Do your CC companies automatically raise your credit limit

[Fraggable]

It used to be that I always got rejected for CCs every single time I applied, then my bank who I've had checking and savings accounts with for 4+ years offered me a card so I took it. Weeks later the offers were flooding in but I didn't take any because I didn't need them.

My bank started me out with a credit limit of $3K, then about 6 months later raised it to $4.5K, then I logged in today - about 6 months later - and found it at $6k.

I don't really mind, I may find a use for that kind of credit in the future, but I wonder if other companies do the same thing, and without mentioning it to you? And does this have a negative impact on my credit score? I have a total of about $16K in credit available and only make about $21K/year.

 

[shortspanishguy]

no it wont hurt your FICO unless they are doing a hard pull.

 

[Snakexor]

wth is a hard pull

 

[Aimster]

I had a limit of 12k on one card.

my bill for the month looked like this:
.98
3.43
3.00
2.00
1.00
4.93

I didn't feel like using cash or my check card.
I got a notice that they dropped me down to 9k limit.

So I put my school tuition on it and all my big expenses. Next month I am back up to 11.5k

So I take it.. don't spend small stuff on your credit card. Unless you mix it in with big purchases.

 

[mugs]

Yes they do, no it doesn't hurt your FICO score.

 

[Sex Smurf]

should actually help your credit score, right? more available credit that you're not using is always good.

 

[MichaelD]

Here's the best advice on credit cards you'll ever get.

1. Have one or two.
2. NEVER carry a balance to the next billing period; not even $.01.
3. USE them, even if you have cash in your pocket.
4. BEFORE interest can accrue, pay off your balance.

 

[Wapp]

I get a letter in the mail every time USAA increases my limit. They include "Courtesy Checks" so I can easily transfer balances from other credit cards at a lowered interest rate.

 

[Aikouka]

I believe the FICO score is raised if your balance is below 50%, so if it causes that, it's helpful. And yes, they LOVE to raise your credit limit . Mine went from about $1000 to $9000 in the course of 3-4 years I think?

 

[shortspanishguy]

Originally posted by: Sex Smurf
should actually help your credit score, right? more available credit that you're not using is always good.

It will allow you to keep a low Utilization % as well.

 

[MikeyIs4Dcats]

it will help your debt/credit ratio. The only bad thing is if you get a lot of cards with high balances, some other lenders may view that as a risk, but if you have demonstrated good credit history, they will overlook it.

 

[Vic]

Originally posted by: Snakexor
wth is a hard pull

A "hard pull" is a credit inquiry directly associated with a customer-initiated credit application. It shows up on a credit report as an inquiry and has a small negative impact on the consumer's credit score (usually negligible, unless there are a large number of inquiries in a limited time).
This contrasts to a "soft pull," which is where a lender, bank, or credit provider accesses a consumer's credit information for marketing purposes without the consumer's knowledge (this information is usually limited to name, address, phone#, and credit score, but can be tailored to certain perameters more detailed than that). Soft pulls have no effect on the consumer's credit score. If you do not want this information accessed, call 1-888-OPT-OUT-5.


To answer the OP: increased limits help your credit score, not hurt it.

 

[Riverhound777]

Yes they raise it and yes it is good. Mine has raised and my highest card has a limit of $6300. I kind of wonder why it isn't higher though. I have a credit score of 770 and have had credit cards for 6 years now. I don't really need it, but it makes me wonder if they only give high limits to those who keep a balance or if i'm doing something wrong.

 

[shortspanishguy]

Originally posted by: Riverhound777
Yes they raise it and yes it is good. Mine has raised and my highest card has a limit of $6300. I kind of wonder why it isn't higher though. I have a credit score of 770 and have had credit cards for 6 years now. I don't really need it, but it makes me wonder if they only give high limits to those who keep a balance or if i'm doing something wrong.

The income you give the creditor plays a role as well.

 

[T9D]

They always raise mine automaticly every time I get close to the limit. So I will spend more and have more debt for them I guess. Started at $5000 and is now at $14,000.

And dont hassle me about debt please, I know I should pay it off eventually but I have never once been required to pay a cent on it since I always make multiple payments. I have never once seen a required payment. It always says"next payment amount $0". Plus I use this credit card for making money when I remodel places for my jobs. I just keep investing the money though in the next property instead of paying it off. I have almost half a million in assets so I'm not in any trouble at all. But yes I'd rather not have the debt. Next property I sell I'm just going to pay it off.

 

[PricklyPete]

Yes...all CC companies do this for the most part.

 

[Ausm]

Originally posted by: Snakexor
wth is a hard pull

Not applying KY on your hand first.



Ausm

 

[MixMasterTang]

nm

 

[Nocturnal]

The only card that has ever risen the limit has been my gas card, Chevron. Others, nope, none, never. Well maybe that's because I only have one other card lol. Amazon Chase card ftw.

 

[Kelemvor]

The only time it can affect your credit rating and such is if you have too many. Everyone looks at your Current Debt but some places also look at your Potential Debt. Mean if you have 10 CCs and each has a $10k limit, you could Potentially go out and charge $100,000 of goods tomorrow.

But unless it's really out of line, it should affect it much.

We usually just call in and have them put ours back down if they crank it up too high.

 

[Fraggable]

I viewed it as a good thing and figured it might have been related to my being approved for my new car's $22K loan, but I know sometimes things that seem like they should be good are really bad for a credit score.

I only have 1 card that normally carries a balance, and that's almost paid off now. I really only have 3 cards, the rest are accounts like Paypal Credit, Newegg Preferred (which I wear out) and Best Buy credit.

Thanks a lot for the input, I definitely learned something.