Requesting an credit increase on a card

**bjl584** · 03-08-2014, 11:03 AM

Increasing your credit line will ding your score a bit, but it's minor and temporary. I wouldn't worry too much about it. If you're responsible with the card your score will recover quickly.

**mholl95** · 03-08-2014, 12:36 PM

Hi mjtwelve....bj1584 is right. Since you're just starting out and building a credit history, you're bound to have some zigs and zags in your score as you expand to establish yourself. The key is to keep things on an upward trend.

But your FICO credit scores are really the ones that are used by 80% to 90% of creditors. Keep your eyes on those. You can get them from myfico.com

The credit card companies have access to your files. So they can see what's going on in most of your financial life. If you have negative items such as late payments, for example, that will work against them wanting to increase your limits.

But if your income has been rising since 2011/12, give them a call and let them know you make more money. Also, if possible, give them additional reasons for needing an increase. For example, you've begun to travel more for your job and need additional credit flexibility. (But not....I want to spend more so that I can earn more reward points.)

If you feel you have good reasons, pick an amount you like. I'd probably nicely ask for a slightly higher amount than I really needed and then see if they'll grant it or negotiate from there.

That's what I did when I graduated from university and my first job involved lots of travel where there would be lots of hotel stays, car rentals, meals, airline, etc. My little $1000 limit wasn't going to cut it, so they understood, and tripled it. Over the years, the limits just went up without me asking as they saw I was paying on time and not doing anything drastic.

cheers
michael

**snafu** · 03-08-2014, 09:21 PM

Is your job stable? Has your income increased? What interest rate do each card charge? What is your utilization percentage on each card? Have you missed any payment due dates? Have you requested an increase and been declined? Why are you so protective of your credit score? Are you planning to finance a large purchase like car or house?

**MJtwelve** · 03-10-2014, 01:20 PM

Is your job stable? Has your income increased? What interest rate do each card charge? What is your utilization percentage on each card? Have you missed any payment due dates? Have you requested an increase and been declined? Why are you so protective of your credit score? Are you planning to finance a large purchase like car or house?
^
Well I recently took a new job, at a 40% income increase from my previous job. My capital one APR: 19.6%, chase: 22.9%. Utilization on my chase card: usually 30-45% (800 limit), on my capital one: usually 0-5% (1,700 limit, no frills). I requested an increase a couple of years ago and was declined, but not since. I haven't received an increase on my chase card (the one I am hoping for an increase) in at least two years, maybe not. I'm protective because 719 is only a "good" rating, and I'm hoping to get to an excellent rating to put myself in a better spot in the future, when it comes to big dollar purchases. I don't have plans for the foreseeable future (being this year or next) but there is no harm in preparing early, I suppose.

Thanks.

Also a follow up question.. if I were to "change" credit cards (a card I would prefer with chase than the freedom card..) how would that impact my score, chances for a limit increase?

Thank you

**mholl95** · 03-10-2014, 01:36 PM

Hi mjtwelve...so why do you need an increase in your credit limit and have you made any late payments? It's seems like you're really itching to get more credit as soon as possible.

**Gailete** · 03-12-2014, 04:10 PM

My calculations tell me that between the two cards, you have $2500 in potential credit card debt. Why would you need more? I assume you are paying them off each month with those interest rates which are nasty. More credit creates more temptation. I would suggest that instead of focusing on these cards and any perks, beef up your savings so that item you want to charge for over $2500 can be bought with cash. If you aren't paying off your cards monthly what you really need to be asking for is a decrease in interest rate on the cards as someone who has been with them for 2-3 years. Many times is you get an offer in the mail for a 'better' card you can use the rates they show as an incentive to the companies to lower theirs a bit.

Other than that, I would forget about your credit score temporarily and call and ask them for an increase if that is what you want, since it seems that you want that. Unless you are planning on buying a house or brand new car in the near future it shouldn't cause any problems temporarily.

**snafu** · 03-16-2014, 02:56 PM

Reviewing the facts supplied, if you have not been late making payments or not missed a payment, I'd apply for a new card from another lender based on APR since your income has substantially increased. That would bring down your utilization level. I sure hope you are clearing that Chase card with nearly 23% interest. With savings paying 0.09% that seems outrageous to me. You don't want to close the a/c, just don't use it as revolving credit. How much did you pay Chase in interest in 2013? Thus far 2014? Capital 19.6% is pretty high when there are cards at 7%.

I sincerely hope you'll take action to pay off Chase. If you have used that card for items that have been used up like gas for the car or restaurants, you are using future earnings to pay for items long used up...long gone.

**Gailete** · 03-17-2014, 04:36 AM

Remembering my own credit card history, I don't think I have ever asked for a credit line increase. At one point I did ask Discover to lower my rate since I had been with them at least 8 years at that point and had a good history with them, no late or missed payments, generally paid more than minimum, etc. They were happy to. Now going on 14 years with them, I use them for convenience only. Hubby uses it as his only card (I never keep enough in the checking account that both of us can have a debit card at the same time). But the point is I have a long established history with them. Also have a long history with Chase (11 years). I have never asked for a credit limit increase, they give them to me AND they give me the better rates also. If I needed to I can usually get a zero interest amount except for the transfer fee for 6-12 months. I stopped opening those envelopes and we burn our garbage.

