A higher credit limit can be a fantastic tool for managing your finances, offering greater purchasing power, improving your credit utilization ratio (which can boost your credit score!), and providing a safety net for emergencies. If you're a Wells Fargo credit card holder and considering extending your credit limit, you've come to the right place. This comprehensive guide will walk you through the process step-by-step, providing you with all the information you need
Ready to take control of your credit? Let's dive in!
Step 1: Assess Your Eligibility and Prepare for Success
Before you even think about picking up the phone, it's crucial to understand what Wells Fargo looks for when considering a credit limit increase. Think of this as laying the groundwork for a successful application.
Sub-heading: Review Your Current Financial Standing
- Payment History: This is arguably the most important factor. Wells Fargo wants to see a consistent history of on-time payments on your current Wells Fargo credit card. If you've missed payments or have a history of late payments, address those first. It's best to have at least six months of spotless payment history.
- Credit Score: A strong credit score signals to Wells Fargo that you're a responsible borrower. While Wells Fargo doesn't specify an exact score, generally, a FICO® Score of 670 or higher is considered good. You can often check your FICO® Score for free through Wells Fargo Online via their "Credit Close-Up®" feature. Knowing your score beforehand will give you a good indication of your chances.
- Income: Has your income increased since you first applied for the card? A higher income demonstrates your ability to handle a larger credit limit. Be prepared to provide your current income information.
- Credit Utilization Ratio: This refers to the amount of credit you're using compared to your total available credit. Lenders prefer to see this ratio below 30%. For example, if you have a $5,000 limit and a $2,000 balance, your utilization is 40%. A lower utilization ratio indicates you're not over-reliant on credit. If your utilization is high, try to pay down some balances before requesting an increase.
- Time Since Last Increase/Application: If you've recently received a credit limit increase or applied for new credit, it might be beneficial to wait a few months. Excessive inquiries in a short period can sometimes be viewed negatively. Many sources suggest waiting at least six months between requests, or even longer if your last request was denied.
- Wells Fargo Account Activity: Have you been actively using your Wells Fargo card? While keeping your utilization low is good, completely dormant accounts might not signal a need for more credit. Show that you use the card responsibly for some purchases each month.
Sub-heading: Determine Your Desired Increase Amount
Don't just ask for "more." Have a specific amount in mind. While some people aim for a 10-25% increase, others with lower initial limits might request a 50% increase. Be realistic and consider what you genuinely need and can comfortably manage. Asking for an excessively high increase might raise a red flag.
Step 2: Initiate Your Credit Limit Increase Request
Unlike some other card issuers, Wells Fargo currently does not offer an online option for requesting a credit limit increase. The primary method is by phone.
Sub-heading: The Phone Call is Key
- Gather Your Information: Before you call, have your Wells Fargo credit card number readily available. You'll also need to be prepared to answer questions about your current income, employment status, and housing costs (rent or mortgage).
- Call the Dedicated Line: The most direct number to request a credit limit increase with Wells Fargo is 1-800-642-4720. You can also try the general banking customer service line at 1-800-869-3557.
- Be Polite and Prepared: When you connect with a representative, clearly state that you'd like to request a credit limit increase on your Wells Fargo credit card. They will verify your identity and likely ask the prepared questions about your financial situation.
- State Your Reason: Be ready to explain why you're requesting an increase. Valid reasons include:
- Increased income
- Upcoming large purchase (e.g., home renovation, travel)
- To improve your credit utilization ratio
- For emergencies or peace of mind
- Because you've been a loyal customer with a good payment history
- Ask About the Credit Pull: This is a crucial question. Inquire whether the request will result in a hard credit inquiry or a soft credit inquiry.
- Soft inquiries do not impact your credit score and are not visible to other lenders.
- Hard inquiries can temporarily lower your credit score by a few points (typically less than 10) and remain on your credit report for two years. While the impact is usually short-lived, it's good to be aware. Some users have reported Wells Fargo sometimes performs a soft pull for credit limit increases, while other times a hard pull might be necessary depending on the circumstances. Knowing this upfront will help you decide if you want to proceed.
Step 3: Understand the Decision and Next Steps
Once you've made your request, the Wells Fargo representative will review your account information and likely provide a decision during the call or inform you of the next steps.
Sub-heading: Instant Approval or Further Review
- Instant Approval: If your financial profile is strong and your request is reasonable, you might receive instant approval. Congratulations! The increased limit will typically be effective immediately.
