In continuation of our multi-part blog series about how and why to request a credit limit increase, today’s installment will detail the steps necessary to increase your limit when you own a Capital One credit card like Quicksilver, Venture, or Spark.
It’s important to understand that each credit card company may have different requirements in place that they use in order to consider a credit limit request. Before sharing what criteria Capital One uses to grant or deny a credit limit increase request, let’s discuss why you might want a credit limit increase in the first place.
Why Increase Your Capital One Credit Limit?
Capital One offers flexible credit cards for personal or business use that provide several benefits and perks from bonus rewards and Uber ride discounts to and cashback and 0% intro APR promotions. While the perks of using a Capital One credit card are nice, if you are spending near or close to your limit each month, your credit may be taking a negative hit. It’s important to make sure you are using credit cards to improve your credit and not because you need them in order to get by each month.
Keeping your utilization below 30% of your credit limit each month is the best way to use credit cards to build your credit. Plus, if you are spending less than 30% of your credit limit, it will be easier to pay off the balance in full in month so you can avoid paying high interest rates. Even if your card currently has 0% APR for a limited time, it’s best to get into the habit of paying off your balance in full each month because that promotion won’t last forever.
With that being said, a credit limit increase could actually help improve your credit score, just as long as you don’t inflate your spending. If you keep your spending at the exact same level after the credit limit increase, then your utilization will automatically drop. For example, you spent $300 a month on a Quicksilver card with a $1,000 limit – a 30% utilization. You requested an increase and now have a $2,000 limit, but continue to just spend $300 a month. Without doing anything differently, you’ve lowered your utilization to 15%, which could help improve your credit score.
What to Know When Considering a Capital One Credit Line Increase
Capital One allows users to request a credit line either online or by phone. Some accounts are not eligible to request a credit line increase and those include accounts that are less than three months old and accounts that have received a credit line increase or decrease within the last six months.
When you submit a credit line increase request, Capital One looks at a variety of factors like on-time payment history, average monthly payment amount, and your credit score. They will also look at what your current utilization rate. On the FAQ section of their website, Capital One states that it likes to see on-time payments and card holders who make substantially more than the minimum payment each month. If you are responsibly using your card and paying more than the minimum each month, this tells them that you can handle possible increased monthly payments if they offer you a credit increase.
What’s nice about this process is that it will not negatively affect your credit. When you submit a request to increase your credit limit, Capital One will use the information they normally receive from the credit bureaus each month so your credit report will not be pulled.
How to Request a Credit Limit Increase with Capital One
Requesting a credit limit increase is easy and only takes a few minutes. First, I’ll walk you through how to do it online, then I’ll explain how the phone option works. Start by logging into your account at www.capitalone.com/
Once you’ve logged in, click on Services.
Under Card Services next to Digital Serving, click on Request Credit Line Increase which is the second option from the bottom of that list.
Fill out the short form to the best of your ability, then click Submit Request. (If you are a small business owner, you’ll need to provide your annual total income in the income section)
In some cases, Capital One says they can approve credit limit increase requests immediately. If the case that they don’t, it’s very common and you will be taken to a confirmation page similar to the one shown below.
As stated on the confirmation page, Capital One will notify you with the outcome of your request in just 2-3 business days if you are signed up for a paperless account or within 10 business days if you receive paper statements.
If you prefer to request a credit line increase by phone, you can call 1-800-955-7070 and choose the ‘More Options’ prompt to get to the credit line increase request option.
If you are denied for a credit limit increase, Capital One allows you to apply again at any time, but they don’t guarantee that your request will be approved. It’s best to work on addressing the reason or reasons why you were declined. In addition to making payments on-time, and making more than the minimum payment each month, Capital One recommends that you keep your income and employment information up-to-date because that is what they use to regularly review your account and determine if you’re eligible for a credit limit increase.
If you are approved, your new credit line will be available immediately. Try to keep your spending habits the same and continue using your card wisely. If you have another Capital One credit card, you can follow the same process shown above to request a credit limit increase for that card as well.