You can request a Wells Fargo Credit Limit increase over the phone or by applying for a new credit card. Consumers with a credit score above 670 and with a credit utilization below 30% have the best chance of getting approved. Cardholders should wait six months after establishing the card before requesting an increase.
Some issuers restrict how high your credit limit can be on certain credit cards. If you’ve reached the highest limit available for that card, you may need to apply for a new credit card instead. New cards can raise your FICOⓇ score by increasing your total available credit. An increase in the credit you have available decreases your credit utilization ratio, provided you don’t incur any more debt.
How to Increase Your Credit Limit with Wells Fargo
You can request a Wells Fargo credit limit increase over the phone through customer service. Unlike with most banks, Wells Fargo cardholders aren’t able to apply for an increase online or on the mobile app. This provider periodically reviews credit card activity, credit standing, and payment history to determine credit eligibility. Wells Fargo may then choose to automatically increase your credit limit based on this information.
The two ways to increase your credit limit with Wells Fargo are:
1. Request a Wells Fargo Credit Limit Increase by Phone
Wells Fargo cardholders can request a credit limit increase by calling customer support at 1-800-642-4720. Wells Fargo will require personal information, including your total income and monthly rent or mortgage payments. The issuer may also make a hard credit inquiry. A hard credit check can decrease your score slightly, but Wells Fargo will inform you if it intends to check your credit.
2. Apply for a Wells Fargo Credit Card with A Higher Limit
For consumers looking to increase their credit limit, applying for a new Wells Fargo credit card could be a better option. Credit card providers will typically raise your existing card limit between 10% and 25%. Credit limits are determined by your provider, so an increase may be smaller than you expected. Consumers can take advantage of introductory benefits on a new credit card, like no-interest periods that can be used for balance transfers.
Apply For a High Credit Limit Business Credit Card
Cardholders looking to increase their credit limits can apply for a high limit business credit card. High limit credit cards are best for business owners that need a limit of $15,000 to $100,000 for spending. Cardholders can pay for large expenses without maxing out their Wells Fargo credit card. You could get approved for a hefty credit limit that can help boost your credit score.
Business owners also have the option of applying for a business charge card. Charge cards typically allow businesses to pay for expenses with no limit. Charge cards require that you pay the entire balance each month, so there’s no interest. Owners that need business expenses without worrying about limits, should consider a business charge card.
Tips for Qualifying for a Wells Fargo Credit Limit Increase
In order to qualify for a Wells Fargo credit limit increase, there are a few things that every consumer should be aware of. Before you apply, you should know your credit utilization ratio as well as your credit score. Understanding your credit profile before requesting an increase will put you in the best position to get approved.
The tips on how to increase your credit limit with Wells Fargo are:
Determine Your Bank’s Policies on Credit Limit Increases
When considering how to increase your credit limit with Wells Fargo, it’s a best practice to know your bank’s requirements. Most credit card issuers require that you have your credit card established for at least six months before requesting a change in your credit line. Although you can apply for an increase with Wells Fargo before that, you should wait six months before making the first request to avoid premature denials.
Once you’ve applied for a credit increase, you won’t be able to request another for at least six more months. In some cases, the type of credit card you have may be causing an issue. Some credit cards have a top credit line that can’t be breached. If you’ve reached the maximum credit limit for that card type, Wells Fargo isn’t able to increase your limit further. The best course of action in this case is to apply for a new credit card.
Reduce Your Credit Utilization
Your credit utilization ratio is the amount of credit being used compared to the credit available to you. Banks use this number to measure your ability to take on new debt. It also accounts for a large chunk of your credit score, and should be monitored regularly. To improve your chances for an increased credit limit, you should aim for a credit utilization that’s 30% or less. You can reduce your credit utilization in a few ways, including making additional monthly payments and setting account alerts.
You can reduce your credit utilization in the following ways:
- Make additional monthly payments to pay down debt
- Keep old credit cards open
- Set account alerts
- Make your payments on time
Having credit cards that are older than 12 months can show stability and strengthen your credit score. Consumers should also make multiple monthly payments to pay off debt quicker. Creditors use your credit activity to estimate if you can manage new credit responsibly. Cardholders should aim to keep their credit cards active while making payments on time to lower their debt and increase their credit score.
