Why You Shouldn't Ask for a Credit Limit Increase

[@AskSebby]

Which card issuers do a hard inquiry for a credit limit increase?: kzbin.info/www/bejne/qoTdZp6FidNgf8k

[@JCizzleSoCal]

Chase does....

[@mikedean481]

ROFL!!!

[@itrthho]

I can confirm that Chase does, but they will tell you.

[@MissEnglish123]

Sebby how do u reduce ur credit limit?

[@ashleywallace6188]

Not Capital One!

[@GraphicDesignations]

Hey Sebby... we need more people in the world like yourself, b/c too many people just look out for themselves and don't reach out to help people the way that you do. Keep up the good work!

[@tubro007]

Sebby's only here to help himself get paid by KZbin get a clue, but it is nice that he provides some useful information.

[@Zzcctennis]

Not all credit limit increase request, get you a hard inquire. In that case I see nothing wrong in the increase. If you keep using your card properly, like before getting the increase. I see nothing wrong with it.

[@InthenameofYeshua]

TennisBoy it'll raise your credit score

[@Zzcctennis]

Thats correct. With a higher limit and spending the same like you normally on the card you will lower your utilization-ratio

[@RedRider1600]

You should watch the video again. He explained why getting high credit limits can be a bad thing.

[@robo2901]

I've also found out that it helps to always update your annual income as it increases (hopefully) as many times lenders will automatically increase your limit without a hard inquiry.

[@nist7]

Sebby, just found your channel. I personally found a higher limit was useful since I was helping to book travel for a wedding party and I got rewarded with lots of points. One tip that I don't see often mentioned: Chase will automatically increase your credit limit if you max out your credit limit and then you pay that entire balance off immediately within a statement cycle. I have a Chase Ink Preferred card and essentially tripled the credit limit after I almost maxed it out and then paid it off immediately before the next statement due

[@hornets06]

My Chase Southwest Premier started me off with $3,500. 6 months later they upped it to $7,000. 12 months later they upped it to $16,000.

[@fksara7708]

did you call and ask or it was a timed increase?

[@jamesmoore8873]

What credit score do you need for any chase credit cards if I have a score between 618-658 with an annual income of $40,000

[@redd7188]

Some cards don't run your credit for an increase. Also, you can simply ask beforehand but I would suggest calling and not doing it online.

[@elizabethnwachukwu5310]

Capital one does a soft pull .

[@theethicalhacker7271]

I think in the beginning it’s important because the higher your credit limit is the less likely you are to go above 30% utilization if you spend within your means. I don’t understand the 200k credit limit though 😂

[@palmtreewhisperer]

The ultimate flex 💪🏼 😂

[@foudres06]

Critical thing for this 30%. First having less than 10% is going to help a lot, so forget even of 30%. Then you can just pay before it get reported and put your usage to 0% or 2-3%. Actually you should not cross 30% (or even 10%) on any card.

[@dugroz]

I asked for a credit limit increase on my Discover card & was granted a modest increase ($700) without a hard pull. I just had to update my income info, which I hadn't done in a long time.

[@Yerrarat]

I could listen to you spew knowledge all dayyyy longggg

[@sebastianshaw210]

Meow at me Meghan

[@etizoman2403]

meow meghan Same!

[@BrianErwin]

my credit utilization is high at the moment and credit line increases help offset the debt to credit ratio

[@nightwaddie5426]

I agree with this advice if you don't really have any financial responsibilities in the horizon, but if you are trying to get a car or a mortgage in the next year or so, I would argue that it's better to ask for a credit limit increase. A hard inquiry should only marginally affect your credit score compared to a new account hitting that Average age of accounts pretty bad. Both should decrease the credit utilization, but one will be more effective at increasing your score in the short term.

[@jilliand6591]

I just increased my limit today because I thought it was a good idea to have a higher limit. wish I saw this video first.

