Understanding credit limit changes

Your Karat Card credit limit may change over time based on periodic reviews of your account. When a change occurs, you’ll see a notification on your dashboard that explains what changed and why.

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How credit limit changes work

Karat periodically reviews your account activity, financial data, and linked bank accounts to determine whether your credit limit should be adjusted. These reviews can result in:

• Credit limit increase: your limit is raised based on positive account activity
• Credit limit decrease: your limit is lowered after a financial review

You do not need to take any action to trigger these reviews. They happen automatically as part of Karat’s ongoing account management.

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Dashboard notifications

When your credit limit changes, a notification card appears on your dashboard home page. The notification includes:

• Whether your limit increased or decreased
• Your updated credit limit amount
• The reasons for the change

If you previously requested a limit increase, you’ll also see a notification with the result of that request, including whether it was approved or denied and the reasons behind the decision.

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Acknowledging a credit limit change

Each credit limit notification includes an Acknowledge button. You must acknowledge the notification to dismiss it from your dashboard. Acknowledging a notification is also required before you can submit a new credit limit increase request. If you have an unacknowledged notification, the limit increase request form will prompt you to return to your home page and acknowledge it first.

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Reviewing your financial notice

Some credit limit notifications include a Learn more or financial review link. Selecting this link opens a PDF document with additional details about the factors that contributed to the decision. This document is specific to your account and is available directly from the notification card on your dashboard.

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Improving your chances of a higher limit

To increase the likelihood of receiving a higher credit limit in future reviews:

• Use your Karat Card consistently for business purchases
• Make all payments on time and in full each month
• Keep your bank accounts connected and up to date through Settings > Connections
• Link additional bank accounts if your revenue flows through multiple institutions

_{Karat is a fintech company, not an FDIC-insured bank. Banking and Card services provided by Grasshopper Bank, N.A., First Internet Bank of Indiana, and Cross River Bank, Members FDIC.}