- Under Review: In some cases, the representative may need to submit your request for further review by an underwriting team. They will inform you of the timeframe for a decision, which could range from a few hours to several business days.
- Denial: If your request is denied, the representative should provide you with a reason. By law, lenders are required to inform you why your application was unsuccessful. This information is invaluable for understanding what areas you need to improve for future requests. Common reasons for denial include:
- High credit utilization
- Recent missed or late payments
- Insufficient income
- Too many recent credit inquiries
- Not enough time since the last increase or new account opening
Sub-heading: What to Do After a Denial
If your credit limit increase request is denied, don't get discouraged! This is an opportunity to improve your financial habits.
- Review the Reason for Denial: Understand precisely why Wells Fargo denied your request. This will guide your next steps.
- Work on Improving Your Credit Score: Focus on paying all your bills on time, keeping your credit utilization low, and avoiding new credit applications for a while.
- Increase Your Income (if applicable): If income was a factor, continue working towards a higher income.
- Wait and Reapply: Once you've addressed the underlying issues, wait at least six months (or longer if advised) before reapplying.
Step 4: Maintain Responsible Credit Habits
Getting a higher credit limit is a privilege and comes with increased responsibility. To truly benefit and ensure future financial health, continued responsible use is paramount.
Sub-heading: How to Make the Most of Your Increased Limit
- Keep Your Utilization Low: Even with a higher limit, aim to keep your credit utilization below 30%. This is a significant factor in your credit score. A higher limit with the same spending automatically lowers your utilization, which can boost your score.
- Continue On-Time Payments: Consistently paying your bills on time, or even early, is the best way to maintain a good credit history.
- Avoid Overspending: A higher limit is not an invitation to spend more than you can afford to pay back. Stick to your budget.
- Monitor Your Credit: Regularly check your credit score and credit report for any inaccuracies or fraudulent activity.
10 Related FAQ Questions
How to check my Wells Fargo credit card eligibility for a credit limit increase?
While Wells Fargo doesn't list specific, publicly available eligibility criteria, you can assess your readiness by reviewing your payment history (on-time payments for at least 6 months), credit score (aim for good to excellent), income (has it increased?), and credit utilization (ideally below 30%).
How to request a Wells Fargo credit limit increase online?
Currently, Wells Fargo does not offer an online option to request a credit limit increase for their credit cards. You must call their customer service to make the request.
How to find the correct phone number to request a credit limit increase from Wells Fargo?
The most common and direct phone number for Wells Fargo credit limit increase requests is 1-800-642-4720. You can also try their general banking line at 1-800-869-3557.
How to know if Wells Fargo will do a hard inquiry for a credit limit increase?
During your phone call with the Wells Fargo representative, explicitly ask if the credit limit increase request will result in a hard credit inquiry or a soft credit inquiry. They should be able to tell you.
How to increase the credit limit on a Wells Fargo secured credit card?
For a Wells Fargo secured credit card, the credit limit is typically tied to your security deposit. To increase the limit, you may need to increase your deposit. Contact Wells Fargo customer service for specific details on how to do this for your secured card.
How to improve my chances of getting a Wells Fargo credit limit increase?
To improve your chances, focus on maintaining a spotless payment history, keeping your credit utilization low, ensuring your income information is up-to-date, and having a good credit score. It also helps to be an active, responsible user of your Wells Fargo card.
How to find out the status of my Wells Fargo credit limit increase request?
If your request wasn't instantly approved on the phone, the representative should have provided you with an estimated timeframe for a decision. If you don't hear back, you can call the same customer service number to inquire about the status.
How to avoid a negative impact on my credit score when requesting a Wells Fargo credit limit increase?
The main way to avoid a negative impact is if Wells Fargo performs a soft inquiry. Always ask the representative if it will be a hard or soft inquiry. If it's a hard inquiry and you're concerned, you can consider waiting or deciding if the potential temporary dip is worth the increased limit.
How to know if my Wells Fargo credit limit will be increased automatically?
Wells Fargo, like many issuers, may offer automatic credit limit increases to customers with a history of responsible use. However, they don't publicly share specific criteria or frequency for these automatic increases. The best way to get an increase is to proactively request it.
How to handle a denial for a Wells Fargo credit limit increase?
If denied, ask Wells Fargo for the specific reason(s). Use this feedback to address any issues like high utilization, late payments, or low income. Focus on improving these areas and wait at least six months before considering another request.
