topic Re: Credit limit increase in Understanding FICO® Scoring

Credit limit increase

Anonymous — Sun, 03 May 2015 20:46:06 GMT

I just got an credit increase from $500.00 to $3500.00 on my Capital One card that I didn't request. My question is, will this increase drop my credit score? I have been trying to rebuild my credit for the past 6 months.

Re: Credit limit increase

CreditCuriosity — Sun, 03 May 2015 20:47:15 GMT

No be happy.. It will deffinetly help your score.. How much depends on your whole profile. Congrats on an auto CLI.

Re: Credit limit increase

icyhot — Sun, 03 May 2015 20:52:58 GMT

No that's great! CLIs help boost your overall utilization and provide leverage for other CCCs to give you higher starting limits. Congrats! Which card did you have? You were probably in the credit steps program if it was a 500 starting limit

Re: Credit limit increase

Anonymous — Sun, 03 May 2015 20:56:21 GMT

@Anonymous wrote:
I just got an credit increase from $500.00 to $3500.00 on my Capital One card that I didn't request. My question is, will this increase drop my credit score? I have been trying to rebuild my credit for the past 6 months.

Congrats on the increase. The increase actually helps you in terms of your score. You score will only drop should others things come into play when the CLI is reported. But it is a good thing.

Re: Credit limit increase

Anonymous — Sun, 03 May 2015 21:22:33 GMT

That's awesome! May I ask which Cap1 card you had and how long it took? I'm hoping for the same type of action since my credit score has already increased from when I opened the card. Congrats on the auto cli!!

Re: Credit limit increase

Anonymous — Sun, 03 May 2015 22:32:19 GMT

Generally, a CLI is a positive thing. It won't increase your score by itself, but it will help you keep a lower credit utilization rate which will help your score. For some people, CLIs can hurt, but this only occurs in exceptional circumstances.

Some small lenders are sensitive to the total amount of credit available to you. Thus, if you have more than your total annual income in available credit, these lenders might be careful about extending additional credit to you. Most major lenders, however, seem to extend credit to people with multiple times their income in credit. Alternatively, a single lender might be less willing to extend new credit when you have a higher limit with them. If you are near the cap credit they are willing to extend to you, they will usually deny any additional card applications. However, you can always call to recon the denial and offer to transfer limits. Simply put, more credit rarely hurts but in some very limited situations additional credit can hurt.

In your case with a $3000 increase in limit is most likely a very good thing.

Re: Credit limit increase

Anonymous — Sun, 03 May 2015 22:39:39 GMT

Thank you so much for the response. I was concerned that it might hurt my score.

Re: Credit limit increase

Anonymous — Sun, 03 May 2015 23:23:27 GMT

It will not hurt your score as long as your utilization stays the same or decreases.

Re: Credit limit increase

Anonymous — Mon, 04 May 2015 01:57:27 GMT

I have the Capital One Platinum card and have had it for a little over a year.

Re: Credit limit increase

Anonymous — Mon, 04 May 2015 06:30:10 GMT

Well you obviously earned some of their trust, maybe now is a good time to see if they will PC you to a card with better rewards?

Re: Credit limit increase

Anonymous — Mon, 04 May 2015 06:35:29 GMT

Super congrats on that cli! You scores should rise with the new limit. Lower utilization!