Can I Increase My Secured Credit Card Limit?

Can I Increase My Secured Credit Card Limit?
What is a secured credit card?

For those in the room that need a recap, let’s look at what a secured credit card is. A secured credit card requires you to place a deposit when you take the card out. These cards are fantastic lifelines for those with poor credit that cannot take an unsecured credit card out. 

Can I Increase My Secured Credit Card Limit

They usually have no credit checks and will report your account activity to the credit bureaus. Providing that you pay the card regularly and on time, your credit score will boost, allowing you to access other credit cards, loans, and mortgages over time. 

The card works by you placing down a deposit which will determine the amount of credit you will be given. Sometimes, lenders will offer you more, but this varies depending on the credit card company. You can then use the credit card, as usual, making sure you pay it off on time. 

If possible, pay the full amount to avoid incurring interest charges which you will also have to pay off. You need to be careful with secured credit cards, as the lower limit can easily go over. Keep an eye on the money you are spending to avoid landing yourself in hot water. 

Now that we have covered what a secured credit card is, let’s find out if you can increase the limit on your secured credit card.

Can I increase my secured credit card limit?

Let’s get straight into it: whether you can increase your credit card limit or not will depend on your credit card’s company. Some companies, like Capital One, allow you to increase the limit on your card after six months without increasing your deposit. 

Other card providers like Merrick Bank will only allow you to raise your credit amount if you raise your deposit. You can increase your deposit and have a limit of up to $3,000. 

Not all cards will allow it, though. Cards from First Progress do not allow an easy route to increase your credit card limit.

There might be some leeway, though, and it’s worth contacting them directly if you want to increase your credit limit. Sometimes depending on your credit score, they will allow you to increase your limit, but you might need to increase your deposit to do so. 

Increasing your deposit will provide your lender with peace of mind that you can pay the money and ensure that should anything go wrong, they can recoup their money if anything goes wrong. 

If your credit card provider does not allow you to increase your limit, there are other avenues that you can explore. Let’s take a look at these now.

What can I do if I can’t increase my secured credit card limit?

If you want to increase your credit card limit, but your provider does not allow you to increase it, you can explore other options. Let’s look at some of them now to help you decide what’s best for you.

Try an unsecured credit card.

After using a secured credit card for a while and paying off in full and on time, your credit score will have increased. You might now be able to apply and be approved for an unsecured credit card.

You won’t need to put a deposit down and will likely borrow a higher amount in these cases. 

You will still need to take care and not spend beyond your means. Instead, spend what you know you can repay and pay your bill on time every month when it arrives.

It’s best to look for credit cards that offer 0% interest or low-interest rates as an introductory offer too. You can make the most of these, make larger purchases, and pay them off without incurring interest charges. 

Once the low or no interest period cools off, remember to pay your bill in full, or you will incur interest charges. Depending on the card, these charges can be quite hefty and mount up after a few months.

Unsecured credit cards tend to offer larger limits which can be ideal, but you should only consider them if you can pay them off. 

Apply for another secured credit card

You could also look at applying for another secured credit card. You will need another deposit to secure the credit card, but it can be a viable option if you have a lower credit rating. 

You can apply for a secured credit card from another company or your existing credit card provider if you wish. Comparison sites are a fantastic place to find your new secured credit card.

You often don’t need a credit check to apply for your secured credit card, just the deposit, and you will need to provide some personal information. 

When applying for another credit card, you need to ensure that you can afford the second card. You will still not want to spend beyond your means and should only put what you can afford to pay off on your card. 

Be sure to pay the amount off in full on time to avoid incurring any interest charges. Interest charges can mount up and leave you with more to pay off than you can afford. Try to set yourself limits on how much you will spend on your credit cards to avoid overspending. 

You will also not want to spend more than the amount on your secured credit card, as you can incur extra fees and charges. Keep an eye on your spending to ensure none of this happens to you.

Final word

And just like that, we have come to the end of our secured credit card journey today! As you can see, you can increase your secured credit card limit if your provider allows you to do so.

There are a few ways this can be done, so be sure to speak to your provider to understand how you can do this. 

Remember to not raise the limit to more than you can afford and pay all bills on time to avoid any charges. Remember, if you are concerned or worried about credit cards or any debt to seek financial help for more tailored advice.

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