This article is part of a larger series on Best Small Business Credit Cards.
You can request a credit limit increase with TD Bank online, through its app, or by calling customer support. Alternatively, you can apply for a new credit card to increase your total available credit. It’s crucial to have a personal credit score above 680, a low credit utilization ratio, and a timely payment history.
Sometimes, the easiest way to get more credit is to apply for a new card. Just as with asking for a higher credit limit, applying for a new credit card could impact your credit score. You can shop and compare credit cards through our Credit Card Marketplace.
4 Ways to Request Credit Limit Increases With TD Bank
Your TD Bank account must be open for at least six billing statements for TD Bank to consider a credit limit increase request. If your account has been open for six billing statements, you can request a credit limit increase with TD Bank online, through its mobile device app, or over the phone with customer support.
1. Request a Credit Limit Increase With TD Bank Online
Requesting a credit limit increase with TD Bank online is as simple as logging into your online banking account. TD Bank requires you to complete an application that takes three to four minutes, which includes your personal information, income, and monthly housing payment. If you own a business, you’ll need to provide your business and personal information, income, and monthly credit card expenses.
To request a credit limit increase with TD Bank online:
- Log in to EasyWeb
- Access your credit card account activity page
- Click on the right-hand navigation
- Click on “Apply for credit limit increase” link
- Follow the steps outlined to complete the application
After you submit your request, the bank will review it within two business days. If TD approves your request, your new credit limit will show on your TD Bank online account in another two business days. However, if TD Bank denies your request, it will send written confirmation by mail within seven to 10 business days of the original receipt of the credit limit increase request.
2. Request a Credit Limit Increase With TD Bank Through Its App
To request a credit limit increase with TD Bank through its mobile device app, start by logging into your account. TD Bank requires you to complete a short application where you’ll provide your basic personal and income information. The application process typically takes less than five minutes.
To request a credit limit increase with TD Bank through its app:
- Log into TD app
- Select the credit card you want to increase
- Tap the “More” button near the top of the page
- Select “Request a Credit Limit Increase”
- You’ll leave the TD app and be taken to your mobile device’s web browser
- Follow the steps outlined to complete the application
If TD Bank approves your credit limit increase, or if you’re approved for a lower amount than you requested, your new limit will show on your online banking profile within two business days. If you’re not approved, TD Bank will mail you a denial letter within seven to 10 business days from your request date.
3. Request a Credit Limit Increase With TD Bank By Phone
Alternatively, you can also request a credit limit increase with TD Bank through its customer support phone number at 888-561-8861. Customer service representatives are available 24 hours a day. Although TD Bank doesn’t confirm its process for requesting an increase over the phone, it’s likely the bank will require your basic personal and income information. Business owners will need to provide their business and personal information, income, and monthly credit card expenses.
4. Apply 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 credit card gives you the opportunity to choose from other providers that may 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.
Apply for a High Credit Limit Business Credit Card
If you’re a small business owner, you can also apply for a high limit business credit card. Typically, high limit business credit cards are an excellent option for businesses with monthly expenses up to $100,000. To qualify, most high limit business 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.
Tips for Qualifying for a Credit Limit Increase With TD Bank
When you’re preparing to request a credit limit increase, there are a few general tips to increase your credit limit with TD Bank. It’s always important to follow responsible credit card practices, reduce your credit utilization ratio, maintain a low debt-to-income (DTI) ratio, and check your credit score frequently.
Follow Responsible Credit Card Practices
TD Bank 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, TD Bank will most likely reject your increase request.
Some of the most common responsible credit card practices include making payments in a timely manner, avoiding carrying a balance, and maintaining a low credit utilization ratio. In addition, a flurry of recent credit card applications may also prevent a request for a limit increase from being approved.
Reduce Your 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:
- Make timely payments
- Leaving credit card accounts open so that you don’t lose total available credit
- Pay your credit card bill more than once per month
- Set customizable balance alerts
If TD Bank approves your credit limit increase, your credit utilization will naturally go down because you’ll have more total available credit unless your charging volume increases. Regardless, it’s always a good idea to keep your credit utilization low because it makes up for 30% of your personal credit score.
Maintain a Low Debt-to-income Ratio
Your DTI ratio measures the percentage of your monthly debt payments in relation to your monthly gross income. TD Bank and other 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.
Increasing your income will improve your DTI ratio as long as you don’t take on new debt. Additionally, consolidating your credit card balances to a balance transfer credit card can help you get better terms and interest-free financing periods. Overall, maintaining a low DTI ratio is crucial when requesting a credit limit increase from TD Bank.
Check Your Credit Score Every Three Months
One of the best ways consumers and business owners can receive a credit limit increase from TD Bank 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. Your personal and business credit scores fluctuate often based on your recent payment history, debt-to-income, and your credit utilization ratio.