Don’t Ask for Too Much
If you’re thinking of requesting a large increase, you should reconsider. Experts recommend not asking for too much, but instead opt to increase your limit a little at a time. Banks are more likely to give you an increase of around 10% to 25% of your current limit. Denied applicants will need to wait six months in order to apply again.
Wells Fargo may offer you a modest amount at first. If you choose to decline the initial offer and ask for a higher limit, it may appear that you need the extra money. Asking for a larger amount could make your provider see you as too eager and they may deny your request. Creditors are more reluctant to extend additional credit when it appears that you’re desperate or are shopping around for financing.
Know Your Credit Score Range
Creditors like Wells Fargo review information from your credit profile like your debt-to-income ratio and your payment history. Your credit score is one of the most important factors when applying for new credit increase. Personal credit scores range from 300 to 850, and anything below 580 is considered poor or risky credit. Knowing your credit score can help you determine if it’s the right time to apply or if you should work to build your credit score first.
Businesses should also know their credit scores before applying for more credit. Owners should keep track of both their personal and business credit scores. Wells Fargo will possibly pull a hard credit check when you request a credit limit increase. FICOⓇ’s business LiquidCredit scores range from zero to as high as 300.
How to Check Personal and Business Credit Scores
Consumers are able to check their credit scores through multiple vendors, including their bank. Most providers offer credit monitoring services for free, although not all banks offer FICOⓇ scores. Wells Fargo provides free FICOⓇ scores and monitoring services. People can also check their reports for free via the Federal Trade Commision website. It’s considered a soft pull when you make an inquiry on your own credit report. Soft inquiries don’t negatively affect you.
Businesses can keep up with their business scores through multiple vendors as well. Unlike with personal credit, hard inquiries on business reports don’t have a negative impact on your business credit. This is because anybody who has your business name and address is allowed to pull a business credit report. Hard credit inquiries on businesses is very common and therefore not damaging. Owners can pull their business credit scores for free through Nav.
When to Ask for A Wells Fargo Credit Limit Increase
The best time to apply for a Wells Fargo credit limit increase is when you have the best chance of approval. Cardholders are more likely to get approved when their debt-to-income ratio is below 40%. If your income increases, or your monthly payments decrease, then it may be the ideal time to request one
You should request a credit limit increase with Wells Fargo when:
- You’ve had your credit account six months or more: Most credit card issuers require that you wait at least six months before requesting a higher limit. Banks use this to determine how well you manage your credit card.
- You’ve had an increase in income: Wells Fargo will ask you about your monthly income when determining your increase eligibility. If your income has risen, it shows you make be able to take on more credit.
- Your rent or mortgage payments decrease: If your rent or mortgage payments have dropped significantly, you may qualify for a credit limit increase. More income available reduces your debt-to-income ratio.
- Your credit score increases: When your credit score rises, it shows that you have been managing your debt responsibly. A higher score looks good to banks like Wells Fargo, and the issuer will be more willing to increase your limit with a higher score.
If your goal for getting a higher credit limit is to increase your credit score, you shouldn’t use too much of your new credit limit. Using the new credit limit you were granted, could combat the positive effects that an increase provides. Your credit utilization ratio accounts for almost one-third of your credit score. When you keep your available credit amounts high compared to the credit you’ve used, your overall credit score will benefit.
When Business Owners Should Ask Wells Fargo to Increase Credit Limits
Business owners looking to increase their credit limits should apply at the most ideal time to get approved. When a business shows growth and there’s a need for new expenses, businesses can take this time to evaluate whether a credit limit increase is right for them.
The best time for businesses to apply for a Wells Fargo credit limit increase is when:
- There’s a growth in inventory: A growth in inventory may be a sign that more credit for expenses is needed.
- There’s increased revenue: Like with personal credit, businesses that have more income will increase their debt-to-income ratio, which improves your chances of approval.
- You’ve been in business for a while: A business that’s well established is more likely to be accepted for an increase in credit.
- Credit scores have increased: A rise in your credit score signals to creditors that your business is doing well and that you can handle the additional credit responsibility.
Business owners will need to prove they can take on more debt responsibly. Using the majority of your available credit will only reduce your credit utilization ratio and make it harder to get credit later. The right time to apply is when your credit profile shows that you are managing your current debt well and are ready to take on more.
