio - the amount you owe compared to your total credit limit. For the best credit score boost, your total revolving utilization across all cards should be below 30%. 


Aim to pay off credit card balances in full each month if possible. At a minimum, make at least the minimum payment to avoid late fees and hits to your credit. On installment loans like car loans or student loans, make sure to pay each monthly payment on time. Consider paying extra to pay loans down faster.


If you can't pay everything down now, focus on paying down your highest interest rate debts first. Credit cards often have much higher interest rates compared to student loans or mortgages. Pay as much extra as you can each month towards the high rate cards or loans. Once those are paid off, move to the next highest rate debt. 


The lower you can get your balances relative to limits, the more it will help raise your credit score. Sticking to a debt payoff plan takes discipline, but it can significantly improve your credit standing over time. A higher score makes it much easier to qualify for credit cards with higher limits and better terms.