I Asked for a $100,000 Credit Limit. Here's What Happened

Go big or go home.

If you want a higher credit limit, most card issuers let you request it online or by phone. Not only is this a way to get more spending power with your credit card, it could also be good for your credit score.

When you try to increase your credit limit, some card issuers ask you the credit limit you want. This can be a tricky question. It's hard to know how much you should ask for, and if it's better to aim high or be more conservative. You may also wonder what would happen if you asked for a huge increase. Will it ruin your chances of getting anything?

I recently found myself in this exact situation, and I decided to ask for a very high credit limit. Here's why I think that's a better approach and what happened with my ambitious request.

Why it's good to aim high with your credit limit

Your credit limit is important, first and foremost, because it determines how much you can spend with your credit card. If you spend about $5,000 per month, but your card has a $2,000 limit, then that's going to be inconvenient for you.

In addition, your credit limit also plays a large role in your credit score. One of the factors that matters most in your credit score is your credit utilization ratio. This is the ratio between your credit card balances and your credit limits, and the lower the ratio is, the better. It's generally recommended to maintain a credit utilization below 30%.

It's easier to maintain low credit utilization if you have high credit limits. For example, if you have a $10,000 credit limit, you ideally should keep your balance below $3,000. But if you have a $50,000 credit limit, that 30% threshold pushes up to $15,000.

That's why you should ask for a higher credit limit at least once a year. Now, some card issuers only let you put in a request, and if they approve it, they decide how much to give you. Others go a step further and ask how much credit you want.

If your card issuer asks how much credit you want, don't be afraid to ask for a large amount. Your card issuer probably already has a maximum it's willing to offer you. Let's say that number is $20,000. Here's what's most likely going to happen based on how much you ask for:

• If you ask for more, such as $30,000, your card issuer will counteroffer $20,000.
• If you ask for less, such as $15,000, your card issuer will simply accept that amount.

As you can see, by going too low, you could miss out. When you aim high, you might not get the full amount you asked for, but you'll probably get the maximum your card issuer is willing to give you.

What happened when I asked for a $100,000 credit limit

I've had a Capital One credit card with a $30,000 credit limit for over a year. Since I've always paid the bill on time and I've increased my income, I decided to log into my account and request a higher credit limit.

There were a few questions, including my annual income and my maximum desired credit line. At first, I thought about asking for another $10,000 or $20,000. But then, I figured, why not just go for an even $100,000? I don't need that much, by any means, but I decided to make the most of my request. And I won't lie, I thought it'd be cool to have that much credit on a single card.

Unfortunately, Capital One didn't exactly meet me in the middle. It offered me a whopping $1,000 increase. I asked for $100,000 and got $31,000 -- not exactly a huge success.

Don't let my story discourage you, though. That just means my credit limit is already near the max that Capital One is willing to offer me. It did start me out with a generous limit, to be fair, as I had a high credit score when I originally applied for the card.

There's no guarantee that your card issuer will approve a credit limit increase request. But it's more likely if any of the following are true:

• Your credit score has increased.
• Your income has increased.
• You've used the card regularly and paid on time for six to 12 months.

It's good to have more credit than you need. You'll have more spending power if you're ever in a pinch, and it keeps your credit utilization low. Ask for the occasional credit limit increase to ensure you always have enough.