So when I see the rates that you have and if I understand correctly, you have only been with these credit companies 2-3 years, I doubt if they look at you as having been a long time user. Your interest rates tell me you have probably had problems of some kind with them, as those are usually the 'punishment' rates for late payments, missed payments, etc. I do believe that these companies also make note of when you ask for increases, etc. so unless you REALLY need more credit other than what you have, I wouldn't go for it with them. If you have been paying your minimums at least on time for a year, they might be willing to decrease your interest rate. But otherwise as I have already mentioned, if you are looking to make a big purchase save up cash for it. Your credit score will eventually rise on it's own with a good history of on time payments, and getting those cards paid off.

**Eagle** · 03-17-2014, 05:37 AM

Originally posted by MJtwelve View Post

My capital one is a student card I got while in college and does not have much in the way of "perks" (cash back, etc) whereas my chase freedom has much better perks.. much better cashback, as I'm already a chase checking account holder. For this reason I use my chase freedom card a lot more, and keep my capital one as a backup to sustain a healthy utilization level.

Is there a safe way to prod chase in possibly getting a limit increase without hurting my credit score? I'm currently at a 719.. not way too healthy, and I don't want to hurt it more. Though then again the 719 comes from creditkarma, so I'm not too sure how reliable that source can be in an accurate credit score.

Any advise would be greatly appreciated. Thank you.

Hi MJtwelve! Welcome to the forums!

719 is a pretty good score for your age and situation. With that score you should be able to get a decent cashback rewards card and/or increase the limit of your chase freedom card. What are the specifics of this card? Do you get 1% cashback on all purchases or something of that nature?

I had a student card when I first graduated college. Building credit is a process and takes time. Having an increase in income will greatly help your chances of increasing your credit limit.

I'd call and ask for a credit increase with Chase if I were you. I would leave the college credit card dormant (in other words don't use it or just put one transaction on the card every month or two). You do pay the CC's off every month on time?

I'd also shop around for other cards with CitiBank, Discover, or even American Express (AMEX)... Figure out what you like best (cashback or travel miles) and use the appropriate card accordntly. Just be aware of the possibility of a yearly fee for using the card and might be a good idea to avoid those...

My 2 cents...

**MJtwelve** · 04-06-2014, 01:08 PM

Thank you everyone for your great advice!

The interest rates are high because of the timing when I got the cards (Capital one being a student card.. and I got Chase shortly after getting my first "big boy" job with little credit)

I have not had any late payments on my cards at all. Taking all of this into consideration, (I didn't realize the rates I had were THAT high) I think I will try the route of decreasing my interest rate, showing I have been a good customer, even if it has only been for 3 years.

One of the reasons I was looking for a credit increase, is that I wanted to "convert" my chase freedom into the chase united mileage explorer card. Last year I was in a traveling consultant job and racked up miles and status with United, though unfortunately as I was mostly traveling within the East Coast, my miles didn't pile up as quickly as my (luckier) co-workers who were traveling to europe and etc. I was hoping to get a higher limit and convert to the mileage plus explorer card as, after 2,000 on the card, I can get an extra 50,000 miles, which would help me in my "vacation" goals this year. I know it sounds like "2,000?! Why on earth would you do that?!" but I'm lucky in that my apartment complex takes credit card payments, and as long as I pay them off, I figure I can get the miles and not get hit with high interest payments.

But taking your comments into consideration, I think I should see if I can lower my ridiculous high interest rate first.

And yes I am not using my student card as my "go to", it is just kept open and a transaction made every month or two to keep it alive.

Thank you!

**Gailete** · 04-06-2014, 01:34 PM

it is just kept open and a transaction made every month or two to keep it alive.

We have several cards that we haven't used in years. I would never bother trying to keep them 'alive'. I realize that runs contrary to many other's advice here but the last thing I ever worry about when handling my money is my credit score (which I think is the point with keeping cards alive). I'm more concerned with taking care of our financial needs correctly. I was interested in what my Discover card would show when they started putting our (mine) credit score on our statements and for someone that doesn't particularly give a rip what it is, I was surprised to see it was only 16 points from being the max it could be! I'm not bragging here, but several times over the years when I mention that you shouldn't be so worried about your credit score but be worried about handling your money correctly, I always seem to draw criticism that 'my' way isn't correct and protecting that credit score is the most important part of dealing with your finances. I just have always figured good financial management does more.

I can understand that if your job gives you good reason to rack up what I assume in the long run are reimbursed charges so you can get more points you might want that better reward card. I would think about calling Chase and asking them for the other card you want and a lower interest rate at the same time. They may just give you the card. Perhaps I missed it and you have tried that already. I know we only use cards that give us rewards. We tend to have frugal Christmases so some years those points make great inroads into our gift giving, so trying for a card that has better rewards shouldn't be a problem as long as everything else is equal with at least a lower interest rate. Assuming you pay it off each month. One month of not being paid off takes away a huge chunk of rewards depending on how much interest you end up paying.

Requesting an credit increase on a card