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Apple launched its first credit card in August 2019, and seven months later the Apple card had around 3.1 million users, according to Cornerstone Advisors. Whether you’ve applied for the card to take advantage of cash back benefits, privacy, or special financing on Apple products, you might be wondering if it’s possible to increase your credit limit.
There are several reasons you might want more credit. Here’s how you can apply for an Apple Card credit limit increase and what you need to do to get it.
How to increase an Apple card limit
When you first apply for an Apple card – or any credit card for that matter – the card issuer will calculate your debt-to-income ratio by comparing your income to the amount of debt you owe. This tells the issuer if and how much you can afford to take on more debt, and sets your credit limit accordingly.
To request an increase in the Apple Card limit, follow these steps:
- Open the Wallet app on your phone.
- Select the Apple card.
- Tap the Plus icon (a circle with three dots).
- Select the Message icon to send your request to Goldman Sachs, the card issuer.
You can also scroll to Credit Details to view your current credit limit. After you submit your application, a representative may ask you a few questions to determine your eligibility. At this point, ask if the card issuer will conduct a further, thorough investigation of your credit reports.
Goldman Sachs will then assess several factors to determine whether to approve your request.
How to Qualify for an Apple Card Credit Limit Increase
In general, the requirements for getting a higher credit limit on a credit card are similar to those for getting the account approved in the first place. The card issuer wants to make sure that you are able to repay any debt you may incur on the card. “These requirements are pretty standard among all credit card companies,” says Howard Dvorkin, president of Debt.com.
If your credit score has improved and your DTI has declined, an increase in your credit limit isn’t guaranteed, but your chances are good.
In addition to these basic credit and income requirements, Goldman Sachs also reviews your Apple Card activity. As a result, it may take at least six months after opening an account (and sometimes longer) for the issuer to collect enough information and consider increasing your limit.
Why you might want to increase your Apple Card limit
It’s important to note that if you’ve already reached your card maximum limit – or are nearing it – due to overspending, accessing more credit may not be in your best interest.
If so, take steps to settle your balance and work to pay it off. This process will not only give you the available credit you are looking for, but it will also help improve your credit score. With that in mind, here are a few reasons why you might request an increase in your Apple Card limit:
You want to reduce the use of your credit. Your credit utilization rate is the percentage of your available credit that you are using at any given time. Even if you pay your bill in full every month, you could still have a high usage rate if your limit is relatively low, which can damage your credit. Increasing your credit limit and keeping your spending at the same level will reduce your usage rate. “The higher credit limit can give you a bit more flexibility and wiggle room,” says Jason Krueger, a certified financial planner at Ameriprise Financial.
You want the extra credit just in case. It’s usually not a good idea to put large emergency expenses on a credit card – that’s what an emergency fund is for. But if you haven’t been able to save money and build an emergency fund, then a credit card is better than a payday loan. Adding available credit to your Apple Card will make it easier for you to avoid higher interest loan options. The higher limit will also allow you to make larger purchases.
Your credit situation and income have improved. If you received a relatively low credit limit when you first opened your Apple Card account, but your credit score and income have improved since then, asking Goldman Sachs to review the new information could help you. get a higher credit limit because you are less of a credit risk. The same goes if you have paid off other debts and your debt-to-income ratio has gone down.
Before asking for a credit limit increase, check your credit score and reports to see where you stand. If your credit is in great shape, now might be the time to apply. Otherwise, use the information found in your credit reports to troubleshoot issues and improve your score.
What if you are denied a credit limit increase?
Even though your credit and finances have improved since you first opened your account, there is no guarantee that you will be eligible for an Apple card credit limit increase. The card issuer can also take into account your other debts, your history with the Apple card, and even broader economic conditions.
Getting a credit limit increase during an economic downturn can be difficult. In fact, during the coronavirus pandemic, many credit card companies reduced credit limits to reduce the risk of potential default, says Dvorkin. Some issuers have even canceled cards.
In most cases, however, the refusal is likely personal and related to credit, income, or debt issues. If you haven’t done so before applying, check your credit score and reports to determine if there are any issues you can fix.
This can include disputing inaccurate information on your credit reports, paying off other debt and credit card balances, and catching up on past due payments.
It may even be a good idea to just apply for a new credit card. “In some cases, it’s actually easier to get a new card approved than it is to increase the credit limit,” says Dvorkin.
This approach can be particularly useful if your credit is not at its best. Some banks offer credit cards designed for people with average or poor credit.
Just be sure to consider both the pros and cons of opening a new credit card. While this can give you extra credit available, there is no guarantee that you will get the amount you are looking for, and just like getting a higher credit limit, opening a new card increases the risk of getting into debt.
Maintain good credit for future credit applications
You might not know by now when you’ll need your next loan, credit card, or credit limit increase. Building and maintaining a good credit rating can make it easier to get approved without having to work on your credit first.
“The biggest component of an individual’s FICO score is their payment history,” says Krueger. “So the most important thing anyone can do is keep making their payments on time. The second most influential factor is your credit usage, so keeping your card balances low is also crucial.
It’s also important to avoid applying for credit too often. Every thorough investigation of your credit report can drop your credit score, and applying for multiple loans or credit cards over a short period of time can lead lenders to view you as a risk of default.