The line of credit refers to the total maximum amount that you can use to make purchases for your credit card. While the point is arguable, in general, the higher your line of credit, the more desirable it is. Most banks and credit card companies will issue a standard line of credit for the average customer. There are exceptions, of course, and some will grant a lower or higher line of credit, depending on the specific circumstances.
People who have relatively low lines of credit will want to increase this limit for one reason or another. Perhaps a large purchase is impending. Perhaps the limit is just too low to cover more purchases. Whatever the reason, one can request for an increase in his line of credit. These days, this request may done online. This is especially true if one’s account has online access as most credit card companies will have that option to increase the line of credit via the personal online portal. Alternatively, one may call the customer service hotline for assistance.
There are certain factors that credit card companies look at when evaluating a request for an increase int he line of credit. These factors may differ depending on the credit card company, but in general, the following things are considered: the existing line of credit, the payment history, and the existing balance.
Sometimes, one does not even have to request for an increase in his line of credit. There are circumstances when credit card companies will automatically increase the customer’s line of credit.