[@razorbacks1983]

It's not gonna hurt u that bad might drop your score a few points for a month then it will jump back up

[@CaradhrasAiguo49]

Didn't know about the decrease CL option, thanks much! I already have UA Explorer, CSP, and Hyatt with Chase and might cut it close against my limit with the Marriott+Freedom next year, so preemptively decreasing on the UA+Hyatt would be a very good idea!

[@bjtwuk]

Just so you know, Citibank will not allow you to transfer a credit limit from one card to another.

[@helena3631]

capital one also

[@Archangel552]

As always, excellent info. The more you know, the more you can maximize the benefits on your credit/charge cards.

[@consumerdebtchitchat]

My major credit card that I love increase me $800 and I said, "You can do better." I asked for a manual review and got a 2k increase. This puts me at a nice 7k limit. And this card allows me almost UNLIMITED balance transfers at zero percent for 6 mo. or 4 percent for 12 to 18 months. Haven't paid cc interest in years! It's all about leverage in my world. Love it!!! I (Like your channel - new sub. as of late)

[@jala5293]

The reason that people want such high credit utilization is because keeping your utilization between 5-10% is how you get above an 800 Fico score. Hard inquiries temporarily reduce your score, the decreased utilization will permanently boost your score

[@rometimed1382]

Thanks for the beginning... I was thinking "Why would I ask for an increase when they phone me to increase it every other year?!"

[@stonedog23]

I thought this was going to be some earth shattering news. I think most people try to avoid hard inquiry credit increases. But if you aren’t trying to get a mortgage anytime soon or one of the inquiry sensitive cards, there is no need to be afraid of a hard inquiry at least once a year if it isn’t for a new account, but just for a credit increase.

[@JonelleElise]

Wow this video was awesome! I never thought about comparing just applying for a new card vs doing a hard inquiry for an increased credit limit. It does make sense to just apply for another card. I'm planning on applying for my 3rd credit card (chase freedom) this fall to hopefully get more credit. I want to be able to have a lower utilization (although I don't overspend) by having 3 cards. I'm new to credit so thanks for this information on your channel!

[@Anthonyjones-pq4ff]

Jonelle just don’t over 30percent mutilation in another tip pay before the closing date

[@davidlegge4665]

I am in AU and have 1 card with a $500 limit. Life is so simple for me. I had limits of $90k a few years ago. Love your videos.

[@ex0stasis72]

Huh, I learned something new. I should consider downgrading my limit on my old cards I never plan to use anymore so that my new cards in the future from the same company can have a higher limit.

[@zintun3575]

You can ask for credit limit increase without getting a hard pull. Soft oull doesn’t affect your score.

[@mcomeslast]

I have in the past only because it was raising my credit score by changing my ratios. I don’t now because I don’t need it. I don’t want creditors concerned. I have 2 that gave me very high limits. I’m not calling to have them lowered yet. Discover doubled my limit last year and Navy Fed credit union gave me a limit that is half my income. I’m flattered but I won’t use an 1/8 of it. Once i get a CSR or CSP, I’ll have then lowered.

[@flycoolchick]

its 2019 and this info is still relevant! Great job...very helpful

[@Emmanuel-ne3oi]

Not

[@leopold2427]

Let’s be real. Credit cards are especially good for businesses, and in case of extreme emergency need, or for people who are extreme consumers and pay everything off. The security for transactions is best of all. The more cards you have , the more you’ll spend to get The benefits. Be frugal, and stop behaving like credit card moochers , that’s the most pragmatic way to save money.

[@thefpvlife7785]

I'm 53 n have been a thin file with a Avg 790 fico my entire life. I'm ok with that.

[@gamester1416]

I got my credit limi increased without having to ask them. I have several cards but I just us them for gasoline and car maintenance most of the time.

[@222222e]

I don't understand why people think the banks lose on defaults. The bank wins regardless if you default or not. The bank doesn't even have anything at risk with credit card payments or on credit cards. They can write off the balance of your statement and recover it to settle with the DTCC.

[@jackb99]

Ask Sebby, is prepaying your card negative in anyway? Like will it show like you’re not making payments?

