Although Wells Fargo Secured Credit Card doesn’t offer credit limit increases without the need of an additional deposit, you can graduate to an unsecured credit card if you use your card responsibly. That way, you will receive your deposit back and you might also receive a higher credit limit overtime.
A secured credit card will increase your limit under certain conditions. You can add additional funds, up to $25,000 in some cases, to your security deposit to raise your credit limit. Also, if you make several consecutive timely payments, the issuer may increase your limit without an additional deposit.
When you have a secured credit card, you put up a security deposit to establish your credit limit. As secured cards are designed for people with less than good credit, the deposit also serves as collateral for the issuer should you default on the account. The amount of your deposit determines your credit limit, depending on creditworthiness. Some credit cards are only partly secured, depending on the specifics of an applicant’s credit. Capital One Platinum Secured Credit Card, for instance, offers a minimum credit limit of $200 in exchange for a $49, $99 or $200 minimum security deposit, depending on the specifics of an applicant’s credit.… read full answer
You’ll be refunded the deposit in full when you close your account in good standing. Any unpaid balance or fees owed will be deducted from your balance when you close the account.
How to increase your secured credit card limit
Increase the amount of security deposit
Contact customer service or log on to your secured card’s website to start the process. Provide your name, address, account number, date of birth, Social Security Number and any other information need to verify your account. Please note that some credit card issuers require that you make additional deposits, up to the maximum amount allowed, before the account opens.
Some issuers will evaluate your account and credit history after you make your first several payments on time and consider an increase in your credit limit without an additional deposit. Capital One Platinum Secured is one such example. The drawback is you have no control over how much you credit limit will be increased, if at all.
Also, you won’t know when the issuer will evaluate your account. The issuer will perform a soft inquiry on your credit report to determine if you’re eligible for a credit limit increase. A soft inquiry does not affect your credit score, nor does the issuer need your permission to generate the inquiry. Not all secured credit cards offer automatic credit limit increases, though. But your card may be eligible for graduation to an unsecured credit card. If you’ve kept up timely payments, and have had your secured card for more than 12 months, contact your issuer and see if you are eligible for graduation. If approved, you will receive a refund on your security card. And you may be eligible for automatic credit limit increases or request them yourself if you’ve used your card responsibly. If you are not eligible or graduation, you can always search elsewhere and apply for an unsecured that best fits your credit profile.
Keep in mind that a credit card application generally, results in a hard inquiry on your credit report. Hard inquiries can have a slight negative impact on your credit score, so if you’re teetering on the border of good credit, it might be best to wait a few months and apply after you’ve raised your credit score a few more points. Secured credit cards are a great way to build credit as long as you make payments on time and preferably in full. Also, try to keep you credit utilization below 30%.
There are two ways to increase your Capital One Platinum Secured credit limit: Depositing more money than required and consistently paying your monthly bill on time. The first option is available prior to account opening and the second after your account has been open for at least six months. I’ll walk you through both below.… read full answer
Increase Capital One Platinum Secured Credit Limit Options:
Over-deposit before getting your card
If you get approved, Capital One will require you to place a security deposit of $49, $99 or $200 to actually open your account. The deposit amount you’re assigned depends on your overall credit standing, but everyone starts with a $200 credit limit – unless you deposit more than is required, that is. Any amount you deposit above what’s required will boost your spending limit by the same amount. For example, if you’re required to place a $49 deposit and you put down $149, your credit limit will be $300 instead of $200.
Pay on time for 6+ months
After account opening, the only way to get a Capital One Platinum Secured credit limit increase is to pay on time for 6 months. If you do, Capital One will likely raise your credit limit during the 7th month. By how much, though, is completely up to them. If you pay on time but other aspects of your credit get worse, you might not get an increase.
It’s also possible that Capital One will eventually return your deposit and transition you to an unsecured credit card with a higher credit limit. But that depends on how financially responsible you are.
Different secured cards have different rules regarding security deposits and spending limit increases. You can usually increase your limit by depositing more money, often at any time. But you generally can’t just call and ask for more spending power without giving the credit card company something in return.
The only absolute chance you have to get yourself more credit is at the very start when you send in extra money on top of your deposit. Otherwise, you’ll have to speak with your actions by paying on time until Capital One raises the limit themselves.
It’s important to remember that $1,000 is the lowest credit limit you’ll start out with if you’re approved for an account. You could receive a higher limit. And the actual limit you’ll receive is based on your credit history, income, employment status, level of debt and more. Unfortunately, you won’t know how much your credit limit will be until you’re approved. Wells Fargo does not publicly disclose its maximum credit limits.
If you accept the initial Wells Fargo credit limit offer, you can request an increase in your credit limit after at least six months of timely payments. Also, after six months, Wells Fargo may review your account for an automatic increase. Eligibility is based on things such as payment history and your total amount of debt. But there’s no guarantee when, or if, an automatic increase will occur. An automatic increase uses a soft inquiry, which means your credit score is not affected.
Ultimately, if you’re not a Wells Fargo loyal customer, you can check our editors’ latest picks for the best high limit credit cards on the market to weigh your options.
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