Anonymous asked in Business & FinancePersonal Finance · 7 months ago

Why is my bank asking for references?

*Please read all to avoid irrelevant answers*

I'm curious as to if this is normal when asking to have a higher credit card limit. I simply said that I'd like to double it to around 8k-10k. They are having me fill out applications, getting all sorts of info, references asking for employer supervisors etc.

But here is the thing, I have excellent credit (well over 700), I've taken out SEVERAL loans (all different types, personal, title, etc) paid them all off on time and some early. They even financed me for a 15k vehicle loan. All this on top of already having the credit card to begin with (and it's one of their top of the line cards, too).

So, why is it necessary to go through all these hoops as if I have absolutely zero credit just to simply raise my card limit slightly? To be honest, I find it a bit insulting and a total waste of time. Isn't this initially what credit scores are for?

20 Answers

  • zipper
    Lv 6
    7 months ago

    Your lucky that they even talk to you!

  • 7 months ago

    My guess is that the existing credit limit was based on your income and debt at the time. What changed? Big increase in income? Just paid off your mortgage or student loans? They're just asking for a fresh documentation of your situation.

    Another approach would be that if you have another card with someone else, ask the other card. That's what we did, and the other company did what the first one would not. But our circumstances were different, in that we owned our home free and clear, had no debt of any kind, and had been paying our credit card in full every statement for years.

  • Anonymous
    7 months ago

    A slight increased of DOUBLING?

  • B
    Lv 7
    7 months ago

    because 700 is not a great reference, that's why. just do it.

    • 7 months agoReport

      Snowball fight

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  • 7 months ago

    Doubling credit limit is unusual. Basically, you're applying from scratch like a new account & need to document income, etc. If you are unhappy with that, you might look at applying for another credit card, e.g. one which offers an interest-free year - but watch their interest rates! A year interest-free is nice, but pay it off & cancel it before the 12 months are up if the interest rate will be 25-30%.

    Some banks will send good customers offers to increase their credit limit & ask for application, proof of income, etc. Then a couple of months later with no response/request to increase, they increase the credit limit $2000 or so anyway without ever even applying for the increase!

    Do you have some specific need at this time for a credit increase (e.g. the fridge died)? Look for other credit offer. Are you running a balance fairly close to your existing limit & not halved your outstanding? Bad sign to a banker.

  • 7 months ago

    The hoops are not necessary. They are burying you in paperwork instead of laughing in your face for requesting the increased credit limit they already know they won't be approving.

  • 7 months ago

    If you want you could try to simply apply somewhere else and see if they'll give you a better card without the extra effort. Otherwise get writing - this is what they require.

  • 7 months ago

    Because it is a bank.

  • Anonymous
    7 months ago

    Did you recently have/change to a new loan officer? If so, they will treat you like a new customer rather than just approve you. Also, if it's been longer than a year since you last applied for any type of loan, it is possible that they may just need to update your information. In your scenario, because it's with your bank, yes they "should" have just approved you. Because you have already applied, you should just follow through otherwise it will have been a waste of your credit score application.

  • 7 months ago

    Apply for an additional, different, card.

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