Advice on requesting limit increase

[mbell1510]

I've had the AMEX QF Ultimate card since the end of February with a $3k limit (I requested this) as I also have a basic CBA card with a $6.5k limit that was my previously main card. I'm finding that since I put everything on AMEX, I'm running awfully close to my limit each month. I know I can make multiple payments throughout the month to solve this, but I'd love the peace of mind that a higher limit brings.

I've seen conflicting information, but does AMEX do a hard inquiry on your credit file, or do they use their own formula/ soft inquiry? Obviously I don't want to get knocked back, so do you think I should look to lower my CBA limit first before increasing my AMEX? I'm only putting $100 per month through CBA, so it is an overkill to have a huge limit on the card, but I'm hesitant to cut the limit too much before upping my AMEX in case I find myself short.

Any tips or advice on how to proceed would be great. Also what is the general rule of thumb with requesting a limit increase? 40 of the current limit%? I've got just under a $70k salary, a 780 Equifax credit score and always pay off my cards in fall if that helps with anything.

 

[Daver6]

I can't comment specifically on how Amex assess. However, lowing the limit on the other card would certainly help. Other things a credit provider is going to consider is whether you have other debt facilities or recurring expenses, eg home loan, car repayments etc.

 

[Dr Bob]

You should get an idea online. Log on to Amex - Account (card) Management - select Manage your account limit & you should get a Min to Max scale.

 

[Quattro]

You should get an idea online. Log on to Amex - Account (card) Management - select Manage your account limit & you should get a Min to Max scale.

Do this OP. It gives you an update immediately. I think the last time I did it, if it gets auto approved it came up as a check on my credit score. It didn't affect it though. Nothing ever happened when it says "unable to approve".

TBH, if you are using it more and more, you've got nothing to lose.

 

[mbell1510]

This all sounds great. Is around 60 days after using the card too early to request an increase do you think?

 

[Quattro]

This all sounds great. Is around 60 days after using the card too early to request an increase do you think?

60 days is the only thing working against you. But in saying that if I were in your shoes I'd request 5k.

 

[HMcM]

The only issue you may have is that it's a new card but I wouldn't foresee you having any issues. You've a decent enough credit score and income to substantiate the credit limit raise. Amex seems to be very generous with limit increases. I'm on a base salary about 10k less than yours and amex had no issue with giving a >10k credit limit.

The last time I got a credit limit increase with Amex I tripled it after having the card for 6-8 months, had no issue. With the card being new I'd advise to probably be more conservative.

 

[mbell1510]

Update. Took a punt put in an increase for $5000 and got knocked back with a "we're unable to process your request at this time, please contact us for more information". Looks like it is too soon. Might drop back the limit on my other card too.

 

[mbell1510]

Called American Express and they said you generally have to wait 3-6 months, but I'm going to speak to their credit team tomorrow and post back about what they say for everyone's future benefit. The lady from AMEX also reckons they do not check your credit file when applying for a limit increase as it is accessed internally.

 

[Quattro]

Thanks for posting the update.

Yes, they'll do a credit check on you I'd say when considering.

 

[WeeWillyWonka]

Called American Express and they said you generally have to wait 3-6 months

Their default position is that once you apply for a credit increase (auto or manual), you have to wait 6 months before another one.

 

[mbell1510]

Just spoke to American Express this morning and got the run around as you can't speak to the credit team. The general person I spoke to confirmed I got knocked back because you have to wait 3 months if you are a new member.

She said you generally have to wait another 6 months after applying for an increase, but said i could try again next month, which makes little sense. Unlike the person I spoke to yesterday, she said my rejected application will go on my credit file, so who knows what to believe. Will have to check out that though.

 

[Spongbob]

So perhaps an obvious question is: why did you ask for the $3k credit limit when you applied for the card only a few months ago?
Particularly when (I guess) you intended make this your main card.

 

[benjy]

Credit limit increases for Amex do not pull a hard enquiry, I know, I've done many times, approves and declines. Amex does a soft pull on your account every month.

You need to wait 6 months of holding the card until you have a chance of getting a credit limit increase, then wait every 6 months after being approved.

I've either exceeded my credit exposure or Amex don't want to give office credit increases during the pandemic, I'm at 8 months since last credit limit increase, amex not budging.

 

[theblank]

I've seen conflicting information, but does AMEX do a hard inquiry on your credit file,

If they did (and I agree that they dont normally do it) its such a trivial and meanless thing. To put in context you have wasted more time writing and thinking about it than what its worth.

if you need a limit increase ask for on (at the appropriate time).