For increasing your credit limit you need to talk with your credit card company. Sometimes, the credit card company themselves increases your credit limit without even informing you. This of course depends on your credit repayment history with the existing credit card of that company. Most of the credit card companies even takes into account your purchases, while increasing your limit. If you are a frequent purchaser with their credit cards, they increase the credit limit automatically.
yes, Carol is right but you should also take note of the fact that increased credit limit is not always good for your credit score. This is because if you spend more and cannot repay it back, it may reflect on your credit report and your credit score may get reduced. Moreover, if you already have a existing credit card debt, you should not accept the offer of increasing the credit limit. Another point is that, with higher credit limit on your credit cards, your future lender may feel unsecured of lending you money.
And just for the record, when you are the one asking for the increase, you had better make sure that your payments are have been on time for at least 6 months (sometimes longer).
That means all your payments not just your credit card payment, they will more than likely do a credit check to make sure, if you have a late payments on your credit, and if they decide to raise your limits, they will more than likely raise your intrest rate too.
Just know what all is involved before you agree, read the fine pint.
That means all your payments not just your credit card payment, they will more than likely do a credit check to make sure, if you have a late payments on your credit, and if they decide to raise your limits, they will more than likely raise your intrest rate too.
Just know what all is involved before you agree, read the fine pint.
yes---i should have mentioned that. But, to the original poster---be careful when increasing your credit lines. So much can happen in life that is unexpected and you don't want to be put i a postion where you have too much debt. Look carefully in these forums and try to learn from others mistakes when it comes to money, credit, etc.
Thats really good advice Lorri. I know when times get tough people think credit cards are the answer. Soemtimes or rather most they are only just a quick fix and later tend to make the problem even worse.
If you want to increase your credit limit, you can contact your credit card provider. But the best thing is that it is always better not to go for increased credit limit if you do not have control over your spending because as Anthony said, if you cannot pay back the debt, the debt will be reported in your credit report and your credit score will decrease. Many cc companies automatically increases your credit limit, but before accepting such an offer, think whether you actually require the increased credit limit.
I have had an increase happen several ways. One way is automatically and I don't know if they check and then do it or just check internally. Another way that I have gotten one is by requesting one verballyand they usually either happen instantly or they have to check (which I think means they check your CR). The other way is when I have called in and listened to the automated info and they say "for a credit increase press #1" and again it either happens instantly or you have to wait until they check and that can take a few days.
Now that I don't know---I just recently looked at my CR and noticed that the recent request for a credit card was on there, but I dont' know what it did if anything to my score.
Hi Lorri
As far as I know a hard inquiry may lower your credit score to as much as 10 points and so if it appears in your credit report your credit score would reduce. But if the hard inquiry was not authorized by you, it can be removed from the credit report. For this all you need to do is to send a certified letter to the inquirer whose name appears on your credit report asking him to verify your authorization or delete the listing. Mostly the inquirers cannot verify your authorization and remove the listing from your report.
Hi goodnatured
Your credit report may be pulled by the credit card company only if you want to increase your credit limit. This is because increasing your credit limit would mean that you are requesting for more credit and so they may check your report to find out your payment history. But sometimes it happens that you make frequent purchases on your credit card and also repay them on time. In that case the company sometimes automatically increases your credit score without pulling your credit report. But as Anthony said if they pull your credit report without getting authorization from you, the hard inquiry can be removed from your report.
So say I had my credit line increased without asking my credit card place to increase it (happens alot to me). Does that mean I take a hit for it? If I am not asking for the increase and never come near the credit l;imit anyway why do they bother increasing someones credit limit? Guess I always wondered that.
Another thing I hate is how discover is ALWAYS sending us checks in the mail. We can fill out the date and how much we want (as long as it isn't over our credit limit). I have asked the not to do this but they say It is a courtsey and we still get them. I really do not see the purpose when you can go to any ATM abd get the money out anyway.
