When you request a credit limit increase from your credit card provider, your current debt-to-income ratio and your projected debt-to-income ratio after the increase are considered. While raising your credit limit is a good way to boost your credit score, it may not prove to be so easy. After the financial crisis of 2008 and 2009, most banks are a little more cautious when evaluating credit they offer consumers, including credit card debt.
Many consumers are turned down for a credit limit increase due to insufficient income. The credit card issuer wants to see an income that can reasonably support the amount of credit requested. For example, if you only make $20,000 per year, do not expect your credit limit to be increased to $15,000. The issuer also looks at your past payment history with both its institution and any others you have held an account with by pulling and reviewing your credit history report. These play an important role when the credit analyst with the card issuer reviews your request for a credit limit increase. The analyst determines whether to approve your request by comparing these factors against the lender's guidelines to create a risk assumption.
If you are declined for the credit limit increase you have requested, consider submitting another request for an increase to a lower amount. Sometimes, the credit card issuer counters your request and offers a lower credit limit that it supports. Alternatively, you may seek out a credit card issuer that can offer you more lenient terms.