How to get a credit limit increase with Credit One Bank

Requesting a credit limit increase can be a good idea for multiple reasons. First off, it can give you more borrowing power – which can be beneficial if you’re looking to finance a large purchase. Higher credit lines are also good for your credit since they can positively impact your credit utilization ratio – or your credit card balance relative to your credit line.

Credit One Bank is popular among consumers looking to establish or rebuild credit. Getting a higher credit line can help with this goal. Read on to find out how to request a credit limit with Credit One Bank and what to consider before doing so.

Eligibility requirements

While Credit One Bank doesn’t have any specific requirements posted for a credit limit increase, there are a few things you can do to improve your chances.

• Avoid being late on payments and use the card responsibly. When you get an increased credit limit, it means the issuer is certain you can handle managing it. To create this kind of trusting relationship with your issuer, demonstrate your creditworthiness by paying your balances on time.
• Have your Credit One Bank account open for at least six months. Building trust with your credit card issuer takes time. Make sure to wait at least six months after you’ve opened your Credit One card before requesting a credit limit increase.

It’s also a good idea to avoid asking for a higher credit limit too often. First, the bank simply won’t have enough data for a new decision since the previous time it has evaluated you for a limit increase. Second, requesting more credit may look like a sign you’re financially distraught to your creditors. For that reason, it’s best to have at least six months between your requests.

Before you request a credit limit increase

Before you call Credit One, make sure you know what you’re going to say.

First, think how much of an increase you’re going to ask for. While it does happen that a bank will double or even triple your credit line, you’ll have better chances requesting a 10% to 20% increase. You also need to be sure you’re not asking for more than you can pay back to avoid the risk of accumulating too much debt.

The issuer will also likely ask about the reason you’re requesting a higher credit limit, so it can be a good idea to prepare a good answer. Maybe your income has increased recently, or you’re looking to finance a big purchase.

It’s important to know the reason for yourself as well. For instance, requesting a higher credit line can be a good idea when you’re working on your credit. Since it can lower your credit utilization, which accounts for 30% of your credit score, you might see your score go up as a result of the limit increase.

We also recommend checking your credit before you request the increase. The bank may do a soft pull to determine your eligibility for a credit line increase, so it’s better to know where you stand. Plus, if you have any negative entries on your credit report, they can affect your issuer’s decision too.

Process for requesting a credit limit increase

Now that you know how to prepare for negotiating a credit limit increase, it’s time to get in touch with your bank.

Automatic credit line increase

Credit One Bank advertises regular account reviews for credit line increases. New cardholders may get a higher credit line after five or six months of responsible card use. There’s no guarantee your limit will be extended, however, so you might need to take some extra steps to get the increase.

Requesting a higher limit online

Probably the quickest way to get a limit increase is to request it online. To submit a request with Credit One Bank, go to the issuer’s website and log into your account. After that, go to “Settings” and choose “Credit Line Increase.” You’ll be prompted to enter your personal information and indicate your desired limit increase. Once you’ve provided this information, you can submit your request.

Calling customer service

Finally, you can always call the number on the back of your Credit One Bank card and request a higher credit line over the phone. Be prepared to provide all the required information, as well as the reasons why you’re asking for more credit.

According to Credit One Bank, credit line increases are a systematic process based on a card member’s payment history with Credit One Bank, as well as their other credit lenders. A credit line increase request doesn’t trigger a hard inquiry. Cardmembers may request a review of their account at any time, with no impact to their credit rating.

What to do if your request is denied

If the bank couldn’t grant your request, don’t worry – you can always work on improving your chances. Start by asking the bank why it denied your request and what you can do to get a different response next time.

Here are a few other things you can do to increase the likelihood of getting a credit line boost:

• Improve your credit standing by making payments on time and keeping your credit card balances low relative to your spending limits.
• Use your Credit One Bank card regularly. The issuer may be reluctant to increase the limit on a card if you don’t use it often.
• Update your income on Credit One Bank’s website.
• Consider asking during a different time of year. A TransUnion study from 2019 showed that credit limit increases are more common between January and May.
• Consider applying for a new credit card. Sometimes applying for a new card is the best way to increase your overall credit limit because it can increase the total amount of credit available to you.

Pros and cons of a higher credit limit

While a bump to your credit line may always seem like a good idea, there are a few things to keep in mind.

Pros

• A higher credit line can help your credit utilization – and credit score – if you keep your balances low.
• You’ll have more spending power to fund large purchases.
• You’ll be able to earn more rewards and cash back if you spend more on your card.

Cons

• There’s no guarantee your request will be approved.
• More spending power can trigger spending more than you can afford to pay back.

Bottom line

Increasing your credit line can help you improve your credit score or fund a big purchase. Make sure you have the information that demonstrates your creditworthiness, however, and know why you need a higher credit limit. Having more borrowing power shouldn’t be the only reason to spend more.