Its just their way of trying to get you to spend EVEN more money and rack up more interest---all under the disguise of we love our customers so very much, blah, blah.
No I wasn't talking about the check. I should have explained myself a little better. Recently they upped my credit limit on one of my cards. When they do this do they check your credit report and does it lower your score?
Now that I do not know---it doesn't seem like they should (but probably WOULD). This is kinda what I was referring to above---how sometimes they just check your history internally. Years ago, I worked for Sears in their credit department and if someone just randomly came in a store or was buying something an dthey needed a higher limit they would call our office. I can remember that occasionally they would run a credit report, but they usually just looked at their Sears history. However, this was 30 years ago and it's most likely done differently.
Hi Fireyone
Whenever you ask your credit card company for increasing your credit limit, they may or may not pull out your credit report. Sometimes they increase your limit based on your spending on the card and your repayment of debt without pulling out your credit report. But if they pull out your credit report, they do not normally take authorization from you and so even if it appears in your credit report as hard inquiry, it can be easily removed.
Yes, Anthony is right. But it may also happen as you said Fireyone, that the credit card company may by themselves increase your credit limit. In that case too, they do not basically look at your credit report. They increase your credit score based on your payment history on your existing card. But if they access your credit score without your authorization, you can get that hard inquiry easily removed from your credit report.
This is good to know. I just don't think it would be fair if they just upped and checked whenever they wanted since you have an account with them. Thanks for the info everyone.
This is what I was thinking. I always heard if you have a credit card with a high amount, even though you didn't use it it counted when you took out a loan. Say nI have a visa with limits of $3000 but only have $300 on it does the bank look at the $300 or the actual amoun t that can be used?
Hi Fireyone
If you have $3000 credit limit in your card and you have only $300 credit limit left on your account, the creditors will consider $300 while offering you credit. Moreover, $300 is only 10% of your credit limit which affects your credit score adversely, With only 10% of your available credit limit the creditors might find it risky to offer you further loans. So you should always use not more than 30% of your credit limit.
No I meant it the other way. That I would have only used $300 of the $3000. Therefore I would have $2700 left to the good on the card. It was just a figure to showq an example. I don't know why I thought that they would conseder the whole line of credit. Just heard it somewhere.
Makes more sense the way you explain it cause how can it count against you if you didn't use it.
lenders can get nervous if you have to much credit availible to you. They may not want to extend you a loan if you have a large amount of credit availible via ccs b/c if you then use that availib;e credit you might default on your loan. Basically, this will depend on your income. If you could afford to pay on your loan and all of your possible debt it wont effect you.
Hi fireyone
You should not spend more than 30% of your credit limit. This is because amounts owed contributes about 30% in your credit score and so use of credit over 30% of the credit limit will lower your credit score. Now if you use only 10% it will not affect you credit score in any way if you pay it back on time.
Okay now I am undrstanding a little better. I am not looking for credit I was just trying to figure out how this works. I mean if someone has all these open lines of credit and then goes to the bank for a loan I thought somehow that would count against them even if they didn't use all the money on the cc accounts. I know that banks have these debt to income ratios.
Indeed, some morgage lenders demand CL decrease before approving.
Some CCC may deny application claiming that an applicant has sufficient credit to his/her income.
That would make sense if they are going to lend you money that they would have taken some precautions, usually they are lending a great amount of money.
Hard these days to get increases, I know people that have had good credit who are now having limits raised but lowered for no reason at all, or their intrest rates are being raised for no reason.
There are new laws being passed to protect the consumers with these crazy credit card companies.
This is very true. Recently we paid off alot of credit card debt. We never put any new balances on the cards and did not close them. Every year upon renewal we usually got an increase, especially with discover card. This hear there was no increases in any of the accounts..not that I minded. I thought it could have been the big limit they already had in place or the economy. My guess would be the economy.
