Hey everybody welcome back to my channel everybody. Thank you so much for all your support, I'm loving all the feedback, all the comments, the interaction that we have. I love taking the time out to talk to everybody. Please keep that going like a subscriber share.

This page also check out my affiliate links at the bottom of the video, so if you're applying for Amex cards make sure they'll, you know apply under my link, any shopping on Amazon make sure to do that as well. Today's topic is going to be about credit limit increases how to get a credit limit increase, I'm going to make it very fast, very easy and the pros the cons why somebody may want one and why you should not want one. Let's get right into the video. All right, so what is a credit limit increase? A credit limit increase is when a customer or consumer.

Let's put this in you, you you as a customer, you want to get an increase on the amount of money that you can use, that a credit card company will give to you. So we are talking solely about credit card limit increases. So let's say, for example, you have a chase freedom car, which is one of my favorite cards: five percent cash back rotating categories - we're going to be talking about q1 very soon, but let's get back to the topic. So you have the Chase Freedom Card and you have in a thousand dollar credit limit and you want to now get to a five thousand dollar credit limit or ten thousand credit limit, etc.

So that's what it increases alright. So there's a couple of different ways that you can get one, but that is what a credit limit increase is so the first way you can get one you can always ask. You can always ask your credit card company for a credit limit increase. Now you do want to be careful, and you do want to make sure you were speaking to somebody before you do so most of the time they'll tell you if it is a hard inquiry on your credit, which means they're actually going to pull information from your Credit report and it's going to have some type of effect on your credit score.

Maybe a few points here or there to see. If you are, you know you have the chance to get a credit limit increase, it's not a guarantee, so you want to be really careful with that. If it's something that you need - or if is just something that you think you want, I like to kind of go with the companies that do the soft pools so they're, you know again, you want to speak to your company. I know I believe, and I can be wrong, but I believe chase doesn't heart inquiry but a place like American Express.

I know for a fact because I actually just did it. I had a eight thousand dollar limit and I was just I just never really. You know cared because I don't really use the car much and I just put on the website that I wanted twenty thousand and they gave me fifteen thousand seven hundred okay. So that's my credit limit increase.

It was no hard inquiry was a soft inquiry and it took effect within about five minutes. Okay, I'm not going to go and use 15,700, but here's the reason why I did it and I'll tell you about that later. The second way you can get it pretty much, not doing anything. Okay, most companies do they see that you are responsible with your payments you're using a card, often they're, going to just go ahead and increase you.

Sometimes they do it without your permission. Sometimes they just tell you: sometimes they actually, if you want to get an increase, so those are actually the two ways that you can get one you can have an ask. You can either just do your normal spending, maybe updating your income, often like an American Express you update your income chase. You can update your income.

Those are the two ways you can do so for updating your credit limit. Now. Why would somebody want to get it so my situation? If I don't even use the card much? Why would I want to get an increase from about eight thousand to fifteen thousand? Well: here's why your credit utilization lowers okay, so when they look at your credit utilization, it is a total of all of your balances. What that means.

It is pretty much a debt. So how much you use on your credit cards versus the amount that you have so let's say I have a one thousand dollar credit limit total for all my cards: okay versus somebody who has ten thousand dollars on all their cards. We both spend $ 300. My percentage rate, my Mike my percentage for my credit utilization, is 30 %, because I only have $ 1,000 to my disposal, but that other person, if they have 10,000 and they spend the same amount of money, three percent utilization, which is a lot better in the Eyes of the lender, because they're not looked at as much as a risk.

Okay, they have things. You know they have a lot more money, it's in our disposal, but they don't use it. The percentage is a lot lower. Okay, it's 27 percent lower.

Okay. So that's why somebody we really wanted. That's the only reason I do it and I only do it if it's a soft inquiry, if it is a hard inquiry, I do not use it. Okay now other people may want to do it.

People who are trying to get you know signup bonuses, and things like that. Sometimes you know you'll have a card where you have to spend. You know four thousand in the first three months. Well, it's gon na be really hard to do so and you're going to be really cutting it close.

If you only got a you know, one thousand dollar limit, so some of the signup bonuses you may have to try to catch up on or you may want to make big purchases and get points. So maybe you want to go on a vacation say a cruise or you know you know Christmas times coming up, you want to make a big purchase and get points and things of that nature. It's going to be really hard to do so in a smaller line. For your credit card and your credit card limit, so that's that's the reason people do it now.

The reason people should not do it. You don't want to go out there and just splurge on things just because you don't want to just go out there and just just buy things you don't need. That is one thing you want to stay away from we're trying to teach you guys to get out of debt and not go more into it. You also may want to have it, and this is a good on.

This is a good observation. People don't maybe think about this life happens, people get sick, people lose jobs, people and credit card companies do not want to lend to you when you need it, okay, so if you're out of a job now you have no income at that point, it's kind of Too late, so you want to kind of have these things already and play okay. So if you've got 20,000 or 40,000 or 50,000 that you buy in no way shape or form, you know make sure that is like your last resort. You don't ever want to be in credit card debt, but if you really need to put some things on your card for emergencies, you have that to your disposal.

So you want to kind of make sure you are set and you're. You know you're making sure you have like some type of safety net. Okay, so that's another reason why somebody would want to do so. In a positive perspective, again, credit limit increases are awesome, again: utilization emergencies at the last last last resort and also, if you want to make big purchases and get points and meet sign up, bonus requirements, etc.

Let me know what you think you know. Let me know what you guys are kind of working with right now. Did you just get an increase? Do you want to increase what companies do you have all that good stuff like share and subscribe? If you found this video helpful, thank you so much tuna.