What To Do If You’re Denied a Wells Fargo Credit Limit Increase
Sometimes consumers apply for an increase and aren’t approved. In this case, consumers can do a few things to make sure they are better prepared next time. Cardholders will receive a letter in the mail stating the reason for denial, typically within seven to 10 business days. Cardholders should review this letter and contact Wells Fargo with any questions.
Some actions you can take if your credit limit increase request is denied are:
- Review your denial letter: Wells Fargo, like all providers, will send you a letter in the mail stating the reason for denial. Read the letter to understand the reason you weren’t approved and take appropriate action.
- Check your credit report for errors: If your denial reason doesn’t make sense, or you feel it isn’t correct, you should review your credit report immediately. Errors on your report can indicate a mistake that needs to be corrected or even fraud. Report any errors you see to the credit bureaus.
- Pay down your debt: Creditors evaluate your debt-to-income ratio when you apply for credit limit increases. If it’s higher than 40%, it may be the reason you were denied. Pay down your debt to show creditors that you’re prepared to manage the credit limit increase next time.
- Apply for a new credit card: If you started your current Wells Fargo card with a low score and built your profile over time, you may find it difficult to get approved for an increase on that card. You may get approved for a new card with a larger credit line. You can shop and compare new credit cards in our credit card marketplace.
After being denied, cardholders should give themselves enough time to change their circumstances before applying again. You may need to review your credit report to understand what caused the issue. Paying down your debt, and improving your credit score can work wonders for cardholders looking to increase their available credit next time.
How a Wells Fargo Credit Limit Increase Impacts Credit Scores
Wells Fargo may make a hard inquiry into your report, which can reduce your credit score, but having more credit available can make up for it. There are multiple reasons to apply for a credit limit increase, but if your main goal is to raise your score, you should consider your usage. Using the available credit after getting an increase, can drop your score even more than a hard inquiry.
Personal Credit Score
Wells Fargo may make a hard credit check in order to review your credit limit increase request. A hard credit check can have a significant impact on your credit score, dropping it as much as five points each time. This inquiry will also stay on your credit report for two years. If you’re approved for a credit limit increase, the additional credit will raise your score as long as you don’t take on any more debt. Your new available credit can offset the negative effects of a hard inquiry.
Business Credit Score
Businesses can also benefit from a credit limit increase. With additional available credit, your credit utilization ratio with drop, increasing your credit score. Unlike with personal credit, business credit scores aren’t negatively impacted by a hard pull. This is because anyone with your business name and address is able to pull a business credit report. Provided you don’t use the additional credit, your score will rise.
Frequently Asked Questions (FAQs) About a Wells Fargo Credit Limit Increase
We covered a lot of steps on how to increase credit limits with Wells Fargo. We address the questions that are most commonly asked in this section. You can share any other questions you have in our Fit Small Business forum and one of our experts will respond.
The most frequently asked questions on how to increase your credit card limit with Wells Fargo are:
How do I request a credit limit increase with Wells Fargo?
You can apply for a Wells Fargo credit limit increase over the phone. Cardholders can call customer support at 1-800-642-4720. Be prepared to provide your personal information like income and monthly mortgage/rent payments. You’ll have a decision within minutes.
How long do you have to wait for a credit limit increase?
Although you can apply anytime, it’s recommended that you request a Wells Fargo credit limit increase at least six months or more after opening your credit card. Wells Fargo will give you the decision after you apply. After that, you may need to wait another six months before requesting a new one.
Is asking for a credit limit increase a hard inquiry?
When requesting a credit limit increase, your provider may make a hard inquiry on your credit report. Banks use your credit profile to determine your creditworthiness. Some providers will make a soft inquiry which doesn’t impact your credit score. Your provider will inform you if they require a hard credit check to complete your request.
Request a Wells Fargo credit limit increase by phone and receive a decision within minutes. Like other banks, Wells Fargo determines your eligibility for an increase by reviewing your credit profile. When your debt-to-income ratio is below 40% and your credit utilization score is above 30%, you have a better chance of getting approved.
For cardholders that need more available credit than an increase can provide, you should get a new credit card. You aren’t limited to Wells Fargo cards and can possibly get approved with a different card issuer easier. You can shop and compare credit cards in our credit marketplace.