Credit scores
How to Increase Your Credit Limit in Canada
How to ask for a higher credit card limit in Canada, what issuers look at, whether it affects your credit score, and why your bank needs your consent for every increase.
How do I ask for a credit limit increase?
Through your bank’s app or online banking, by phone, or in a branch. You will usually be asked for your current income and housing costs.
Issuers are more likely to approve an increase if you have paid on time for at least 6 to 12 months, your income has gone up, and you are not using most of your current limit.
Put it into practiceWhat is credit utilization?Can my bank raise my limit without asking?
No. Federal rules require your express consent for each credit limit increase. Using the card does not count as consent, and a blanket consent for future increases, such as a checkbox on an application, is not allowed. If you agree by phone, the bank must confirm it in writing by your next statement.
Does asking for a higher limit hurt my credit score?
It depends on the issuer. Some review your file with a soft check that does not affect your score; others do a hard inquiry, which can lower it slightly for a while. Ask which type they will use before you apply.
| Balance | Limit before | Utilization | Limit after | Utilization |
|---|---|---|---|---|
| Top$1,500 | $3,000 | 50% | $6,000 | 25% |
| $2,500 | $5,000 | 50% | $8,000 | 31% |
| $4,000 | $10,000 | 40% | $15,000 | 27% |
Once approved, a higher limit usually helps your score by lowering your credit utilization.
What if my request is declined?
Keep paying on time, lower your balances and try again in 6 months, or after your income changes. Ask the issuer what would help; some will tell you.
Should I ever lower my limit?
If a high limit tempts you to overspend, you can ask to lower it at any time. Keep in mind that a lower limit raises your utilization on the same balance.
Keep reading
Credit scoresHard vs Soft Credit Checks in CanadaWhat counts as a hard or soft credit inquiry in Canada, which one can lower your score, how long inquiries stay on your Equifax and TransUnion reports, and how to shop for a loan without extra damage.
Credit scoresWhat Is Credit Utilization in Canada?Credit utilization is how much of your available credit you are using, and it is one of the biggest factors in your credit score. How to calculate it and how to keep it low.- Credit scoresHow to Improve Your Credit Score in CanadaNine steps that raise a Canadian credit score, in order of impact, with how long each takes to show up.
- Credit scoresDoes Closing a Credit Card Hurt Your Credit Score in Canada?Closing a card can lower your score, mostly because you lose its credit limit and your utilization rises. When it is worth closing anyway, and how to do it without losing rewards.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value