Requesting an increase in your credit limit

If you find yourself needing the ability to spend more with your credit card, you might consider requesting a credit limit increase. While it can be useful to have more flexibility, there are always considerations to keep in mind when adjusting your finances.

Review our guide to determine if increasing your credit limit makes sense for your current financial situation, what factors are considered and how to submit a request.

Increasing your credit limit means that your bank will allow you to put more purchases on your credit card before hitting your credit limit. This can be useful for a variety of situations.

• Having more spending power can help pay for large purchases, like a wedding or home improvement project.
• If an unexpected or emergency expense comes up, like an unforeseen injury or natural disaster, having the ability to spend more on your credit card may give you peace of mind.
• Having a higher credit limit may actually help your credit score by lowering your credit utilization ratio. Lenders typically like to see you use less than 30% of your total available credit. Having a higher limit can both give you some breathing room and help you out if you’re often spending at a higher ratio.

The fastest and easiest way to apply for a credit limit increase is by submitting a request through the CIBC Mobile Banking® App or CIBC Online Banking®. Sign on and go to your credit card details page to find the option to “Apply for a Credit Limit Increase.”

We’ll reply to your request right away. If you’re approved, your new limit will be available to use immediately.

For help with your request, call the number on the back of your card to speak with a customer service representative.

Credit limit increases aren’t guaranteed. Part of our approval process for credit limit increases includes looking at how responsibly you use your card.

It can be disappointing to be declined, but there are many factors that go into making this decision. Here are some examples of why a higher credit limit may not be approved:

• You spend over your limit, incurring past due or insufficient funds charges
• Your payment history on all your credit cards or lending products
• You carry a high balance on your credit card and on other lending products

Have you had a credit limit increase in the last 6 months?

You're often unable to receive a credit limit increase if you’ve already been approved for one within the last 6 months.

When you got your last limit increase, it was based on your account activity in the months prior to your application.

In order to fully understand your spending and payment habits at your new limit, we need at least 6 months of activity to be able to make a full assessment.

Has your credit card been open for less than 6 months?

We don’t regularly offer credit limit increases to new accounts.

When you opened your credit card account, we assigned your maximum credit limit based on the information you provided on your application, along with data collected from credit bureaus to get a full picture of your financial situation.

We need to see at least 6 months of activity on your card before we can determine your eligibility for a credit limit increase.

Here are some tips on how to improve your chances of approval for a credit limit increase:

• Make your credit card payments on time and pay more than the required minimum payment whenever possible
• Ensure there are no late payments or payments returned for insufficient funds
• Maintain a good use of credit by keeping a low outstanding balance in comparison to your credit limit

Having the ability to spend more on your credit card can be useful, but there are some drawbacks that come with a higher limit:

• Being able to spend more also means it’s possible to end up with a higher amount of debt if you don’t use your card responsibly.
• Requesting a credit limit increase may result in a “hard” credit check, which may affect your credit score.
• A higher credit limit may affect your eligibility for other types of lending, like home mortgages or auto loans. If you anticipate applying for a larger loan in the near future, consider waiting to request a credit limit increase on your credit card.

To check your credit score for free, sign on to mobile or online banking. In the “More” menu, select “Check Credit Score.”

Tools and advice

• The benefits of having multiple credit cards
• How your credit limit is determined
• Paying off your credit card debt