I think i used option 1 and 2. I was a little uncomfortable about it at first because they pulled up my credit history to verify it was me by asking specific questions that's on it; however, I haven't encountered any problems since the upgrade. I onlyneeded an upgrade so I could except CC with a premier account when I do sell items. It's not too difficult but I understand your anxiety.
It would definitely be an advantage to you if you had the limit lifted so you would not have to wait until next month to continue your sales.