[@MaxMikescrool1]

No

[@CytotoxicTrev]

My girlfriend had suggested I ask for a credit limit increase, but I find your strategy of simply applying for a new card to be more appealing.

[@LDPS88]

made a few good points and you mentioned length of credit as a factor. but if you had 1 card with a 10 year history and are considering an increase or a new card, a new card would lower you average credit history to 5 years and take 5 more to get back to 10 years average vs getting the increase you would have 15 years average history and the inquiry would ave dropped off in both scenarios. fyi i have used both strategies in the past.

[@robo9876]

if you request a credit increase online they dont give hard inquiry

[@StewartLucrative]

Not always

[@drzshory]

thats a lie. I've done two online and both did hard inquiry

[@dannytorrez1800]

hi why i want a high limit card is just in case i have car repair or somthing comes up i want to be able to take care of it. i dont want to use it for day to day spending. any ideas on what card i can apply for?

[@Heisbig]

this makes sense to do, anything over 25k credit limit would be overkill and me charging anything past 1000 for a signup bonus/points in a year would be near impossible as at least a third would have to be gift cards. I plan to cap out a 5-8 CC in my lifetime with one or two being store CC's.

[@dieyoung8259]

2 cards from capitol 1, asked for an increase they bumped me up to $3500, spent about a grand, paid it off. 6 months later I applied for a new card from capitol 1. They hit me with a $10, 000 credit limit on second card. I totally missed out on the rewards for spending x amount within a certain time for rewards points. Kudda kicked myself. I'm cooking with grease baby!

[@Coecoebrown]

I did an increase because none of my current limits were over 10k and I plan on getting the CSR in the future without a history with Chase. The inquiry by itself does not effect 5/24. It’s not a bad thing if you don’t increase spending along with it. For most people, decreasing a limit is not ideal as it raises the DTI.

[@roberthansen2008]

You are very helpful. I learn more watching your videos today and no one ever taught me this stuff when I was a lot younger say 20 years ago or 25 years ago. Even 10 years ago. Thank you thank you thank you

[@mariomario2589]

Moving part of your credit limit to another credit card with the same bank. That was good info I did not now I can do that.

[@TheReccafire]

Sebastian, can you do video on Canadian credit cards. whats the best one. and american exchange vs canadian and transaction fees and etc. thanks.

[@CJ-111]

I have a question. I got a credit building card 2 years ago with a £200 limit. I managed to get a card a year later with £2000 increasing to £3000 this year. My original card is never used and is still £200. How much will it affect my score to cancel the lower one? I don't use it at all.

[@CJ-111]

@@frankmatthew4220 the limit on the card I'm talking about is 1500.. not great tbh

[@joseph2705]

Happened several times that I max out the balance and keep it for a few months like 5 or 3 and pay it off in full and they always increase

[@joeburns9788]

I will take credit for sparking this topic when i asked you a while back! I think you're definitely right. Before the video I never really thought of having a credit limit "ceiling" almost. I think I'm going to keep just enough credit where my average monthly expenses are equal to 1 percent or less utilization.

[@joeburns9788]

i do have to say AMEX 3x credit limit increases with no hard pulls seriously helped my credit score when i first started. So early on, i think its a great tool. Eventually you're just turning yourself into a risk

[@crzune]

You are asking the average person, but some people use their card for business or work purposes. For example lets say you live in a metropolitan city that has loads of businesses, warehouses and factories spread through a state but you can't get to them because of distance and you don't have a car. If you used a credit card to buy a card to hold down a job that is good because you are getting return on investment if however you are spending just for leisure then it's pointless, when I use my card I try to make I call a 'justifiable purchase' something that is essential or that somewhat important or will give me back value. Good video though

[@jessehernandez536]

buying a car on a credit card ? let’s say you have a 20% interest rate on your card. you just made an awful purchase, it’ll take years for you to pay off a car at minimum payments. i also understand not everyone in the world has the pleasure of financing. but still buying a car on a card would pretty much be robbing you every month.

