A higher credit limit can improve your credit score (by lowering utilisation), give you more purchasing power, and act as an emergency buffer. Here’s exactly how to request a credit limit increase in Canada.
Two Ways to Get a Limit Increase
1. Proactive request (you ask): Call the issuer or use the online banking portal to request an increase. This usually triggers a hard inquiry — a small temporary score impact.
2. Automatic increase (issuer grants): Many issuers automatically increase limits for accounts in good standing after 6–12 months of responsible use. This is typically a soft inquiry — no score impact.
When to Request a Credit Limit Increase
Good timing:
- You’ve held the account for at least 6–12 months
- You’ve made all payments on time
- Your income has increased since you opened the card
- Your current utilisation is above 30% and you want to lower it
- You’re not planning a mortgage or major loan application in the next 3–6 months
Bad timing:
- You’ve recently missed a payment
- You’ve applied for several new credit accounts recently
- You’re about to apply for a mortgage (hard inquiry + new credit can lower your score)
- Your income has decreased
How to Request: Step by Step
Online: Most major Canadian banks allow limit increase requests through online banking or their mobile app. Log in → credit card settings → request credit limit increase.
By phone: Call the number on the back of your card. Say:
“I’d like to request a credit limit increase on my [card name]. I’ve been a customer for [X] years with on-time payments, and my income has increased to approximately $[amount].”
Key information to have ready:
- Your current annual income (employment income, not household)
- Your monthly housing cost (rent or mortgage payment)
- Length of time at current employer
Will It Hurt Your Credit Score?
Most issuers conduct a hard inquiry for a requested limit increase — this can lower your score by 5–10 points temporarily. The score recovers within 3–12 months.
Automatic increases by the issuer typically use a soft inquiry — no score impact at all.
Net effect of an increase: If approved, your utilisation ratio improves, which often raises your score more than the hard inquiry lowered it. A $500 balance on a $2,000 limit (25% utilisation) becomes $500 on a $4,000 limit (12.5% utilisation) — a meaningful improvement.
How Much Should You Request?
Request 25%–50% above your current limit. Requesting too large an increase raises red flags; requesting too small misses the opportunity.
Example: Current limit $5,000 → Request $6,500–$7,500.
Issuers may approve the full amount, a partial increase, or nothing. If partially approved, you can typically request again after 6 months.
What Lenders Look At
| Factor | Weight | Notes |
|---|---|---|
| Payment history | High | Any missed payments? |
| Current income | High | Higher income → higher limit |
| Existing debt | Medium | Total debt vs income ratio |
| Account age | Medium | Longer = more trust |
| Credit score | Medium | Most issuers check |
| Spending pattern | Medium | Do you consistently use the card? |
A cardholder who spends $1,500/month, pays in full every month, and has been a customer for 2 years is a strong candidate for a limit increase.
Major Canadian Issuer Policies
| Issuer | How to Request | Hard Inquiry? |
|---|---|---|
| TD | Online banking or phone | Usually yes |
| RBC | Online banking (RBC Online) or phone | Usually yes |
| Scotiabank | Scotia Online or phone | Usually yes |
| CIBC | CIBC Online or phone | Usually yes |
| BMO | BMO Online or phone | Usually yes |
| Amex | Online account management or phone | Sometimes soft pull |
| Capital One | Online account or phone | Soft pull (verify) |
Credit Limit and Credit Score
Utilisation is 30% of your credit score. Keeping your balance below 30% of your total limit is a critical factor. If you regularly spend close to your limit, a higher limit immediately improves utilisation without changing your spending behaviour.
Optimal utilisation: Below 10% is ideal; 10–30% is good; above 30% begins to negatively impact your score.
Related Articles
- How Credit Scores Work in Canada
- How to Improve Your Credit Score in Canada
- How Hard Inquiries Affect Your Credit Score
- Credit Card Basics — Canada Guide
- What Is a Credit Limit?
Credit limit increase policies and inquiry types vary by issuer. Always verify the current policy before requesting. See our Advertiser Disclosure.