How to Check Personal and Business Credit Scores
Consumers can check personal credit scores for free through several different credit issuers without having a negative impact on their score. If you own a small business, it’s important to check both your personal and business credit scores. These two scores are sometimes intertwined, specifically with the FICO LiquidCredit score.
When you check your personal credit score, you’ll be required to provide your name, address, date of birth, and Social Security number. If you’re checking your business credit score, you also will need to provide the name of your business, address, and employee identification number (EIN) in addition to your personal information.
When You Should Request a Credit Limit Increase With TD Bank
Increasing your credit limit can lower your credit utilization and improve your credit scores. Request a credit limit increase only when you’re bringing in more money, your monthly housing payment decreases, or when your credit scores increase. Additionally, TD Bank and most providers require your account to be open for at least six months before requesting a credit limit increase.
You should request a credit limit increase with TD Bank when:
- 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 will consider a credit limit increase request. Some providers may even automatically increase your credit limit after six months based on your credit history.
- You are 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 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 crucial 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.
When Business Owners Should Request s Credit Limit Increase With TD Bank
It’s important for business owners to evaluate their current business situation before requesting a credit limit increase. Growing businesses likely have a need for higher credit limits. Business owners should request higher credit limits when their revenue increases, its time in business increases, its credit scores increase, and its inventory grows.
A business should request a credit limit increase with TD Bank when its:
- Revenue increases
- Time in business increases
- Credit scores increase
- Inventory grows
Increasing credit limits can be extremely beneficial to both consumers and business owners, as it will give them more buying power. However, keep in mind that spending on the cards results in a larger bill.
What to Do If You’re Denied a Credit Limit Increase From TD Bank
If you’re denied a credit limit increase from TD Bank, you can resolve any issues addressed in the denial letter, pay down existing debt, review your credit report for any errors, or apply for a new credit card.
Some actions you can take if you’re denied a credit limit increase from TD Bank are:
- 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 down existing debt: Most credit card providers will evaluate your debt-to-income 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.
- Apply for a new credit card: Sometimes the easiest way to increase your available credit is by applying for a new credit card through your current provider or a new provider. If you’re looking for a new card, you can compare the best credit cards in our Credit Card Marketplace.
If you decide to apply for a new credit card, make sure to keep your applications to a minimum. Several applications in a short period of time can cause a handful of hard credit checks. Hard credit checks can lower your personal credit score by one to five points. Plus, credit issuers don’t like to see multiple hard inquiries on a credit report.
How Credit Scores Are Impacted If You Increase Credit Limits With TD Bank
Increasing your credit limit with TD Bank can help improve your credit score because it will lower your credit utilization ratio. If you submit a larger request, TD Bank may run a hard credit check, which could ding your credit score up to five points. However, hard credit checks won’t have an impact on business credit scores.
Personal Credit Scores
One of the main factors that decide your personal credit score is your credit utilization ratio. Increasing your credit limit also will reduce your overall credit utilization ratio. This means that, over time, you will see a positive impact on your personal credit score.
If TD Bank runs a hard credit check, your personal credit score can decrease one to five points. Hard credit checks only impact your credit score for one year, but they will stay on your credit report for two years.
Business Credit Score
Your business credit scores may see a similar impact from a credit limit increase when compared to personal credit scores. As with personal credit scores, one of the key factors for calculating your business credit score is your credit utilization ratio. If you increase your credit limit on your business credit card, your credit utilization ratio and business credit scores should improve.
However, unlike with your personal credit score, hard credit checks don’t have an impact on business credit scores. As long as someone has your business’s name and address, they can pull your business credit report. This means that inquiries on your business credit report won’t hurt your credit score because it’s easier for someone to check your business’s credit.
Frequently Asked Questions (FAQs) About Credit Limit Increases With TD Bank
We covered a lot of information on credit limit increases with TD Bank. Some questions are asked more often than others, and we address those here.
How often can I apply 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.
How do I increase my credit card limit?
Choose one card on which you want the bank to increase the limit. When you request an increase, your provider will run your credit to make sure you can manage more debt. Some indicators that you’re creditworthy include a low credit utilization ratio, timely payment history, and a strong personal credit score.
Can you increase credit card limit online?
Most credit card providers allow users to request a credit card limit increase online through their banking account. Typically, you’ll be required to provide your basic personal information, updated income, and monthly housing payment. Business owners may also need to provide their business information and monthly credit card expenses.
You can increase your credit card limit with TD Bank online, through its 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. If you’d rather apply for a new credit card with a higher limit, that is an option, too.
The easiest way to receive additional credit is to apply for a new card. Similar to a credit limit increase, 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.