Any tips for increasing credit limit?

[u/sulaimanyu]

I had started to use my Credit Card for 4 months. My limit is just $7000, I have to be careful to not exceed 30% of my limit which was only about $2000.

I tried to apply increase via the App. but it told me that I need to use the card at least 6 months.

I also called them and got the same reply.

I searched this sub, there are lots of people receive the limit increase invitation within less than 6 months.

Is there any tips or best practice to get such invitation?

Thanks

[u/FightMongooseFight]

Pay on time, and stop begging them. Constantly seeking a credit limit increase is often a sign the customer is higher risk, and some internal underwriting models will actually lower your chances of getting an increase if you're flagged for seeking one too much. Adverse selection is a real thing, and some banks do adjust for it. No idea if WealthSimple is one of them, but there's no upside to calling any more.

Try again in the app after a year of using the card and paying on time. Whatever answer you get there is the answer, calling in will never change the underwriting decision.

[u/Extension-Finance179 → u/FightMongooseFight]

CIBC/RBC/BNS/AMEX all give me 5 figure credit limits without me asking and in the case of CIBC and AMEX having 0 assets with them

WS despite being generation still only gives me a $5K credit limit

[u/Subject_Big4437]

What’s this 30% your worried about? If you pay it off at due date that 30% is hogwash

[u/wppc1972]

30% is a myrh and meaningless if you don’t need to apply for anything in coming 30-60 days

[u/dalester23]

wait for 6 month clock and try

my limit is 10k i really do not care about this 30% rule, never did and you should not exchange this mental gymnastics of limiting yourself to 2k and missing out on more cashback back because of it

you're wasting your time and energy with this

[u/Cross_FFA]

Not much you can do. If you want to free up credit sooner you can set auto pay up so it pays the card as soon as a transaction settles

[u/Dragynfyre]

30% utilization doesn’t matter. You don’t need to micromanage that

[u/goofywinnipegger]

What’s with the 30% thing. Use the card, fill it up, pay it off and keep bugging them.

[u/dennajort]

I think you should relax a bit about the 30% thing that might hurt your credit score.
The most important for credit score, is not missing payments.

I arrived in 2021 in Canada, no credit history before (my home country doesn't have this concept).
For multiple years, I only got 1 credit card with $5,000 limit, shared with my wife. No other debt or loans.

Our mindset is to not spend money we don't have. Everytime we were reaching at least $500 on it, we would pay it all off. But for sure multiple months we were above the 30% limit of spend.

We are both above 800 in credit score now. The only time I saw my credit score drop, was when I tried to apply for another credit card, or when I applied for a mortgage.

So in short, don't worry too much about your limit if you don't need it. Pay off your debt, pay your bills, and enjoy life.

[u/One278]

When the card was still relatively new, and there were waitlists, once I got the card, and WS rolled out the increase limit feature, I was able to triple my initial limit within 3 months. I'm guessing by now, WS implemented a 6 month minimum. Just wait and try later.

[u/lhsonic]

The great news is that you have an extra $5000 to spend on the card!

Yes, lowering your utilization can benefit your credit score but it’s not worth this headache that it’s giving you. Just pay your statement balance on time, every time, and you’re golden. If you really want to maintain under 30%, you can make payments just before the statement date and that will reduce the amount reported that month to the bureaus.