Does Requesting A Credit Limit Increase Hurt Score?
Does requesting a credit limit increase hurt score? That depends on which creditor you’re asking for an increase from. A limit increase request on your credit can trigger a hard pull aka a hard inquiry.
But, how badly it affects your score is based entirely on your credit history.
To be clear: The act of requesting an increase may qualify as a hard inquiry, but actually getting an increase can help your credit score (more on this below).
Do Your Due Diligence
Not all credit card issuers make a hard pull on your credit report, so give them a call and ask before making a request.
Some creditors will offer you an automatic increase if your payment history is up to par. You are in a great place if you’re with a creditor that will grant your request based on having a good standing with them.
From there go with the creditors that pull and make sure to only ask for an increase on one card at a time. That includes any credit line types (revolving and non-revolving)
Also, be sure to check your credit report for errors, delinquencies, medical bills or recent issues so you know that you have a good chance of getting approved. You wouldn’t want the hard pull to hurt your score for nothing.
Banks we know will make a hard pull:
- Bank of America
- U.S. Bank
Banks That Won’t Pull:
- American Express
- Capital One
- Wells Fargo
*Still, policies could change by the time you read this so call and ask anyway.
Related: Ovation Credit Services
Will requesting a credit line increase affect my credit score?
Negatively, because the request itself will give the creditor reason to make a hard pull on your credit report which will then drop your score temporarily. It affects it for about a year and drops off after 2 years.
- Positively, because if granted the credit increase you will then lower your credit-to-debt ratio aka your credit utilization (uti) percentages.
Basically, the more credit you have and the lower your balance, the better you look like a customer/client/applicant.
As you can see, the good definitely outweighs the bad. Once the increase kicks in you will also get a boost in your score. Oftentimes, that boost will be higher than the drop.
Lowering your utilization which you want to be kept below 20% and if you’re trying to raise your credit score by 200 points or more, you’ll actually want to keep that number below 10%.
Related: The Best Credit Repair Companies
So, Does requesting a credit limit increase hurt score
Temporarily, but if you are approved it will improve your score by lowering your utilization. You just need to keep your balance the same, do not overspend because you’ve got an increase.
Keeping your uti low shows card issuers that you are responsible with your finances and that opens more doors for you in the future.