Why should I update my income on my credit card account?

Highlights:

• Updating your income on your credit card account can have several benefits including helping you to potentially receive higher credit limits or promotional offers.
• Maintaining your credit card accounts with up-to-date, accurate information can be important to maintaining your financial wellness.
• If you receive a higher credit limit due to a higher income, try to resist temptations to overspend.

You’ve just received a promotion at work or landed that dream job that comes with a nice pay bump. Congratulations! A higher income generally means you could have access to more financial opportunities, but you’ll need to update your income on your credit card account. Let’s learn more about how this works below.

Benefits of updating your income on your credit card account

Your income is an important factor that is used to help determine your credit limit, the maximum amount that your lender agrees to let you borrow. Updating your income on your credit card could possibly provide you with several benefits, including:

• A higher credit limit, which can have several additional benefits including increased purchasing power.
• Potential opportunities for more/new cards and promotions.

Am I required to update my income?

Depending on your credit card issuer, you may be asked to provide updates to your income (as well as other important pieces of information, like your mailing address and phone number). If this is the case, your issuer will likely contact you to have you update your income. This is simply part of managing your account and keeping it accurate. Note that if your income hasn’t dramatically increased or decreased, you don’t necessarily need to update your income. A small change in income may not grant you more financial opportunities. Be sure to review the terms and conditions for your card(s) so you’re not surprised by any requests from your issuer.

How to update your income

You may be able to update your income through your bank’s mobile app or via online banking. You can also contact your credit card issuer directly (the phone number is generally listed on the credit card) or visit one of the branches to see if a representative may be able to help you in person.

In conclusion

Updating your account with a new income may result in several benefits. It may feel tempting to spend more as you make more or potentially receive a higher credit limit, but you’ll want to maintain healthy financial behaviors as you continue to increase your income.