Why was I denied a credit limit increase?

[Katy L]

I must have a really great credit score because I always pay my credit cards in full before the due dates. I've had 3 credit cards for about 5 years. The reason I was denied was because I just started a new job and have been there only for a month so far. They told me when I'm there for at least 3 months, call back. Don't you think that's stupid? Especially considering the fact that when I originally applied for that credit card I was unemployed.

[Jawa Nigerman]

They use your current total credit limit and your monthly income to make a decision. They may feel that you have too much credit already available. They want to make sure that your new income can cover the extra credit.I have a credit card from Chase with a pretty high credit limit (20K) which I have designated as an emergency card only. I recently tried to get a credit increase on my CapitalOne card which has a credit limit of $3k and was told that I already had too much credit available, from other sources, and that they would not be able to raise my limit. I guess they are afraid that if I max out my Chase card, I might start to fall behind on my payments to them.

[makeloans2]

Yeah, it seems unfair. Especially if they granted you the original card when you didn't even have a job. Same thing happened to my husband with his first credit card company. They would not give him an increase on his existing account, yet kept sending him mail saying he was "pre-approved" to open another account for a higher limit. One part of the company does not know what the other parts are doing. He cancelled this account and got one with a different credit card company, and now they have already increased his limit twice. It just depends on the company.

[ET29]

It does sounds stupid, but for the most part that's how credit works. They gave you a set amount they figured you could use and pay while you were unemployed. SO, now that you are asking more, its safer for you both for you to have job history, so that you can still pay for whatever you spend on the credit. (At least that's how they see it.)

[Josephine C]

Credit Card companies make their money on interest, if you pay in full before the due, you're not allowing them to make any money/ Plus you're really not establishing you're creditability. They want to know if you can be dependable over a period of time. You should make payments over a period of 6 to 8 months before you pay an account out. Also, you are entitled to a free report once a year or if you have been denied credit.