This article is part of a larger series on Best Small Business Credit Cards.
There are three ways for you to increase your credit limit with TD Bank: via its website, its mobile application, and a phone call. Other than making sure that you have a credit score of over 680, you should also have a low credit utilization ratio and a timely payment history.
TD Bank requires your account to be active for at least six billing statements to apply for a credit limit increase request. If you meet the minimum requirements, you can request for a credit limit increase. It should be noted that it will take two business days following TD Bank’s receipt of your request to approve your request, approve a lower amount than requested, or deny your request completely.
Oftentimes, the easiest way to get more credit is to apply for a new credit card. Similar to asking for a higher credit limit, applying for a new card can affect your credit score. If you think getting a new card is best for you, you can either check our evaluation of the best small business credit cards or visit our Credit Card Marketplace to find options.
1. Via EasyWeb Online Banking
TD Bank now makes requesting for credit limit increase easier as you can do it in your EasyWeb Online Banking account. Log in, select the TD Credit Card for which you wish to make a credit limit increase request, follow the prompts, and provide the requested information to complete your request.
2. Through the TD Bank App
Once you have installed the TD App, log in using your EasyWeb Login ID and password. Choose the TD Credit Card you wish to increase (for example, the TD Business Solutions Credit Card), and click “Request a Credit Limit Increase.” Follow the instructions and prompts and provide the requested information to complete your request.
3. By Calling TD Bank Customer Service
Call (800) 983-2582 to request for an increase in your credit limit. It should be noted that this is available to cardholders seven days a week, 7 a.m. to midnight Eastern time.
When To Request a Credit Limit Increase with TD Bank
Increasing your credit limit can lower credit utilization and improve credit scores.
- You’ve had your account for at least six months: TD Bank and most other providers require you to have your account for six months before they’ll consider a credit limit increase request. Some providers may even increase your credit limit automatically after six months based on your credit history.
- You’re bringing in more money: The best time to request a credit limit increase is when you’re making more money. An increase in income means you’ll be able to manage more debt. Typically, you’ll need to provide proof of your new income during the application process.
- Your monthly housing payment decreases: A decrease in your monthly housing payment generally decreases your debt-to-income (DTI) ratio. Typically, a lower DTI indicates you’re able to handle more potential debt, such as a credit limit increase.
- Your credit score increases: One of the easiest times to get approved for a higher credit limit is when your credit score increases. An increase in your credit score shows you manage your debt responsibly.
It’s important to request a credit limit increase when you can afford taking on more debt and when you have good credit. In addition to these guidelines, business owners also should consider their specific business situation before requesting a credit limit increase with TD Bank.
What To Do If You’re Denied a Credit Limit Increase from TD Bank
In the event that your request isn’t approved, a written confirmation will be sent by mail within seven to 10 business days from the date of your request:
- Understand why your request wasn’t approved: Typically, credit card issuers will send or email you a letter explaining the reason for a denial. It’s important to review those issues and fix them accordingly.
- Pay existing debt: Most credit card providers will evaluate your DTI ratio because it indicates your ability to pay down your debt. If you’ve been denied, pay down your existing debt to reduce your debt-to-income ratio.
- Order your credit report and review it for errors: After receiving a credit limit increase denial, order your credit report and review it for any errors. You can dispute errors that you find on your report.
Increase Your Credit Limit by Applying for a New Credit Card
Sometimes, the easiest way to receive additional credit is to get a new credit card not necessarily through your current provider. Applying for a new one gives you the opportunity to choose from other issuers that offer cards better suited to your spending. However, if TD Bank approves your application for another of its cards, you have the flexibility to expand your banking relationship.
If you’re a small business owner, you can also apply for a high limit business credit card. Typically, it’s an excellent option for businesses with monthly expenses up to $100,000. To qualify, most high limit cards require that you have a personal credit score of at least 670. If your score is less than 670, a good alternative would be a fair credit business credit card.
Ways To Improve Your Chances of Getting Approved for a Credit Limit Increase
Most providers require you have your credit card account open for six months before requesting a credit limit increase. After your bank increases your credit limit, you’ll typically need to wait another four months before you can apply for another increase. If your bank reduces your limit, you must wait six months to request an increase.
- Follow responsible credit card practices: Credit card providers will more likely approve a credit limit increase if you manage your credit cards responsibly. The issuer will review your account when you request a credit limit increase and evaluate how you’ve used your credit cards. If you pay your credit card bills late frequently, your provider will most likely reject your increase request.
- Reduce credit utilization ratio: Your credit utilization ratio is an indicator of your overall credit usage or credit usage per individual credit card. To calculate your credit utilization ratio, divide your total credit card balance by your total available credit. As a general rule of thumb, a credit utilization ratio of less than 30% and greater than 0% is considered good. Ratios greater than 30% can either illustrate you’re overspending or not making large enough payments.
Some of the best ways to maintain a low credit utilization ratio are: Making timely payments, leaving credit card accounts open to not lose the total available credit, paying credit card bills more than once a month, and setting customizable balance alerts.
- Maintain a low DTI ratio: Your DTI ratio measures the percentage of your monthly debt payments in relation to your monthly gross income. Providers use this calculation to make sure you can afford to pay off your credit card balance. As a rule of thumb, it’s a good idea to keep your DTI ratio below 40%. You can lower your DTI ratio by increasing your income or consolidating your credit card balances to pay them off faster.
- Check your credit score every three months: One of the best ways consumers and business owners can receive a credit limit increase is to check credit scores frequently. Personal credit scores range from 300 to 850, and FICO’s business LiquidCredit score ranges from 0 to 300. Checking your own credit score only counts as a soft credit check, which means it won’t hurt your score. You should check your credit score every quarter as your personal and business credit scores fluctuate often based on your recent payment history, DTI, and your credit utilization ratio.
You can increase your credit card limit with TD Bank in three ways: through its EasyWeb Online Banking, via the TD App, or by calling its customer support line. It’s crucial to request a credit limit increase only if you need more buying power and know you can afford a larger credit card bill. Alternatively, you can also apply for a new credit card with a higher credit limit as the easiest way to receive additional credit.
Applying for a new card could have a short-term impact on your credit score. Plus, you have the flexibility to choose the exact card you want. You can shop and compare credit cards in our Credit Card Marketplace.