How do I increase my PenFed Power Cash Rewards credit limit?

You can get a PenFed credit card credit limit increase either online or by calling customer service at (800) 247-5626.

To raise your chances of being approved for a higher credit limit, pay your bill on time for at least six straight months, reduce your outstanding debt, and update the income PenFed has on file. They will be more likely to increase your credit limit if the revised income clearly shows that you can afford a higher limit.... read full answer

Impact of a PenFed Credit Card Credit Limit Increase on Your Credit Score

When you request a PenFed credit card credit limit increase, they will conduct a hard pull of your credit report, which will cause a short-term dip in your credit score. PenFed cannot do a hard pull without your permission, though.

On the other hand, there are times when you could be eligible for a credit limit increase without even requesting one. PenFed may offer an automatic credit limit increase if its regular reviews of your account show a history of on-time payments and low debt. An automatic credit limit increase involves a soft pull, which does not affect your credit score.

The PenFed credit card approval requirements include an good (700+) credit score and proof of a steady income. Applicants must also be at least 18 years old and either a U.S. citizen or permanent resident.

Those under 21 years old will need to offer evidence of independent income, too. PenFed credit union membership is also required in order to be approved for a credit card. The membership requirements and the application to join are available on the PenFed ... read full answerwebsite.

Other PenFed Credit Card Approval Requirements

Application requirements also include personal information such as your name, address and birthdate. Your Social Security Number (SSN) or Individual Tax ID Number (ITIN) and U.S. citizenship status are also required. In addition, PenFed will review your credit history, your income and any debts you have. Your bank account information, monthly mortgage/rent payment, and employment status will also be taken into account.

The reason why your credit limit went up is probably because you received an automatic credit limit increase from your credit card company. Creditors periodically review cardholders’ accounts and may consider increasing the credit limit as a reward for consistently paying the monthly bills on time and maintaining a low debt level.... read full answer

Another reason your issuer might increase your limit is if you updated your account profile with a higher income. The first account review for a potential automatic credit limit increase typically happens after your account has been open for about six months.

What you should know about automatic credit limit increases:

• An automatic increase uses a soft pull of your credit, which does not hurt your credit score. A soft pull can occur at any time and without your knowledge.
• Some issuers may give you the option to deny an automatic credit limit increase or request an even higher limit.
• If you initiate a request for a credit limit increase, a hard pull may occur, depending on the issuer. Hard pulls can only be done with your permission, and may cause a slight dip in your credit score.

An automatic credit limit increase could actually improve your credit score. A higher credit limit will lower your credit utilization. But that’s only if your spending doesn’t increase in proportion to the raised limit. The general rule is to maintain an overall utilization ratio of less than 30 percent. Lower utilization is better for your credit score.