How to Increase Your Credit Limit With Capital One

A credit limit increase (CLI) gives you more spending power and the ability to maintain or lower your credit utilization ratio. While Capital One might choose to increase your credit limit because you’ve been a responsible cardholder, it also accepts requests for increases.

Unlike several issuers who carry out hard credit pulls when cardholders request credit limit increases, Capital One makes its decision based on a soft pull. This way, there’s no adverse effect on your credit score.

If Capital One denies your request, go through the letter it sends and look for the reason. By fixing the problem/s at hand, there’s an increased possibility of success when you submit your request again. Another option is to apply for a new card.

• How to Increase Your Credit Limit
• What Are the Benefits of Having a Higher Credit Limit?
• When Should I Request a Credit Limit Increase?
• Reminders Before Requesting a Credit Increase
• What to Do if the Request Is Denied

Capital One may increase your credit limit in two ways. One is when it chooses to do so of its own accord, and the other is when you submit a request. However, requesting a credit limit increase (CLI) does not guarantee a successful outcome. Like most other card providers, Capital One lets you initiate the process of getting a higher credit limit online and over the phone. What helps is you don't have to worry about a hard credit pull when you request a CLI through Capital One.

You need to sign in to the Capital One online banking platform to request a credit limit increase. When you ask for a higher credit limit, you'll need to provide details about your employment status, annual income and monthly rent/mortgage payments.

If you wish to get a higher credit limit for any of Capital One's Spark business cards, you'll need to provide information about the preceding year's total business revenue and your total annual income.

Chase considers these factors, and possibly others, to arrive at a decision. In some cases, Chase informs cardholders of its decision immediately, although it might take up to 30 days.

You may call the number on the back of your Capital One credit card to request a credit limit increase. Alternatively, personal cardholders may call 1-800-227-4825, and small business cardholders may call 1-800-867-0904.

While calling to request a CLI might seem inconvenient, it gives you the ability to reason out your case or make an appeal. Much like an online CLI request, you might get an answer straightaway, or you may have to wait for up to 30 days.

When you make the call, it's important to show why you deserve a higher credit limit instead of implying that you need it. You can do this by highlighting that you've been a responsible user of credit, that you have good or excellent creditworthiness or that you've recently received a promotion or a raise. You'll also need to answer questions about your income, employment status and rent/mortgage payments. Remember that you're interacting with a fellow human being, so try to remain well-mannered throughout the call and don't ruffle any feathers.

Capital One may increase your credit limit without asking by looking at the age of your credit card account and how well you've managed your credit. If your account qualifies for an automatic increase, Capital One gives you the maximum limit it feels you will manage responsibly.

If you don't want the increase, you may decline it by calling 1-800-227-4825. You also can ask Capital One not to consider your account for an automatic increase for the next five years.

You may expect a Capital One credit line increase to work well for you only if you use the additional credit responsibly. The benefits typically come in the form of higher spending capacity and a lower credit utilization ratio.

>> More: The Practical Guide to Improving Credit Fast

According to Capital One, if you received your new credit card “within the past several months,” it is not eligible for a credit line increase. This is also the case if you’ve recently received a credit limit increase. By most accounts, you may qualify for an increase after the first six months.

You may consider requesting a credit line increase if your credit score has improved significantly since receiving your card. This is also the case if your income has changed for the better. If you don’t have good or excellent creditworthiness, you may want to improve your credit score before requesting a credit line increase. Bear in mind that Capital One may decrease your card’s limit if it finds a suitable reason.

Keep in mind that an increase in credit limit brings with it the potential to hurt your finances. This is the case if you’re not responsible with your credit and rack up more debt than you can repay comfortably. Remember that credit cards tend to come with high interest rates that apply to balances you carry over from one billing cycle to the next.

>> More: What Is a Credit Limit and What Factors Determine It?

Capital One cardholders who wish to get credit limit increases need to meet a few requirements. Paying attention to factors such as your credit score and how much of an increase you should aim for can improve your chances of approval.

You need to meet multiple requirements to be eligible for a credit limit increase through Capital One.

• Your account has been open for several (typically more than six) months.
• You have not received a credit limit increase in the last six months.
• Your account has not been past due in the last several months.
• Your monthly payments exceed the monthly minimum due substantially.
• You use the card often enough.