[@jamesmoore8873]

What credit score do you need for any chase credit cards if I have a score between 618-658 with an annual income of $40,000

[@keenan8140]

I've asked for credit limit increases and most of the time the creditors use their internal metrics to make a decision rather than pulling my credit report. I always ask if the request will result in a hard inquiry.

[@ochicoloto3524]

Thanks for the video. If all my reports are frozen, can I apply and get approved for a credit limit increase on already existing cards?

[@Nathaniel_Peterson]

I would never ask for a credit limit increase if I knew it would result in a hard inquiry, but I've seen many banks offer credit limit increase request forms on their respective websites. You just have to do a little research and make sure there is no inquiry before hand.

[@AskSebby]

Many also do it automatically :)

[@roxcyn]

I've never done either unless they offered it like you said. As far as suing for credit card debts many of them do because if they win, you will be responsible for all the legal fees.

[@jonathanhenriques2459]

I requested a higher interest rate on a card only because the guy on the phone told me it was a soft inquiry and wouldn’t hurt my credit score at all maybe a week or two later my score went down 31 points. This was through Bank of America. Did the guy lied to me and tell me it was a soft inquiry that wouldn’t hurt my score but it was actually a hard inquiry? Do credit increases ever go through with a soft inquiry? And if so do they not hurt your score as much or if none at all? Where are they typically always hard inquiries cause if that’s the case I feel like I was lied to

[@jakecalderon6063]

Thanks for the video man, a lot of good information.

[@VLADB07]

Here is my logic, you can have 1 million in credit limit...there is no point in it because it's not your money You need 3000-5000 max, for big big purchases maybe a little more, but you really don't need more credit limit What's important is the x4 or x5 on a reward category, insurances, annual price, foreign exchange, ease of redeeming the points to other different reward programs and even lower interest % is better than just credit limit, a limit doesn't add anything unless you will be purchasing something huge, but then again most cards don't allow more than $1000 or something in a day for security reasons I got approved for $10k with Amex Cobalt, and it's just useless to me, I am more afraid of having that much, I would be more comfortable at 5k, but then again I will share the card with the family member, so it might be more room to purchase stuff, but still not to the 10k limit

[@christophermartinez5160]

Is a product change also subjected to a hard inquiry?

[@laydijae]

Why is having a high credit limit detrimental if you have an extensive track record of paying off your cards in full every month? I understand you say it's not necessary, but how is it detrimental?

[@SamuraiEdge556]

There’s a KZbinr that said put 30k and they’ll counter offer with an amount at the highest they can give you. Is that true?

[@danielb3863]

With a Visa card you should always try to increase your limit to 5k in order to get a Signature version of the card. Great benefits and usually no annual fee.

[@Zzcctennis]

How do you know a 5k limit is a requirement for Visa Signature card?

[@AskSebby]

The assumption here is that you're lowering from a limit like $25k to $5k.

[@thefpvlife7785]

Capital one sux. 22 yr perfect history n a 791 Experian fico n for the first time in my life asked for an increase from 10k to anything above that n they declined me. Yes I'm employed. I'll never deal with cap one again.

[@missdesireindependance5194]

When I apply for a new card my credit limit was only 1k which is low. When I increased my credit limit on one card I got 5k. Not sure why it work that way.

[@javieralvarez2693]

Always ask for in house credit line increase.

[@skylinespaces2265]

did you just request the bank to lower your credit limit?

[@crismtz2818]

So I'm confused,I'm making a BIG payment soon my card had a limit of $1,000 and applied and got approved for $18,500 is that a temporary increase?? It seems like it's to high and good to be true?? Lol

[@luckygirlfromtheislands7592]

How much credit do you think is appropriate for ones income? Should it be equal to or less than ones income?

[@rajagopalchadaga6892]

When you request multiple new cards, does it not reduce your credit score?

[@LilBleachThaGod]

It can slightly reduce but if you get a card y’all end up with more credit which will raise it ! Main thing is to be on time with payments and just set it to autopay also just make sure your first card never gets canceled 😂

[@nevtube15]

Should I keep a zero balance on most of my cards?

