How To Increase Your Credit Limit With TD Bank
This article is part of a larger series on Best Small Business Credit Cards.
In case you didn’t get a voluntary credit limit increase with TD Bank, you can request an increase by calling customer service or going through its online banking site or mobile app. You can also improve your chances of getting an increase by ensuring your account is active for at least six months, increasing your revenue, paying in full and on time, reducing the credit utilization ratio, decreasing other debts, and improving your credit scores.
Often, 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, see our roundup of the best small business credit cards.
1. Customer Service
Call (888) 561-8861 to request an increase in your credit limit. Ensure to follow the prompts and provide the needed information to complete your request.
2. Online Banking
Log in to your Online Banking account, select the TD Credit Card for which you wish to make a credit limit increase request, follow the prompts, and then provide the requested information.
3. Mobile App
Once you have installed the iOS or Android TD Bank App, log in using your TD Online Banking credentials. Choose the credit card you wish to increase and click “Request a Credit Limit Increase.” Follow the instructions and prompts and complete the requested information fields.
How To Improve Your Chances of Getting a Credit Limit Increase with TD Bank
You can help convince TD Bank to provide a credit limit increase. They can also improve your chances of getting a higher credit limit without asking.
- Keep your account open/active 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 increase your credit limit automatically after six months based on your credit history.
- Increase your revenue/income: 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. In this case, it’s best for you to proactively update your income on TD Bank’s website or mobile app.
- Pay in full and on time each month: Paying the credit card’s bill in full and on time will help improve your chances of getting an increase on the card’s limit. The issuer will review your account when you request a credit limit increase and evaluate your use of your cards. If you frequently pay your card’s bills late, your provider will most likely reject your 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 between 0% and 30% is considered good. Ratios over 30% can illustrate overspending or that you don’t make large enough payments.
- Improve your credit scores: 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. One of the best ways consumers and business owners can receive a credit limit increase is to check their credit scores every three months. 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.
- Decrease your other debts: Decreasing your monthly housing payment generally decreases your debt-to-income (DTI) ratio. Typically, a lower DTI indicates you can handle more potential debt, such as a credit limit increase.
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 ten 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 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 debt to reduce your DTI 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 its other cards, you have the flexibility to expand your banking relationship.
If you’re a small business owner, you can apply for any of the best high-limit business credit cards. 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 any of the leading fair credit business credit cards or top secured business credit cards.
You can increase your credit card limit with TD Bank in three ways: calling its customer support line, heading over to its online banking site, or going through its mobile app. 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 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.