What really irks me is all the opt out letters these companies are sending when the taxpayers bailed them out and now they are going to charge even the ones with good credit quite a lot more interest.
It is very unfair, and you would think that they would want to keep their good customers as a good base income for their companies. Hard to say what they are thinking.
there will be new rules coming from the government soon on how they deal with customers, like they have to give so many days warning before increasing rates.
Fair enough, I remember seeing an elderly lady on TV who was shocked at her rate going so high, she actually could not afford it because she was on a fixed income.
I heard some things about the new laws coming into effect. What really has me stumped is why the government gave them a certain period of time before enforcing these new laws. This gave the credit card companies a really good advantage. Most hurriedly upped credit card interest rates and changed contracts before the new laws had a chance to pass. Some of the laws just recently changed a week or so ago...this is when we started getting opt out letters. What really amazes me is alot of these companies want you to pay your bill in full once you opt out and they close the card. Most have relied on credit cards to get them through the tough economic times and can not afford to pay them in full.
They should not be able to change the rules in the middle of the game. Do you have one that wants you to pay in full? I don't see how they can enforce something like that on an old account, rules should apply to new accounts only.
I've tried to increase my credit limit on my card ( I have a $300.00 limit). I was 'denied' for the increase. Well...I suppose that's ok. Because I would have MORE of a debt, by increased CC limits. More %..that kind of thing. Increasing your CC limits isn't always a 'benefit' to you.
For increasing your credit limit you need to talk with your credit card company. Sometimes, the credit card company themselves increases your credit limit without even informing you. This of course depends on your credit repayment history with the existing credit card of that company. Most of the credit card companies even takes into account your purchases, while increasing your limit. If you are a frequent purchaser with their credit cards, they increase the credit limit automatically.
yes, Carol is right but you should also take note of the fact that increased credit limit is not always good for your credit score. This is because if you spend more and cannot repay it back, it may reflect on your credit report and your credit score may get reduced. Moreover, if you already have a existing credit card debt, you should not accept the offer of increasing the credit limit. Another point is that, with higher credit limit on your credit cards, your future lender may feel unsecured of lending you money.
Contacting the card services is the best way. The number should be on back of your card.
And just for the record, when you are the one asking for the increase, you had better make sure that your payments are have been on time for at least 6 months (sometimes longer).
That means all your payments not just your credit card payment, they will more than likely do a credit check to make sure, if you have a late payments on your credit, and if they decide to raise your limits, they will more than likely raise your intrest rate too.
Just know what all is involved before you agree, read the fine pint.
that was me,
That means all your payments not just your credit card payment, they will more than likely do a credit check to make sure, if you have a late payments on your credit, and if they decide to raise your limits, they will more than likely raise your intrest rate too.
Just know what all is involved before you agree, read the fine pint.
yes---i should have mentioned that. But, to the original poster---be careful when increasing your credit lines. So much can happen in life that is unexpected and you don't want to be put i a postion where you have too much debt. Look carefully in these forums and try to learn from others mistakes when it comes to money, credit, etc.
Thats really good advice Lorri. I know when times get tough people think credit cards are the answer. Soemtimes or rather most they are only just a quick fix and later tend to make the problem even worse.
Most quick fixes are temporary too--they can come back and bite ya. So it always pays to take your time and research.
If you want to increase your credit limit, you can contact your credit card provider. But the best thing is that it is always better not to go for increased credit limit if you do not have control over your spending because as Anthony said, if you cannot pay back the debt, the debt will be reported in your credit report and your credit score will decrease. Many cc companies automatically increases your credit limit, but before accepting such an offer, think whether you actually require the increased credit limit.
Exactly Justin! Deciding if that increase is truly necessary can save possible heartache later.
Like I said it seems like a quick fix in the beginning but it usually later has consquences.
don't they usually do a credit check when you ask for a credit increase?
