If you’ve been using your credit card responsibly, you may be eligible for a credit card limit increase.
Set by the bank or lender that issued the credit card, your credit limit determines the maximum amount you’re allowed to spend on a card. As you make purchases and build up a balance on your credit, the available credit decreases.
This can limit your ability to make expensive purchases. It can also leave you little room for flexibility in case of an emergency.
For customers with Capital One, increasing your credit limit is simple. You can fill out an online form or call customer service to request the increase. A history of responsible credit card activity characterized by regular on-time payments, frequent card use, and a good credit score can increase your chances of getting your request approved.
In this article, we explain the best ways to increase your Capital One credit card limit.
- Accounts that are less than 6 months old are not eligible for credit line increases. Secured credit card accounts backed by cash deposits, as well as accounts that have been given credit line increases or decreases in the past 6 months, are also not eligible.
- Credit limit increases can be requested using an online form or a call with customer service. If you prefer to do it through a call, be prepared to share your reasons for the request plus details of your income, marital status, and homeownership.
- Some customers may receive automatic credit line increases from Capital One as a reward for consistent on-time monthly payments.
Why should you increase your credit limit?
A higher credit limit can offer you several advantages, from giving you more flexibility in your budget decisions to helping you increase your credit score. Banks such as Capital One will usually approve credit limit increases by 10-20% of your current credit limit.
With a higher credit limit, you can make bigger purchases on home improvements. It also gives you the ability to create an emergency budget for items that are better paid with credit, such as plane tickets. Expensive purchases made on some credit cards may even be rewarded with extra benefits, such as extended warranties and longer installment payment plans.
For those trying to build good credit, an increase in your credit limit can also help you improve your credit utilization ratio. Calculated by dividing the amount of total debt you owe to lenders by the total amount of credit you’ve been given, the ratio represents how much debt you have on your credit cards.
The lower the ratio is the better your credit score will likely be. A good credit score improves your chances of securing future credit cards and mortgage loans.
Who is eligible for credit limit increases with Capital One?
You have to meet a certain set of conditions to be eligible for a credit limit increase with Capital One. Generally, customers who have been using their credit cards responsibly for 6 months or more are given additional credit.
Customers who fall into this group are those that make on-time payments on all of their credit cards. They pay more than the required minimum monthly payment on their Capital One credit card and keep the balance as low as possible.
These customers also check their credit score regularly using free mobile applications like Capital One’s Creditwise app to look for and correct any inaccurate or incomplete information that could impact their credit limit increase request.
There are, however, some accounts that Capital One does not consider eligible for a credit line increase. Accounts that are less than 6 months old, as well as secured credit card accounts which are backed by a cash deposit, do not qualify for credit line increases. Also, Capital One may decline credit line increases for cardholders that have received either a credit line increase or decrease in the past 6 months.
What information do you need to provide?
To increase your chances of securing a credit limit increase, you’ll usually have to provide your most recent total annual income, employment status, and monthly mortgage or rent payment.
Capital One uses this information to verify whether you can make the required monthly minimum payments, per Federal regulations.
Most of the information that you’ll be required to provide is not detailed. For income, you’ll just need to state whether you receive personal income (e.g. from full-time employment), shared income (e.g. from a spouse or family member), or optional income from federal benefit programs.
The same applies to the section on employment, where you’ll need to declare whether you’re employed, self-employed, unemployed, retired, or a student. As for the section on rent, you’ll just need to indicate how much you’re paying to your mortgage company or the amount of rent that has been specified in your rental agreement.
3 ways to increase your Capital One credit card limit
Increasing your Capital One credit card limit can be done in one of the following ways: by completing an online form, by calling customer service, or by being given an automatic credit limit increase by the bank.
You must know your current credit card limit before you contact Capital One for a credit card limit increase. This helps you determine how much of an increase you should ask for. You can easily find this information by logging into your Capital One online banking account or the Capital One mobile app.
Most customers ask for 10-20% more credit as it’s generally considered a reasonable increase. Asking for an amount that’s 50-100% more than your current credit limit could make you come across as someone who’s in dire need of money, especially if it’s your first time requesting an increase. The key is to request an amount that you’ll be able to pay off without accruing debt.
Here’s a look at the 3 ways you can ask for more credit from Capital One.
Request a credit limit increase online
The fastest and easiest way to request a credit limit increase is to do it through your online account or mobile app.
After logging in, click on the “I want to” section and select the “Request credit line increase” option. You’ll be presented with a form requesting details of your income, employment status, the amount of rent or mortgage you’re paying, and the credit line increase you want.
Simply complete the form and the bank will begin processing your request.
Call customer service
If you prefer to talk to a Capital One customer service representative about your credit line increase request, you can do so by calling the customer service number listed on the back of your credit card.
You’ll need to be prepared to provide the representative with the same personal details as you would in the online form, plus the reason(s) for your request. Whether you’re requesting because of upcoming home improvement needs or because your income has increased, make sure to communicate the reason(s) clearly to the representative.
Also, inform the representative of your history of on-time payments, good credit score, and frequent use of your credit card, as appropriate. Though you might not receive a decision on your credit line increase request during the phone call, mentioning your responsible use of your credit card will quite likely improve the chances that the request will be approved.
Receive an automatic credit line increase
In some cases, Capital One may automatically increase your credit limit if you have been using your credit card frequently and responsibly for 6 to 12 months. Capital One often looks to reward customers who make their monthly payments on time.
You may also receive an automatic credit limit increase if you have one of Capital One’s credit-building or student credit cards. Customers with these credit card accounts are usually offered a higher credit limit after five months of on-time payments.
What happens after you submit your credit limit increase request?
Capital One aims to process requests within a week, although it could take up to 30 days to review some applications, particularly if the amount requested is considered large. Customers with good credit histories may receive approval immediately, provided that the increase requested is considered reasonable.
Once a decision has been made, Capital One will notify cardholders via mail or an online message.
Does Capital One decline request for credit limit increases?
Despite your best efforts, Capital One may decline requests for credit limit increases if they consider your credit card spending or payment history to be unsatisfactory.
Oftentimes, cardholders who don’t use their card frequently or have missed a payment in the previous 12 months will not get their requests approved. Problems may also arise if a credit reporting agency, such as Experian, reports a late or a missed payment on your other credit cards.
Capital One has access to your credit report because it conducts a soft inquiry on your profile each time you request a credit limit increase. While this inquiry does not damage your credit score, it shows that all of your credit card activity is assessed when you ask for an increase.
If your request was declined, you should do your best to address the issues listed in Capital One’s decision letter. Fixing these may increase your chances of securing a future increase. It’s recommended that you wait between 6 to 12 months before making another request.
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