Credit line increase process

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curious1
 
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Credit line increase process

Postby curious1 » Wed Apr 30, 2014 4:18 pm

I'm very very new to credit cards. I've had one through my credit union for the past two years, it's the only one I have. I've always paid it on time and never charged more than a couple hundred to it.

The other day I called about increasing my limit. What is the process for that? Do they just pull information from my bank account and credit report? Or do they call landlords and/or utility companies about bills?

Like I said I'm a newb just trying to get a handle on the whole process. Thanks for anyone with any info!


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Terry
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Postby Terry » Wed Apr 30, 2014 9:18 pm

curious1 wrote:I'm very very new to credit cards. I've had one through my credit union for the past two years, it's the only one I have. I've always paid it on time and never charged more than a couple hundred to it.

The other day I called about increasing my limit. What is the process for that? Do they just pull information from my bank account and credit report? Or do they call landlords and/or utility companies about bills?

Like I said I'm a newb just trying to get a handle on the whole process. Thanks for anyone with any info!


The process involves a credit check and looking at how you have handled your asset and liability accounts with the credit union.
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otter
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Postby otter » Wed Apr 30, 2014 9:45 pm

Welcome to the forum!

It really depends on who you are asking. Some do it without asking, some make you ask. Some do a hard pull, some soft pull. They are almost never intrusive enough to ask for landlord records, bills, etc; but by law, I believe they have to ask your income (although they can go by the initial app income within the first twelve months I've heard).

Don't be afraid to ask them how they do it... you want to know whether it is going to be a hard pull or soft pull before hand (because if it's a hard pull, you want to make sure your chances are very good). Don't be afraid to ask them any questions you may have. Bankers (and especially credit unions) like to educate their customers and like customers who ask good questions... so ask away!
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WildBill
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Postby WildBill » Wed Apr 30, 2014 10:11 pm

When you request they do a soft pull and look number of accounts, scores, etc. if they need further info they will request your permission for a hard pull. If I were in your position, I would not let them hard pull. If you're in good standing and have a good credit history I would apply for another card. However, without knowing your current CL or your scores it's difficult to give precise advice.

flan
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Postby flan » Wed Apr 30, 2014 11:23 pm

otter wrote: but by law, I believe they have to ask your income (although they can go by the initial app income within the first twelve months I've heard).


They're required to consider your ability to repay. (Believe it or not, that was not requirement of extending credit before the 2008 banking crisis.) The simplest way of doing that is asking your income. They can, if they care to, use other means, like, for instance, your history of deposits in other accounts they hold. Typically they also ask for housing cost, because that's the biggest chunk of most people's budgets, and it's relatively fixed.

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Postby Dman316 » Wed May 28, 2014 3:45 pm

flan wrote:They're required to consider your ability to repay. (Believe it or not, that was not requirement of extending credit before the 2008 banking crisis.) The simplest way of doing that is asking your income. They can, if they care to, use other means, like, for instance, your history of deposits in other accounts they hold. Typically they also ask for housing cost, because that's the biggest chunk of most people's budgets, and it's relatively fixed.


Agreed with above post.
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