[@RafaArtistManagement]

Run Away, Lol 😂🤣😂

[@mistermister8998]

You’re overlooking the fact that a new card lowers the average of your accounts. I credit line increase does not. Just a thought

[@AskSebby]

As a reminder, this is a "how to travel using credit card signup bonuses" channel so the expectation is that you'll have your AAoA drop at some point. x steps back, x+y steps forwards.

[@LilBleachThaGod]

Y’all also have more overall credit which will help your score more in the long run !

[@Peter-wp5vb]

It's smarter to keep money in a savings account instead of paying off a credit card before interest starts accruing.

[@WhatTheFishFry]

Are you some kind of crackhead? Or perhaps you are making a pathetic attempt at being a troll and providing misinformation? Even basic math will prove the complete opposite. Best case scenario, highest yield savings account would have a return rate of around 2.5%. Interest rates on most CC's are 15-30%. This makes for a difference of 12.5-27.5%, meaning you will pay MORE in interest bearing CC debt vs holding the money in a savings account.

[@tajanelson4205]

If you've made this mistake before how can you fix it?

[@VincentPascual]

I have one Citi card. I am thinking about applying for another Citi card. If I decrease my credit limit on my Chase Freedom, would it increase my chances of a higher CL on the Citi? In other words, do issuers look at the cards and CLs you have with other issuers to determine how much of a CL you get on a new card with them? Another thing: I got a CL increase on my CIP without asking for one.

[@GHNairn]

How does credit card balance get paid if you die? Also, do older people say over 70 years old get discriminated against to get higher limits or even getting higher balance cards?

[@dwayne1172]

Yes, you'll get the new offer but for someone with limited credit will take a 2 yr ding to their credit score.

[@dcrump]

Do you still feel the same? Currently

[@AskSebby]

Yes. I don't mind an inquiry. If I'm eating one, why not get $200 back? It depends on your priorities obviously (i.e., if you're trying to close on a house in the next 6 months, then it's non-optimal).

[@miguelmontenegro6181]

Question what is the best credit card for start building. Credit

[@sergeantenglishbeginnersen7749]

I have a discover card. 2. They closed one of my accounts and said they need a verification release form so they can check my tax filling from the government. I have never been late but I did lie on my income when I opened the account. Will account holder closing. The account on my credit report hurt me .?

[@geno1309]

I have an amex as authorized user for the last 12 months with a $17k credit limit. I was just approved for my own primary card with a $25k credit limit. I don't need the much of a limit and would like to lower the limit to about $10k. Would that run the risk of red flag and being hit with a financial review?????

[@johng.5100]

Who cares? Just keep the 25K

[@gj.sandoval2679]

Don't you still get a hard inquiry on your credit when you try to open a new card????

[@AskSebby]

Credit Limit Increase = 1 inquiry New card = 1 inquiry + intro bonus (most bonuses offer $150 to $1,000 in value)

[@tubro007]

Where does one find Online Communities working towards high credit limits? I can't find online communities for anything, all that comes up in searches are articles.

[@LilBleachThaGod]

JoeDago I’d try Reddit

[@tubro007]

@@LilBleachThaGod I'll give Reddit another shot, seems to be the only diverse online forum.

[@spencerbott4]

How often does Chase offer CLI? I got my first card with them 11 months ago. Hoping it's once a year? Anyone know? I'd rather not take a hard inquiry

[@ca8a]

Bank of America doesn’t do hard inquiries for increasing credit limit.

[@itsmesteve1081]

I don't get the part where you talk about transaction fees towards the end of the video. Could you please elaborate on that?

[@SONYAdicto]

What about the man that has more than 1000 credit cards? Is his income SUPER huge?

[@NayteeD]

Should i apply for a balance transfer from a card with 7k and 14% interest or wait to refinance my car in a few months with 20k debt and 12% interest?

