Does Applying for a Credit Line Increase Impact Your Credit Score?

Credit Cards Guide

Thinking about requesting a credit line increase from your card issuer? Before you request a credit line increase, you should understand how it might affect your credit score.

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Key Points:

• Whether a failed credit line increase application hurts your credit score depends on whether your creditor uses a hard or soft inquiry.
• Before you apply for a credit limit increase, make sure you understand the possible implications.
• Your credit card issuer denies your application if it finds you unworthy of more credit.

Whether it impacts your credit score or not depends entirely on the actions your credit card issuer takes in response to your request.

When you request a credit line increase, your credit card issuer seeks to establish whether you are worthy of the extra credit. The issuer does so by reviewing your credit report, credit card usage, income records, etc.

The issuer can pull your credit report through a soft inquiry or a hard one.

If your credit card issuer resorts to a hard inquiry, it inflicts a mark on your credit report that stays on your record for two years. It may also hurt your credit score.

The effects of a single hard inquiry on your credit score are temporary and do not inflict significant damage. If you have recently made other hard inquiries and added another one to the tally, the damage will be more significant and lasting.

Racking up several hard inquiries over a short period tells credit bureaus that you can’t handle debt responsibly.