Get a credit limit increase with a Bank of America card
Getting a credit limit increase on your Bank of America card can be helpful, whether you need to make a…
Getting a credit limit increase on your Bank of America card can be helpful, whether you need to make a large purchase or need to build a bigger financial cushion. Sometimes Bank of America offers a limit increase without a request.
“Credit limit increases are generally offered to consumers who have demonstrated very good credit habits, tend to have lower limits initially and the creditor wants to continue to be the card of choice,” said Jeff Richardson, door -speech of VantageScore. “So they proactively offer a credit limit increase. ”
If you want a credit limit increase on your Bank of America card, here’s how to do it and if the decision could affect your financial health.
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Who is eligible for a credit limit increase with Bank of America?
Bank of America does not set out specific eligibility requirements for receiving a credit limit increase.
If you’ve used your Bank of America card responsibly, you have a good chance of getting your credit limit increased. The company sees the extra credit as a reward, according to Jason Gaughan, head of credit cards at Bank of America.
“At Bank of America, a request for a credit limit increase is largely assessed on a customer’s credit history and how they manage their accounts,” he says. “To make sure you’re in good standing, adopt healthy financial habits, including planning your card use, spending within your means and paying on time.
What to do before requesting a credit increase?
Consider checking your credit report and, separately, your credit rating to see if it is bad, fair, good, or exceptional before requesting a line of credit increase.
You can access a free credit report each week from each of the three national credit bureaus until April 20, 2022, on AnnualCreditReport.com. Your credit card issuer can offer you a free overview of your credit score, or you can use Experian Boost or Discover Credit Scorecard to get free FICO scores.
Your credit report will show your Bank of America card balance and other accounts. High balances and missed payments can keep you from getting a credit increase, says Richardson.
You will need to demonstrate at least 12 months of good credit habits before requesting a raise, he suggests. “And that includes keeping the balances low,” says Richardson.
Also, think about your reasons for requesting a line of credit increase. A higher credit limit could cause you to over-spend.
“The higher your credit limit, the greater your potential balance that you will need to pay off,” says Richardson. “If you’re having trouble paying your balance now, think twice about getting a raise. ”
[Read: Best Cash Back Credit Cards.]
How to request a credit limit increase with Bank of America
If you are eligible to request an increase online, you will be able to log into online banking, select your card, and then choose the “request a credit limit increase” link under Card details in the account summary. You will need to call the number on the back of your Bank of America credit card if you cannot apply online.
You can request an increase in your credit limit anytime online or over the phone. “Applications are assessed individually by our finance team based on financial history and income,” says Gaughan.
What to do if your request is refused
Your request for a credit limit increase may be refused for a number of reasons.
If your account is new or if you’ve recently received an increase in your credit limit, you’ll likely be turned down, according to the Experian credit bureau. “Usually, credit card companies give an increase on an annual basis, although there is no absolute,” Richardson said.
Your application could also be rejected if you have a low credit score, earn insufficient income, don’t use your card often, mainly make minimum payments, or have delinquent credit accounts.
Bank of America will provide a note explaining why an increase was not approved. The idea is to help cardholders “understand where and how they can improve to qualify for a raise in the future,” says Gaughan.
[Read: Best Low-Interest Credit Cards.]
How Can Increasing Your Credit Limit Affect Your Credit Score?
As long as you don’t increase your spending with your limit and continue to make payments on time, your credit score won’t be affected by the change. In fact, a higher limit might help, as it can lower your overall credit utilization rate, an important factor in calculating your credit score.
Bank of America also uses a gentle pull, which doesn’t hurt your score, to approve the increase.
However, you could hurt your score and create stress if a higher limit causes overspending and difficulty paying off debt. An increase in the credit limit can only be helpful if it is used responsibly.
Otherwise, says Richardson, “It can put a lot of strain on your financial health. ”
At the same time, an increase in the credit limit has certain advantages. You can make larger card purchases that were once impossible and earn rewards for them.
The key is to make timely payments and only buy what you can afford. “You really have to be disciplined,” says Richardson.
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Get a credit limit increase with a Bank of America card originally appeared on usnews.com