Credit limit increase fee

Be aware if the card issuer charges for credit limit increase fee. Card issuers that charge these fees are usually for cards in the sub-prime market.

Some creditors charge $25 for each increase, and some charge as much as 50% of the increase amount! Some issuers only charge this fee if you request the increase, and some will charge it even if they increase your limit without you asking for it.

Find out the card issuer's policy before you request a limit increase; it can be found in the card's terms and conditions. If you have a better card available to you, you may find you're better off without a card that charges limit increase fees.


 

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