Your credit card limit is the maximum amount you can borrow at a time. Increasing your limit could potentially increase your spending power and also help improve your credit score by lowering your credit utilization rate — the percentage of your available credit that you're using at a given time.

After your account has been open for at least a few months, you can technically request a credit limit increase at any time. But if you want to maximize your odds of getting approved, there are certain factors to keep in mind. Here's what you need to know about when and how to increase a credit card limit.

When is the right time to increase my credit card limit?

When you first apply for a credit card, the card's issuer will determine your credit limit based on your credit history, income, and other debt. If those details haven't changed since you opened your account, your odds of getting a credit limit increase may be low.

That said, here are some situations where it could make sense to ask your card issuer to increase your credit card limit:

• Your income has increased: If you've received a raise at work or switched to a higher-paying job, you'll be able to handle higher monthly payments. Note that your card issuer will typically ask you to provide documentation for your new income.

• Your credit score has improved: A higher credit score indicates that you're less at risk of defaulting on your debt payments. As a result, your credit card issuer may be willing to extend more credit.

• You've used the card responsibly: If you've missed payments or maintained a high balance on your card, you're unlikely to get your credit line increase request approved. But if you've always paid on time and used the card responsibly, your odds will improve.

Keep in mind, though, that there's no magic formula for these factors. Even if your creditworthiness and financial situation have improved, it may not be enough to qualify for a credit limit increase. Also, if you've opened other credit cards or loans since you opened the card, that can also make it difficult to get approved.

Also, note that if you request a credit limit increase, your card issuer may run a hard inquiry on your credit reports, which can temporarily knock a few points off your credit score. So, try to avoid asking unless you're confident you can get approved.

How to increase your credit card limit

If you believe you're a good candidate for a credit limit increase, there are a few different ways you can submit a request:

• Call your card issuer: Get on the phone using the number on the back of your credit card. When talking to a representative, be polite and clear about why you believe you qualify for a higher credit limit. If you're given the chance to ask for a specific amount, try to keep it reasonable, such as 10% to 25% higher than your current limit.

• Send a secure message: Chase, which offers top-tier rewards credit cards like the Chase Freedom Flex℠ and Chase Sapphire Preferred® Card, allows you to submit a request and ask other questions about your account via secure message in your online account.

• Apply online: With American Express, which offers premium credit cards like The Platinum Card® from American Express and the American Express® Gold Card, you can request a limit increase through the account services feature.

• Wait for an increase: Some credit card companies may periodically review your account and credit history and increase your credit limit on their own if they like what they see. Some cards, like the Chase Freedom Rise℠ Credit Card and Capital One Platinum Credit Card, specifically say you'll be considered for an increase in as little as six months after you get approved. Some secured credit cards, including the Capital One Quicksilver Secured Cash Rewards Credit Card and the Capital One Platinum Secured Credit Card, may even increase your credit limit without requiring an additional deposit to secure it.

What to do if your request is denied

There's no guarantee that your request to increase your credit limit will be approved. If the card issuer does deny your request, here are a few steps you can take:

• Review the reasons: Your card issuer will send a letter detailing the reasons for the denial. Examples may include insufficient income, too much available credit, and recent credit applications. This notice will give you clues on how to proceed.

• Avoid submitting another request too soon: It's generally best to space out your credit limit increase requests by at least six to 12 months, so you'll have some time to improve your chances of getting approved.

• Pay down balances: It's best to have a low or even a zero balance when requesting a credit limit increase. If you're hoping for more available credit because you're regularly bumping up against your limit, that could be a red flag for your card issuer. Make it a goal to pay down your credit card balance and keep it low for a while before submitting another request.

Increasing your credit limit can help improve your credit score and give you a bit more spending power with your credit card. However, it's important to understand what factors credit card companies consider when you submit a request and what your options are if you don't qualify.

Additionally, consider whether applying for a new card or paying down your credit card debt will give you better results based on your situation.

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