When to request credit line increase?

[LilMissMinimalist]

Hello All —

I'm pretty new around here. I recently paid off all three of my credit cards in one swoop (10k debt total) and intend to keep them at zero balance. My oldest card, I plan not to use at all (but don't want to close it as I've had it longest). My second card I will keep occasionally active using only for online purchases I might need to return (a pair of shoes, for example). My last card (that I get cashback rewards with) I use for all my monthly spending, except rent + utilities.

Given this plan, and the fact that I paid off the cards last month, how long should I wait to request credit line increases? My card I'm using for all my monthly spending only has a 1k limit and I'd really like to have a higher limit on this card in particular.

...I'm thinking 3 months out? Are there rules of thumb for increasing your likelihood of being approved for a credit line increase?

[ClovisKid]

The criteria that the card companies use to determine your eligibility for a credit line increase has little to nothing to do with how long ago you paid off your balances.  It has more to do with (1) your payment history (100% on time preferred) with that card and (2) your credit score.  For #2, the credit issuer can do a soft query on your credit report any time to check your score and your other credit balances (I'm assuming they're all zero except for maybe a mortgage or *gasp* an auto loan).  They may ask you to update your employment information (employer, how long you've been there, your title, and your income) depending how long ago you originally applied and received the card.  Think of it as re-applying.  To maximize your credit score, you need to have very low credit utilization.  Most card companies report the balance to the credit reporting agencies the day after they issue you your statement.  I'm presuming that your credit utilization is very low, but it needs to be low overall and low on each individual credit line.  In the case of your $1,000 credit line, get to a $0 statement.  That means pay the entire outstanding balance off right before the statement closes because even a $200 balance on that one will be a 20% debt to credit available ratio -- which is too high to maximize your score.  Two days after that statement is generated, call them or apply online for the credit line increase.  Your credit score based on utilization can be volatile if you have low limits... I've seen score drop 50 points in a day with one charge on a low limit card and stay there until I pay off the balance.  The day after it's paid off, my score jumps back up 50 points. 

[robartsd]

It wouldn't hurt to do a soft-pull request for increase on the card you use regularly. The worst case is they say they can't do an increase at this time without a hard pull. Many of my credit cards have had soft pull requests available on the website after logging in to the account. I think they usually ask about current income level then respond with how much they are willing to increase and the option to request a hard-pull for the possibility of increasing it more.

[PoutineLover]

It might be a random coincidence, but it seems like whenever I request my free credit report, I get a letter telling me I've been approved for a credit limit increase shortly after. It doesn't hurt your credit and it doesn't cost anything, so you could try that. Also, with one of my recent cards, the initial limit was super low, but then after 6 months they were able to increase it by quite a bit. I've never carried a balance though, so my score is already pretty high, YMMV.

[LilMissMinimalist]

Wow thanks for all the helpful advice! This forum is full of it.

I pulled my free credit reports last week and between those + Credit Karma, I can see that my score has skyrocketed since paying off the cards last month (from 640 to 760).

I'm going to try the trick about paying the balance to $0 right before the statement on my next billing cycle and see what happens.

[LilMissMinimalist]

Hey ya'll the tips worked!

I paid the full balance on the card I use for all monthly purchases a day before the billing cycle ended, then waited 3 days (made no purchases on the card during those days just to be safe) and just called and was immediately granted a credit line increase.

It was a 1k card, now with a 2k limit. Was hoping for a bigger increase but this card is under a year old (Chase Freedom card) so it's good enough for now.

As a general rule, by how much percentage do credit lines generally increase, and by what guidelines? If I wanted to get this card that was issued at 1k up to 5k, is it just time (and good behavior)?

[seattlecyclone]

I think your credit score plays a big role here, and your self-reported income may factor into it as well. The exact criteria are generally proprietary.

[LilMissMinimalist]

Credit score is 760 now. It was 650-ish when the card was issued last year. Income reported = 75K (based off 2017 taxes). They also asked it I rent or own (rent) and what that monthly payment was ($725/mo.).