I have been a customer since I was 16/17 now I’m 22 and have had a credit card with them for 2 years. My household income is over 100k with the only debt being my car (14k). I’ve never missed a payment and I’ve maxed my credit limit 4 times (2k limit) in one day and paid it off same day within the last 6 months and I use it like a checking account never having a balance on it on statement date. I also have a credit score of 726. I don’t know why they have denied me a limit increase 5 times now.
>I’ve maxed my credit limit 4 times (2k limit) in one day and paid it off same day
> I use it like a checking account never having a balance on it on statement date.
This is why they’ve denied your credit limit increases. You need to let the statement post in order for them to recognize you are maxing the card out. You’re cycling your credit and it’s actually hurting you in this instance.
Make the charges to your card like you normally would, staying under your limit. Let that sit on your card until the statement date, then pay it in full. A few rounds of that and they are significantly more likely to increase your limit. This will not hurt your credit score; it will likely increase it further and it shows responsible spending.
If you keep paying as soon as it hits your account, they could actually ding you for that and close your card for card cycling. It’s a way people abuse their card to get more credit than what was intended (generally speaking; not suggesting you are doing that, but they could view it that way).
@UmberLeighton
This is the first time I’ve heard of card cycling. What are the actual benefits of doing that? I hate banks and how you have to be in debt for them to give you the option to go more in debt.
@Pierce
Let’s say someone has a $5k purchase but their card only covers $2k.
They could do a partial payment of $2k, max their card out, pay it immediately, then do another partial payment of $2k, pay it immediately, then do another payment of $1k (or let that one sit).
Effectively meaning the bank is giving them $5k worth of credit, when they only intended on giving out $2k. The bank views this as a violation of ToS and a unnecessary risk to them financially.
Your credit line is basically the bank saying “We feel comfortable giving you this much credit. We don’t think you could screw us over with this amount based on your history.” But when you manipulate that through credit cycling, the bank frowns upon it because it overextends what they’re comfortable giving you.
In your case, it’s innocent and not intentional, but it likely explains why you’re having issues getting a CLI. If the statement always posts as $0, they have no reason to think you need any more credit.
@UmberLeighton
Dang okay. Thanks for the information! I’ll start racking it up and not paying it till the next billing cycle then.
Pierce said:
@UmberLeighton
Dang okay. Thanks for the information! I’ll start racking it up and not paying it till the next billing cycle then.
Cycling is a common money laundering tactic. It often raises a red flag to the bank.
You don’t need to wait until the next billing cycle to pay your statement. Just let the statement post, then pay it in full before the due date. If you do that a couple times while using most of your credit limit, WF will be much more likely to give you a CLI.
It’s Wells Fargo. That’s what they do.
fabian said:
It’s Wells Fargo. That’s what they do.
was going to type this word for word.
fabian said:
It’s Wells Fargo. That’s what they do.
I already have to deal with their 30% interest BS on my credit card. I wish they would care a little bit.
fabian said:
It’s Wells Fargo. That’s what they do.
I already have to deal with their 30% interest BS on my credit card. I wish they would care a little bit.
The interest rate is irrelevant if you pay off the card in full after the statement posts. You won’t have to pay the interest if you always pay the statement balance in full. 30% is pretty typical with cards these days.
Everyone shared some good insight and suggestions already.
I’d add that issuers tend to like seeing tons of activity. The more you use it, the more they’ll feel like they should incentivize you with a bigger line of credit.
How are you using the card? Are you charging up to the limit every month? If you’re only putting less than 50% of your limit, they may not think you need it. Also, it’s WF. They’re as bad as Cap 1.
Kase said:
How are you using the card? Are you charging up to the limit every month? If you’re only putting less than 50% of your limit, they may not think you need it. Also, it’s WF. They’re as bad as Cap 1.
I stay under 30% every month. And surprisingly Cap 1 gives me random credit increases without me asking. Just today they gave me another 500$ limit increase without me asking and I hardly use their card.
Did they not send you mail with the reason you were denied those 5 times?
Pip said:
Did they not send you mail with the reason you were denied those 5 times?
It’s because I don’t use the card enough is what the guy on the phone said.
Pip said:
Did they not send you mail with the reason you were denied those 5 times?
It’s because I don’t use the card enough is what the guy on the phone said.
If they gave you the reason, then, use the card more, and pay the statement balance after it posts.
@Pip
That’s exactly what I’ve been doing for awhile because that’s the reason they denied me every time.
Pierce said:
@Pip
That’s exactly what I’ve been doing for awhile because that’s the reason they denied me every time.
No, you have been maxing out the card and paying it off the same day. You need to wait until the statement is posted and then pay it off.
@Pip
Dang okay. Thank you for the information!
Cycling to banks means you’re not managing your budget, not that you can’t afford it, but they only want 1 payment a month, statement balance in full. I totally see why you want a higher limit, but if Wells won’t do it or at least not fast enough (most banks only allow once every 6 months) I’d apply for another credit card.