Tips & Tricks: How to Increase Your Amex Credit Limit In Seconds
Having a large credit limit is very important because it is closely related to your credit utilization. Now credit utilization is one of the most important components of the FICO score, worth 30% of your score to be exact. With that in mind, it’s almost impossible to get a large credit limit without having an already established credit history. I have multiple friends that have been in positions where it’s hard to collect miles/points with only a $500 credit limit.
For those with an American Express (Amex) card. You have the opportunity to increase that limit within a matter of seconds. Instead of waiting for Amex to increase your credit limit you can personally request to increase your limit up to 3 times your balance amount. The great thing about AMEX is that they do not do a hard pull for their credit limit increase requests. Today, I will show you how to can request an increase.
1. Log into your account.
2. Click on “Account Services”
3. Click on Credit Management > Increase Line of Credit
4. Enter your 4-digit security code on your AMEX card
5. Enter the amount you want to increase to and annual income. For your increase, only limit it up to 3 times your balance (e.g. $5,000 balance so request only up to $15,000). In addition, if you request an amount more than $25,000 Amex sometimes will request additional support. Like requesting a 4506T form which asks if Amex can obtain your tax return transcript from IRS in order to verify income.
I had a Starwood Preferred Guest card with a limit of $10,500. I decided I wanted to put in a request to increase up to $24,000 and I was instantly approved. Now my overall utilization will be even lower and I didn’t have to take a hard inquiry to achieve it.
Questions & Answers:
Q: Will there be a hard inquiry when requesting a credit limit increase?
A: With Amex there is no hard inquiry. As Amex will base their decision off the soft inquiry they pull on your account. It is common for Amex to have pulled a soft inquiry on your account at least 3-4 times in a year.
Q: When can you request a credit limit increase?
A: You can request an AMEX credit limit increase after 60 days your accounts has been opened or at least 6 months after your last credit limit increase.
Q: If I have multiple Amex cards, can I request a credit limit increase for each card?
A: Yes you may. However, the 6 month rule applies to all cards held by the same cardholder.
Q: Can you request a credit increase on same card after 6 months?
A: Yes, this is a perfect way to get a low credit card limit to a high credit limit in a year (e.g. increase your limit from $2,500 to $7,500 then to $22,500 in a year).