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Apple launched its first credit card in August 2019, and as of early 2022 the Apple Card had an estimated 6.7 million users, according to Cornerstone Advisors. Whether you applied for the card to enjoy the cash back benefits, the privacy or the special financing on Apple products, you might be wondering if it’s possible to get an increase to your credit limit.
There are several reasons why you might want more credit. Here’s how you can request an Apple Card credit limit increase and what you need to do to qualify.
How to Increase an Apple Card Limit
When you first apply for an Apple Card — or any other credit card, for that matter — the card’s issuer will calculate your debt-to-income ratio by comparing your income with the amount of debt you owe. This tells the issuer whether you can afford to take on more debt and how much, and it sets your credit limit accordingly.
To request an Apple Card limit increase, follow these steps:
1. Open the Wallet app on your phone.
2. Select the Apple Card.
3. Tap the “More” icon (a circle with three dots).
4. Select the Message icon to send your request to Goldman Sachs, the card’s issuer.
Once you’ve submitted your request, a representative may ask you a few questions to determine your eligibility. At this point, ask whether the card issuer will run a new hard inquiry on your credit reports. Goldman Sachs will then evaluate several factors to determine whether to approve your request.
How to Determine Your Current Credit Limit
Once you have the Apple Card selected in the Wallet app, tap the “More” icon and scroll down to “Credit Details.” There, you’ll be able to see your account’s credit limit, your available credit and your card’s annual percentage rate.
[Read: Best Cash Back Credit Cards.]
How to Qualify for an Apple Card Credit Limit Increase
In general, the requirements to obtain a higher credit limit on a credit card are similar to what they are to get approved for the account in the first place. The card issuer wants to make sure that you’re able to repay any debt you might incur on the card. “These requirements are fairly standard among all credit card companies,” says Howard Dvorkin, chairman of Debt.com.
If your credit score has improved and your DTI has decreased, a credit limit increase isn’t guaranteed, but your odds are good.
In addition to these basic credit and income requirements, Goldman Sachs also reviews your Apple Card activity. As a result, it can take at least six months after you open an account (and sometimes longer) for the issuer to gather enough information and consider raising your limit.
[READ: Does the Apple Card Build Credit?]
Why You Might Want to Increase Your Apple Card Limit
It’s important to note that if you’ve already maxed out your card’s limit — or you’re close to it — due to overspending, getting access to more credit may not be in your best interest.
If this is the case, take steps to address your balance and work to pay it down. This process will not only give you the available credit you’re looking for, but it will also help improve your credit score. With that in mind, here are some reasons why you might request an increase to your Apple Card limit:
— You want to lower your credit utilization. Your credit utilization ratio is the percentage of your available credit that you’re using at a given time. Even if you’re paying your bill in full every month, you could still have a high utilization rate if your limit is relatively low, which can damage your credit. Increasing your credit limit and keeping your spending the same will lower your utilization rate. “The higher credit ceiling can give you a little more flexibility and breathing room,” says Jason Krueger, a private wealth advisor and certified financial planner with Ameriprise Financial.
— You want the additional credit just in case. It’s generally not a good idea to put large emergency expenses on a credit card — that’s what an emergency fund is for. But if you haven’t been able to save money and build an emergency fund, a credit card is better than resorting to a payday loan. Adding available credit to your Apple Card will make it easier to avoid higher-interest loan options. The higher limit will also make it easier for you to make larger purchases.
— Your credit situation and income have improved. If you received a relatively low credit limit when you first opened your Apple Card account, but your credit score and income have improved since then, asking Goldman Sachs to consider the new information could allow you to get a higher credit limit as you’re less of a lending risk. The same is true if you’ve paid off other debts and your debt-to-income ratio has decreased.
Before you request a credit limit increase, check your credit score and reports to see where you stand. If your credit is in excellent shape, now may be the time to apply. If not, use the information found in your credit reports to address issues and improve your score.
[Read: Best Personal Loans.]
What if You’re Denied a Credit Limit Increase?
Even if your credit and finances have improved since you first opened your account, there’s no guarantee that you’ll qualify for an Apple Card credit limit increase. The card issuer may also consider your other debts, your history with the Apple Card and even broader economic conditions.
Getting a credit limit increase during an economic downturn can be difficult. In fact, at the beginning of the coronavirus pandemic, many credit card companies slashed credit limits to lower the risk of potential defaults, says Dvorkin. Some issuers even canceled cards.
In most cases, however, the denial is likely personal and relates to issues with your credit, income or debt. If you didn’t before you applied, check your credit score and reports to determine if there are issues you can address.
This can include disputing inaccurate information on your credit reports, paying down other debts and credit card balances, and getting caught up on past-due payments.
It may even make sense to simply apply for a new credit card. “In some cases, it’s actually easier to get approved for a new card than a credit limit increase,” says Dvorkin.
This approach may be particularly worth considering if your credit isn’t in the best shape. Some banks offer credit cards designed for people with fair or poor credit.
[Read: Best Credit Cards for Bad Credit.]
Just be sure to consider both the benefits and drawbacks of opening a new credit card. While it can give you additional available credit, there’s no guarantee you’ll get the amount you’re looking for, and just like getting a higher credit limit, opening a new card increases the risk of getting into debt.
Maintain Good Credit for Future Credit Applications
You may not know now when you’ll need your next loan, credit card or credit limit increase. Building and maintaining a good credit score can make it easier to get approved without needing to work on your credit first.
“The largest component of an individual’s FICO score is their payment history,” says Krueger. “So the most important thing anyone can do is to continue to make their payments on time.” The second most influential factor is your credit utilization, so keeping your card balances low is also crucial.
It’s also important to avoid applying for credit too often. Each hard inquiry on your credit report can knock points off your credit score, and applying for multiple loans or credit cards in a short period can cause lenders to view you as a default risk.
Reviewed on May 24, 2023: This article was previously published at an earlier date.
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How to Get a Credit Limit Increase With an Apple Card originally appeared on usnews.com
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