Wells Fargo Credit Limit Increase: Rules and Eligibility

For cardholders looking to finance a major purchase or improve credit utilization, insufficient credit limits can prevent them from reaching their goals. Fortunately, most credit card issuers allow users to request a higher line of credit on their cards, which instantly reduces credit usage and increases payment flexibility. By strategically taking advantage of a high line of credit, you can even improve your credit score.

And with Wells Fargo, the process of requesting a higher credit limit is very simple.

Read on to learn more about how to request a credit limit increase from Wells Fargo.

Who is eligible for a loan increase?

To improve your eligibility for a line of credit increase, you should always keep two things in mind:

• The amount of time your account has been open
• Your payment history

This is because your credit limit represents a level of risk for the card issuer. In order to increase your purchasing power, the issuer must first trust your ability to repay your balance in a timely and responsible manner. If you have a negative payment history or haven’t had a card for long enough to show your habits, Wells Fargo is less likely to approve a higher limit.

With that in mind, a good rule of thumb is to keep your credit card open for at least six months. Wells Fargo doesn’t have a predetermined period of time when you must open your account in order to qualify for a credit limit increase, but six months is a good starting point for having enough positive history.

What should you do before asking for a raise?

Once you feel confident about your chances of getting a higher credit limit, there are a few more steps you need to take to make sure you’re ready to make the call. Most importantly, gather all the information you can before making a request.

First, you must keep in mind the number of loan increases. We recommend that you don’t ask too much at once, as it may seem like you’re planning to spend more than you can recoup.

Consider how much higher you need to be to either lower your credit utilization rate or pay off a large purchase over time. Requesting a 10 to 50 percent increase is usually a good starting point.

Also, if you have a balance and are only making minimum credit card payments, consider changing your strategy for a few months. If you can prove that you can pay off your debt in full, Wells Fargo will likely grant you more credit.

Finally, it’s a good idea to get your credit report and find out your credit score. This helps show your creditworthiness to card issuers, so it’s helpful to see how you view creditors before asking for more credit. You can get one free credit report per year from each of the three major credit bureaus at AnnualCreditReport.com. Wells Fargo also provides all credit card holders with their FICO scores free of charge in their online accounts.

How to request an increase in your credit limit

Once you have a plan for how many loans you want to receive and are ready to demonstrate why you qualify, you are ready to apply for an increase. Wells Fargo has two different ways to get a higher line of credit.

Automatic credit limit increase

In some cases, Wells Fargo may automatically increase your credit limit without your request. If you demonstrate a good payment history and are a reliable customer, the issuer will award you more credit from time to time. There is no set timetable for this process and you must aim for it. However, you must monitor your account for this.

Call to customer support

If you wish to formally request a higher credit limit, the only way to do so is to call Customer Service at 1-800-642-4720. Ask to speak to a customer service rep about a larger line of credit and be prepared to make your case.

When you ask for a higher credit limit, the representative will likely ask you why you need more credit. You must mention any changes in your situation that require a raise, including a major purchase you wish to pay for, a recent increase in your income, or a balance you hope to transfer. Be sure to mention your positive payment history and the fact that you were a good customer.

Just be careful not to ask for an increase in your credit limit just to incur additional expenses. Your reasoning should make it clear that you are ready to return what you borrow.

Before completing your increase, a Wells Fargo representative will likely review your credit. In some cases, Wells Fargo will only go through a soft process to approve a higher line of credit. However, in other cases it may be necessary to increase your credit drastically, which will lower your score by a few points. Because of this, you should always ask before they submit a request.

What to do if you are refused an increase in the credit limit?

It is always possible that you ask for a higher credit limit and Wells Fargo rejects your request. If so, don’t worry. You have nothing to lose if your credit line increases are denied, especially if they didn’t have a big impact on your credit report. Simply start by asking the Wells Fargo representative why they didn’t approve you and work to improve your chances the next time you apply.

• Work on building your credit score by paying your bills on time and in full whenever possible.
• Use your card more often – Wells Fargo may be less inclined to increase the limit on a card you don’t use.
• Pay off balances on other credit cards to reduce your overall credit usage.
• Update your Wells Fargo information, especially if your income has increased.
• Wait at least six months before asking again – too many requests close together can signal a desperate attempt to get more credit.
• Consider asking to transfer credit from one card to another instead of asking for an overall increase in credit. Because it does not require you to provide additional credit, Wells Fargo may approve your request.
• Consider applying for a new credit card. Sometimes applying for a new card is the best way to increase your overall credit limit as it can increase the total amount of credit available to you.

Pros and Cons of a Higher Credit Limit

Wondering if you should even ask for an increase in your credit limit? Here is a brief overview of some of the pros and cons of increasing the limit.

pros

• May reduce credit utilization and improve credit score
• Gives you more flexibility to finance large purchases over time
• Increases the purchasing power of the card and allows you to earn more rewards.
• Provides more wiggle room and time to pay for purchases in case of emergencies

Minuses

• The request usually results in a hard pull, briefly lowering your score.
• May tempt you to overspending, causing you to carry more leftovers than before

bottom line

Circumstances change and you may need a higher credit limit than your card currently offers. Whether you are more creditworthy than the day you applied, or simply have an upcoming purchase to finance, applying for a higher credit limit can be a win-win situation for your payment flexibility and credit score. However, you must be aware of the risks that the increase brings with it.

The good news: Wells Fargo makes this process easy. By taking just a few minutes to call customer service and state your case, you can make sure your card works the best for you.

Emily Sherman is a senior editor at CreditCards.com, specializing in news and product recommendations. She is also a founding member of To Her Credit, a two-week series of women’s financial advice for women. When she’s not writing about credit cards, she’s spending her points and miles planning her next big vacation.