Does Requesting a Credit Limit Increase Hurt Your Credit Score?
Credit cards are essential assets in our lives as they help us budget our money better than cash by providing credit reports. More than 191 million Americans are active credit card users, with the average credit card holder having at least 2.7 cards.
The average credit limit varies with age and location. However, creditors review other factors before setting the credit limit for each card user. A standard American has an average total credit limit of $22,751 across all their cards.
In instances where your credit limit is not enough, you can request a limit increment from your creditor. Requesting a credit limit increase does not hurt your credit score unless other factors, like credit and loan defaulting, are involved.
DoNotPay helps you request a credit limit increase from your creditors in a fast and straightforward way. Sign up on our website today to instantly utilize the Credit Limit Increase product.
How Does a Credit Limit Increase Work?
A credit limit or credit access line is the amount of money you can spend via your credit card. Every time you use a credit card, the total amount used is subtracted from your credit limit. After reaching your limit, your card will be declined at the check-out point unless you have signed up for over the limit protection.
Increasing your credit limit extends the limit and allows you to make more purchases without increasing your credit utilization. It is best to operate below the credit limit to prove that you can manage your credit account successfully.
If you can't stay below the credit limit, you can get an increment through any of the following ways:
Make a Credit Limit Increase Request to Your Creditor
Depending on your creditor, there are various ways you can submit your request for a credit limit increase. You reach your creditor through:
- Log into your online account.
- Use your card issuer's mobile app.
- Make a corporate call to your creditor.
- Email your creditor.
- Call your creditor's customer care.
To stand a better chance at getting a credit limit increase, you must establish a good relationship with your creditor by:
- Having a clear payment record.
- Discuss why you need the increment.
- Providing proof that you can pay your debts accordingly.
- Discuss any other issues that will make your creditor trust you more.
Your creditor will review your recent credit reports and determine whether you get an increment or not. If your first application is declined, you will have to wait at least six months before reapplying.
Get an Automatic Limit Increase From Your Creditor
Your creditor might decide to increase your limit even without your application. If you have demonstrated high discipline in clearing your debt on time and maintaining a clean credit report, you might be viable for an automatic credit limit increase.
No matter the circumstances under which your credit limit is increased, it is essential to maintain responsible credit card use and timely debt payment to maintain a clean credit report.
Does Requesting a Credit Limit Increase Hurt Score?
Increasing your credit access line does not hurt your credit score unless there are underlying factors; in some instances, getting the increment under the suitable condition improves your credit score.
In the short run, an application for a higher credit access point might hurt your credit score. Once you submit your application, your creditor will conduct a soft and hard evaluation to see if you are eligible for the increment.
A hard inquiry temporarily lowers your credit score, but soft inquiries do not significantly impact your score. Examples of banks that make hard inquiries before approving your credit limit increase include Bank of America and Chase Bank.
Banks that only perform soft inquiries include:
Citi can opt for a soft or hard inquiry, which they will notify you before setting out to do it; the soft or hard inquiry will not affect your score.
A hard inquiry only affects your credit score for one year, as the inquiries drop by the end of two years. An increase in your credit limit can hurt your credit score if you use the new limit to rack up debts that you don't pay in the required time.
To prevent the debts from piling, you should control your spending habits and maintain your credit utilization ratio below 30%. A reasonable credit utilization ratio and timely repayment of debts after your increase can improve your credit score significantly.
Consider These Before You Request a Credit Increase
Credit limit increases are not available to those who have recently obtained a card or have reduced their credit limit over the last few months. Before you request a credit limit increase for your Apple card, consider these factors:
|Income||You may be asked to supply information about your earnings while applying for a credit limit increase.
To guarantee that you aren't offered more credit than you can afford to repay, the credit company will most likely look at your gross income compared to your debt.
|Delinquency||They may consider the amount of outstanding debts on your credit reports when deciding whether or not to increase your credit limit.
Overdue accounts are those that are past the payment date. People with a history of late payments are often looked down upon by credit lenders.
|Hard Pull||When a credit card firm checks your credit score before choosing whether or not to approve your request, this is known as a hard inquiry.
This type of query can stay on your credit reports for up to two years. If you have a lot of hard inquiries on your credit record, they may be skeptical of your increase request. A string of hard inquiries could indicate a high-risk customer opening many new accounts due to a financial constraint and could be a bad borrower.
Request a Credit Limit Increase With the Help of DoNotPay
Before applying for a credit limit increase, there are several factors to consider to avoid hurting your credit score. DoNotPay helps you evaluate your credit report and any other requirements for a successful credit access limit increase.
Here is how to request higher credit limits using DoNotPay:
- Go to the Credit Limit Increase product on DoNotPay.
- Select which type of card you own and your credit provider.
- Tell us more about your card, such as when you first created this card, your current credit limit, what you would like your new limit to be, your card number, and whether you've missed past payments.
- Tell us more about your current income and expenses and why you would like to request a limit increase.
- Indicate whether you want to allow hard inquiries to be made into your credit history. Upload a copy of your ID and provide your e-signature
- Submit your task! DoNotPay will deliver the request letter on your behalf. You should hear back from the card provider with confirmation or a request for more information within a few weeks.
See how easy that was? DoNotPay is proud to offer credit tools for American consumers.
Why Use DoNotPay to Request a Credit Limit Increase?
The app is always fast, easy and reliable. DoNotPay provides you with the fastest platform where you can conveniently apply for a credit limit increase without hurting your credit score from any creditor, including:
Other services we provide our users with include:
- Close unused bank accounts
- Change your mailing address
- Access college fee waivers
- Contact government representatives
Join DoNotPay today to raise your credit limit in no time!