I have had an increase happen several ways. One way is automatically and I don't know if they check and then do it or just check internally. Another way that I have gotten one is by requesting one verballyand they usually either happen instantly or they have to check (which I think means they check your CR). The other way is when I have called in and listened to the automated info and they say "for a credit increase press #1" and again it either happens instantly or you have to wait until they check and that can take a few days.
when they do a credit check for credit increases, is this a hard inquiry that lowers your score?
Now that I don't know---I just recently looked at my CR and noticed that the recent request for a credit card was on there, but I dont' know what it did if anything to my score.
Hi Lorri
As far as I know a hard inquiry may lower your credit score to as much as 10 points and so if it appears in your credit report your credit score would reduce. But if the hard inquiry was not authorized by you, it can be removed from the credit report. For this all you need to do is to send a certified letter to the inquirer whose name appears on your credit report asking him to verify your authorization or delete the listing. Mostly the inquirers cannot verify your authorization and remove the listing from your report.
Hi goodnatured
Your credit report may be pulled by the credit card company only if you want to increase your credit limit. This is because increasing your credit limit would mean that you are requesting for more credit and so they may check your report to find out your payment history. But sometimes it happens that you make frequent purchases on your credit card and also repay them on time. In that case the company sometimes automatically increases your credit score without pulling your credit report. But as Anthony said if they pull your credit report without getting authorization from you, the hard inquiry can be removed from your report.
So say I had my credit line increased without asking my credit card place to increase it (happens alot to me). Does that mean I take a hit for it? If I am not asking for the increase and never come near the credit l;imit anyway why do they bother increasing someones credit limit? Guess I always wondered that.
Another thing I hate is how discover is ALWAYS sending us checks in the mail. We can fill out the date and how much we want (as long as it isn't over our credit limit). I have asked the not to do this but they say It is a courtsey and we still get them. I really do not see the purpose when you can go to any ATM abd get the money out anyway.
Its just their way of trying to get you to spend EVEN more money and rack up more interest---all under the disguise of we love our customers so very much, blah, blah.
Kinda of what I figured. I was just hoping that they don't do credit checks before they offer and it effects the score.
I don't know ----doesn't it say somewhere on the check about it being subject to approval? Maybe I'm thinking of something else.
No I wasn't talking about the check. I should have explained myself a little better. Recently they upped my credit limit on one of my cards. When they do this do they check your credit report and does it lower your score?
Now that I do not know---it doesn't seem like they should (but probably WOULD). This is kinda what I was referring to above---how sometimes they just check your history internally. Years ago, I worked for Sears in their credit department and if someone just randomly came in a store or was buying something an dthey needed a higher limit they would call our office. I can remember that occasionally they would run a credit report, but they usually just looked at their Sears history. However, this was 30 years ago and it's most likely done differently.
Hi Fireyone
Whenever you ask your credit card company for increasing your credit limit, they may or may not pull out your credit report. Sometimes they increase your limit based on your spending on the card and your repayment of debt without pulling out your credit report. But if they pull out your credit report, they do not normally take authorization from you and so even if it appears in your credit report as hard inquiry, it can be easily removed.
Yes, Anthony is right. But it may also happen as you said Fireyone, that the credit card company may by themselves increase your credit limit. In that case too, they do not basically look at your credit report. They increase your credit score based on your payment history on your existing card. But if they access your credit score without your authorization, you can get that hard inquiry easily removed from your credit report.
This is good to know. I just don't think it would be fair if they just upped and checked whenever they wanted since you have an account with them. Thanks for the info everyone.
It seems wrong somehow that they can do something, that you might not necessarily even want, that could put a mark on your credit score.
This is what I was thinking. I always heard if you have a credit card with a high amount, even though you didn't use it it counted when you took out a loan. Say nI have a visa with limits of $3000 but only have $300 on it does the bank look at the $300 or the actual amoun t that can be used?