[@pepidelgado]

I have student card with a credit limit of 300 and it can take days before the charges are posted. I will be going to Europe in December, so I'm hoping they will offer an increase in November. Should I wait a month before I leave to ask for the credit increase? I pay off my credit card every week. To be honest I don't even need credit I'm just trying to build my credit score for future me. I am trying to avoid foreign transaction fees with my bank

[@TheeeRevoked]

Wouldn't it be nice for having more leeway for your credit utilization ?

[@XPoChangLinX]

Taiwanese Whisky~~ Lots of good info, Trying to get an Amex Platinum in two years.

[@125henni]

Learned this the hard way

[@JesusCabelloSchomburg]

I got a new Wal-Mart Mastercard (Capital One), and they only gave me a $300.00 credit limit, you can bet that I'll request a credit limit increase ASAP, right now it's almost useless!

[@stevenjenson]

Well if you ask your issuer if they hard inquire or soft for card increases. I’d rather increase 1 card then to get another hard inquiry getting another card. I have a 800 credit score I have 2 loans my house and credit card. I built my credit doing secured loans starting at 18 now I’m 23.

[@AskSebby]

Depends on your goals I guess? The main point of this channel is generating points from credit cards.

[@stevenjenson]

Ask Sebby absolutely I’m not saying your wrong because your way works! We both have the same idea and that’s avoiding hard pulls if you have to, if you have to yeah it makes more since to open a new card. Keep up the good work though!

[@wedel610]

When prepaying your card, why do you leave $1 until the monthly statement is created?

[@JojoAnthony]

So the bank reports it, otherwise they can report you of having a $0 balance and the card is inactive.

[@wedel610]

Thanks, Jojo. That makes sense.

[@m.e.5446]

Great video👍 I'm now rebuilding my credit I have the discover it unsecured card under 5,000 what should be my next card with no annual fee with maybe cash back options maybe you should just do a video on that thank you 😊

[@re9473]

Hey I have a question I had my capital one credit card with a $500 limit for the longest and I may be doing it wrong ..I make sure that it reports to them at zero balance both on the report day and also my due date .. my question is that I just recently saw something that I should have something reporting at 30 percent How much should I have reporting to them? Also any other advice you have I’m trying to build my credit score up.. Also I have a $1500 limit on a care credit card that’s completely paid off and I really don’t have any use for it

[@Master_LaSon]

I want to see these people raising their limits and running away! GO! GO! GO!

[@AskSebby]

In the current environment, it's not hard to trigger the fraud / bust-out red flags. I'm hearing about a lot more financial reviews recently (where Amex asks for your tax return to confirm your income).

[@patriciahallyburton772]

Is it good to have a low percentage utilization on your credit card?

[@AskSebby]

Yes. You also don't want to carry a balance (it doesn't make sense paying any interest).

[@mylajones9781]

What is utilization?

[@kevinmartinez-os6bq]

I recently received a targeted offer by AMEX for a business gold card with a 5,000 min spend and 75k points bonus. Would it be worth it to take it?I already hit my min spend on my Amex platinum card which gave me 60k. I would be happy to able to combine them and have a potential 150k in points

[@oivas2010]

Hi thank you for your videos. Do store cards get counted in the total of age of credit history with other credit cards I own?

[@mehdish3]

Hey seby, are lounge passes individual ? Or can I bring my partner or and children?

[@MightiestArm]

Can I apply for a credit card if I work full time with Uber. Because they'll ask me how much I make per year

[@thenewlife.pt2724]

How much should I ask for a credit limit increase? My capital one is 2 years old and I'm still at $500 should I ask for 2k or maybe just $500 more to have $1k in credit HELPPPP!!!

[@kbrown6819]

If you apply for credit cards every 2 to 4 months, how does that effect your inquiries to the new card issuer when applying for their card?

[@AskSebby]

You'll have more inquiries. Different issuers have different rules related to inquiries. For example, Citi has a 6/6 rule: blog.asksebby.com/rules-to-know-for-citi-credit-card-applications-a15f81254e88