For some, a credit card is a budgeting tool, for others a lifeline when cash runs short.
According to “Credit Limits: Understanding Requests, Denials and the Consumer Experience,” a PYMNTS Intelligence and Elan Credit Card collaboration, nearly 4 in 10 cardholders received a credit line increase in the past year.
The study, based on a survey of more than 2,000 U.S. cardholders conducted in August 2025, finds that consumers view credit limits as integral to their financial planning. Seventy-one percent say limits are important to their budgeting decisions, with younger and lower-income consumers most likely to rely on them. Here are the five main reasons people apply for higher credit limits, drawn from that research.
1. To Gain Financial Flexibility
The most common reason is the simplest: Consumers want more room to maneuver. Fifty-two percent of cardholders who requested a higher limit said they did so to gain financial flexibility, and 1 in 3 said this was their top reason.
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That flexibility serves multiple goals, from handling emergencies to managing everyday spending or even maintaining peace of mind. For households facing tight budgets or irregular income, an expanded limit can be the difference between confidence and constraint.
2. Because They Are Already Near Their Limit
A third of applicants said they sought an increase because they were already using a large share of their available credit. Sixteen percent called this their primary motivation. High utilization ratios can quickly affect credit scores and signal financial strain, so many consumers apply for a higher limit to restore breathing room.
3. To Improve Credit Scores
Nearly 4 in 10 cardholders who asked for an increase said they did so to improve their credit scores, with almost 1 in 4 citing it as their top reason. Because utilization rates heavily influence scoring models, consumers recognize that a larger available limit can lower those ratios and raise scores without requiring them to borrow more.
4. To Prepare for a Large Purchase
Twenty-nine percent of those requesting higher limits said they were getting ready for a big expense such as travel, appliances or home repairs, and 16% ranked this as their most important reason. For these consumers, raising the limit is not a sign of distress but a way to finance predictable, one-time spending. The study shows that credit cards remain a preferred vehicle for major purchases because of rewards, convenience and protection — all factors that make a temporary increase appealing.
5. Because Their Income Increased
Seventeen percent of cardholders who asked for higher limits said they did so after their incomes rose. For these borrowers, a limit increase is a signal to their issuer that their risk profile has improved. An updated limit can also align available credit with new lifestyle patterns, such as higher travel or household spending.
What It Means for Issuers
The report highlights how credit line decisions affect trust and loyalty. Sixty-four percent of consumers who received an increase said it improved their impression of their issuer, while more than a third of those denied said it worsened theirs. Nearly 1 in 5 stopped using the card entirely after a denial. At the same time, some denials actually improved perceptions when issuers communicated decisions clearly, proving that transparency matters as much as approval.