However, even if you meet all its documented conditions, there is no guarantee that your request will be approved. In addition, it is not possible to increase the credit limit of a Capital One secured credit card.

>> More: How Long Does It Take For A Secured Credit Card To Become Unsecured?

The highest Capital One credit limit you may qualify for depends on your income, creditworthiness and other factors. When asking Capital One for a higher credit limit, requesting an increase of up to 25% is the ideal way to go. In addition, Capital One might approve your request but offer a lower-than-desired limit. If you aim for too high a limit, Capital One may deny your request.

Expect Capital One to look at your credit score through a soft credit pull when you request a credit limit increase. You may use the CreditWise platform from Capital One to access your VantageScore 3.0 score from TransUnion. Several other websites also let you view your credit score scores from Experian and Equifax for free.

There is a greater likelihood that Capital One will approve your credit limit increase request if you have excellent credit. People with good credit scores also stand a fair chance, provided they use their Capital One cards responsibly. If you have poor or average creditworthiness, work on improving your credit score before requesting an increase in your card’s credit limit.

Ensure you make all your payments on time as it has a bearing on your payment history, which, in turn, affects your credit score. Paying off your balances as quickly as possible helps you maintain a low credit utilization ratio, which also has a positive effect on your credit score. Spacing out your applications for new credit by at least six months is the way to go, as each new hard inquiry has a slightly negative impact on your credit score.

>> More: Does Requesting a Credit Limit Increase Hurt Your Credit Score?

Find out your card’s current credit limit before requesting an increase, as this gives you the means to calculate your credit utilization ratio for the card in question. For example, if your card’s limit is $5,000, of which you’ve used $3,000, its credit utilization ratio is 60%. For Capital One to view your credit limit increase request favorably, this number should be 30% or lower. This requires that you bring your outstanding balance to below $1,500. The lower your credit utilization ratio, the better the chances that your request will be approved. Bear in mind that Capital One also looks at your overall credit utilization ratio.

Capital One may choose to reject your request for a variety of reasons. If this happens, it will inform you of its decision by sending a letter explaining why it denied your request. You may also call Capital One to ask for the reason and request reconsideration.

Capital One uses the reasons stated in the letter you receive to determine whether or not you qualify for a credit line increase. As a result, fixing these problems increases the possibility of approval in the future, although there’s no guarantee this will happen. The most common reasons Capital One may decline a credit limit increase request include:

• Your credit card account is not old enough.
• You’ve received a credit limit increase in the last six months.
• You’ve been past due on your account in the last several months.
• You make low monthly payments.
• You use your card infrequently.
• There’s a recent delinquency listed on your credit report.
• You have a low credit score.

Once you know the reason Capital One denied your credit limit increase request, you can take corrective measures to fix the problem/s. Then, you may consider asking Capital One again. Alternatively, you may think about applying for a new credit card, either through Capital One or a different card provider.

If you wish to free up some space on your existing Capital One card and don’t qualify for a credit limit increase, you may also want to consider transferring all or part of its balance to a balance transfer card. When done right, it might lead to savings in interest charges.

>>MORE: EVERYTHING YOU NEED TO KNOW ABOUT CAPITAL ONE BALANCE TRANSFERS

If you feel Capital One might have denied your request in error, you may ask the card issuer to give your request another look. Capital One's reconsideration process requires that you speak with a customer support representative over the phone. The Capital One contact number you may call is 1-800-227-4825 (1-800-CAPITAL). Existing cardholders may call collect from outside of the U.S. by dialing 1-804-934-2001.

You may consider applying for a new Capital One credit card if you haven't applied for one in the last six months and if you have just one personal Capital One card. This is because Capital One lets you use no more than two of its personal credit cards at a time.

Once you get a new Capital One card, you may expect your overall credit limit to increase and a lower credit utilization ratio. However, remember that applying for a new card results in a hard credit inquiry, which causes your credit score to drop by a few points in the short term.

If you wish to get Capital One's highest credit limit cards, you need excellent credit. Your income and a few other factors also play a role in the credit limit that Capital One assigns to your new card. Examples of high-limit credit cards from Capital One include the Venture Rewards Card, the Venture X Rewards Card, the Quicksilver Cash Rewards Card and the Spark Cash for Business Card.

The links in the table above will take you to one of our partner's sites, where you can compare and apply for a selected credit card.