Hi Fireyone
If you have $3000 credit limit in your card and you have only $300 credit limit left on your account, the creditors will consider $300 while offering you credit. Moreover, $300 is only 10% of your credit limit which affects your credit score adversely, With only 10% of your available credit limit the creditors might find it risky to offer you further loans. So you should always use not more than 30% of your credit limit.
No I meant it the other way. That I would have only used $300 of the $3000. Therefore I would have $2700 left to the good on the card. It was just a figure to showq an example. I don't know why I thought that they would conseder the whole line of credit. Just heard it somewhere.
Makes more sense the way you explain it cause how can it count against you if you didn't use it.
Now I'm confused...
It depends on your lender.
You can call CS
You can find backdoor number, detour CS and talk to Credit Analyst
You can hit LUV button.
Some lenders will pull hard on you (Chase), some soft (BOA, AMEX).
fireyone
lenders can get nervous if you have to much credit availible to you. They may not want to extend you a loan if you have a large amount of credit availible via ccs b/c if you then use that availib;e credit you might default on your loan. Basically, this will depend on your income. If you could afford to pay on your loan and all of your possible debt it wont effect you.
Hi fireyone
You should not spend more than 30% of your credit limit. This is because amounts owed contributes about 30% in your credit score and so use of credit over 30% of the credit limit will lower your credit score. Now if you use only 10% it will not affect you credit score in any way if you pay it back on time.
Sorry Anthony, but your info is not accurate. You can spend as much as you wish, but you should not allow to be reported more than 9% of your CL.
Okay now I am undrstanding a little better. I am not looking for credit I was just trying to figure out how this works. I mean if someone has all these open lines of credit and then goes to the bank for a loan I thought somehow that would count against them even if they didn't use all the money on the cc accounts. I know that banks have these debt to income ratios.
Indeed, some morgage lenders demand CL decrease before approving.
Some CCC may deny application claiming that an applicant has sufficient credit to his/her income.
That would make sense if they are going to lend you money that they would have taken some precautions, usually they are lending a great amount of money.
Hard these days to get increases, I know people that have had good credit who are now having limits raised but lowered for no reason at all, or their intrest rates are being raised for no reason.
There are new laws being passed to protect the consumers with these crazy credit card companies.
This is very true. Recently we paid off alot of credit card debt. We never put any new balances on the cards and did not close them. Every year upon renewal we usually got an increase, especially with discover card. This hear there was no increases in any of the accounts..not that I minded. I thought it could have been the big limit they already had in place or the economy. My guess would be the economy.
What really irks me is all the opt out letters these companies are sending when the taxpayers bailed them out and now they are going to charge even the ones with good credit quite a lot more interest.
It is very unfair, and you would think that they would want to keep their good customers as a good base income for their companies. Hard to say what they are thinking.
there will be new rules coming from the government soon on how they deal with customers, like they have to give so many days warning before increasing rates.
Fair enough, I remember seeing an elderly lady on TV who was shocked at her rate going so high, she actually could not afford it because she was on a fixed income.
I heard some things about the new laws coming into effect. What really has me stumped is why the government gave them a certain period of time before enforcing these new laws. This gave the credit card companies a really good advantage. Most hurriedly upped credit card interest rates and changed contracts before the new laws had a chance to pass. Some of the laws just recently changed a week or so ago...this is when we started getting opt out letters. What really amazes me is alot of these companies want you to pay your bill in full once you opt out and they close the card. Most have relied on credit cards to get them through the tough economic times and can not afford to pay them in full.
They should not be able to change the rules in the middle of the game. Do you have one that wants you to pay in full? I don't see how they can enforce something like that on an old account, rules should apply to new accounts only.
credit
I've tried to increase my credit limit on my card ( I have a $300.00 limit). I was 'denied' for the increase. Well...I suppose that's ok. Because I would have MORE of a debt, by increased CC limits. More %..that kind of thing. Increasing your CC limits isn't always a 'benefit' to you.