Viewing a single comment thread. View all comments

New-Row7111 OP t1_je8lkcw wrote

Reply to comment by InteriorAttack in Why are we encouraged to charge everything to a credit card but get penalized for high credit utilization? by New-Row7111

The card I currently use is through my bank. Can I have them extend my credit limit or do I need a new card completely?

Edit: "or do I need a new card completely"

4

JustASrSWE t1_je8m0v9 wrote

You can typically call the bank and put in a request for a higher credit limit. Some banks will let you do this online. You shouldn't have to get a new card.

18

Full_Prune7491 t1_je8rb0s wrote

I just log in online and click credit limit increase button. Bang 5k increase.

8

DinkleButtstein23 t1_je98l6k wrote

Yup, I've always done it this way. They've also given me increases without me even asking. I have a total limit of around $30k or $35k with 2 cards.

2

micreyes11 t1_jea0jbk wrote

Is it still a hard pull if you get a CL increase this way?

1

Full_Prune7491 t1_jea10ga wrote

Not sure. People are obsessed with hard pull. Soft pull. Again credit is only important when you need to borrow money. Don’t this when you are applying for a mortgage if you are worried.

5

bury-me-in-books t1_jedqo3u wrote

I had a bank employee tell me recently that if I wanted more info on the loan I was looking at, they would need to do a hard pull on my credit, and that it would be a 10% hit on my credit score. I'm not sure she was right, but I'm not willing to test that lol. I told her thanks for what info she could give me without the credit check, and then made a mental note to see how much a hard pull would actually affect my score by researching online, without doing one until I had to.

1

ecohen2010 t1_jecdnbn wrote

I have never had a hard pull for any credit limit increase.

2

Retrooo t1_je8m4em wrote

You can ask them to raise the limit on the credit card you have. But also, you really don't need to be worrying about this.

4

ahj3939 t1_jear4s2 wrote

Why not both?

Ask your bank for $5k limit, wait a month or two, and then apply for a new card from a different bank.

Higher limit on existing cards will get you higher limit on new cards.

3

RO489 t1_je9a8tf wrote

You do not need a new card, but if you aren’t getting good rewards on your back card, you may want to apply for a different cash back card

2

houdinikush t1_je8mfzv wrote

Go to your local bank branch and ask them for a credit limit increase. You might have to sit down with someone for a few minutes and “apply” for it and verify all your information. If you’re approved they will increase the limit to the request amount.

I just did this last week. Asked for a $600 increase and I was approved. I’ve had this card for over 5 years and I’ve had a couple missed payments over the years.

1

bury-me-in-books t1_jedqg4k wrote

Don't get a whole new card unless you plan to keep it for awhile, because the age of your credit helps you, and if you add a new card on, in the short term, it will bring your credit age down, and therefore your score down. If you decide to get one, do it to either get a better interest rate for the long term, or to get rewards that you will bank and use in the long term, but just know that in that scenario, in the short term, it might bring the score down. It is a good idea if you're playing the long game, though.

Examples when this might happen: you get engaged and want to go on a honeymoon in a year or two. You could get a travel card, and make loads of purchases through it, paying it off as you go, and then accumulate travel rewards to a free flight on that honeymoon.

1