Increases in credit limits allow you to access more credit without applying for a new credit card. Customers of several credit card companies can increase their credit limits, but does American Express do the same?
Yes, American Express does increase credit limits, to give you the quick answer. However, a number of factors, including your credit history, payment history, and income, will determine whether or not you get a credit limit increase. If American Express decides you are qualified for a credit limit increase, they may additionally apply their 5 24 rule to that decision.
American Express has a criterion known as the “5-24 rule” that it employs to assess if an applicant has opened too many new credit accounts in a short amount of time. You could not be qualified for a credit limit increase if you’ve opened five or more credit accounts in the last two years. This is due to the possibility of financial instability if you open too many new credit accounts.
Before approving a credit limit increase, American Express can also wish to confirm your income in addition to the 5 24 guideline. This is due to the possibility that a greater income shows you to be more solid financially and capable of handling a higher credit limit.
And finally, you might be curious about how long it takes American Express to approve an increase in credit limit. The amount of the credit limit increase and your credit history are just two of the variables that will determine the answer. While some consumers claim to have received a rapid increase in their credit limit, others may have to wait many weeks or even months.
In conclusion, American Express does raise credit limits, but eligibility is based on a number of things, including your income, credit history, and payment record. Before approving a credit limit increase, American Express may apply their 5 24 rule to establish your eligibility and may wish to confirm your income. The length of time it takes for approval will change based on a number of variables.