Rejected for a $500 credit card increase, then pre-approved 3 months later for a $2,000 increase with same card. What?

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Aug 20th, 2017 9:08 am

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Aug 17th, 2017 9:41 pm

JohnNL [OP]: Newbie; May 15, 2015; 20 posts; 1 upvote; Halifax, NS

Aug 17th, 2017 9:41 pm

Rejected for a $500 credit card increase, then pre-approved 3 months later for a $2,000 increase with same card. What?

In May I applied to increase the limit on my TD visa from $1,000 to $1,500 and was rejected. I had the card for 3 years before applying for an increase and never missed a payment. Today I received a pre-approved offer for an increase from $1,000 to $3,000. Nothing changed insofar as my credit score/utilisation goes between being rejected in May and pre-approved today.

How does this make sense?

Furthermore, despite pre-approval I have to wait 5-7 business days for the limit to change and this is contingent on the approval of the pre-approved credit increase? This is versus 1-2 business days it would take if I applied online or by phone?

4 replies

Aug 17th, 2017 10:40 pm

CouponBaron: Deal Addict; Jan 18, 2015; 1047 posts; 738 upvotes; Cornwall, ON

Aug 17th, 2017 10:40 pm

Sounds screwy... Has anything unrelated happened on your credit report though? Like a derog dropping off, or some other account's utilization changing? Loans paid off? If not, I can only speculate maybe they're loosening their lending policy suddenly and it has nothing to do with you specifically.

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Aug 17th, 2017 11:14 pm

JohnNL [OP]: Newbie; May 15, 2015; 20 posts; 1 upvote; Halifax, NS

Aug 17th, 2017 11:14 pm

CouponBaron wrote: ↑ Sounds screwy... Has anything unrelated happened on your credit report though? Like a derog dropping off, or some other account's utilization changing? Loans paid off? If not, I can only speculate maybe they're loosening their lending policy suddenly and it has nothing to do with you specifically.

Only thing negative on my credit report is utilisation, which hasn't changed at all since May. Perfect payment history for 6 years.

I'm honestly half expecting the pre-approved credit increase to not go through. I thought increases were generally instant, not something that has to be reviewed over a 5-7 day period. (But maybe that was just because I approved it at an atm instead of online or via phone)

Aug 20th, 2017 9:08 am

BeanFinn: Member; May 7, 2017; 347 posts; 164 upvotes

Aug 20th, 2017 9:08 am

TD is your answer

Aug 22nd, 2017 2:21 am

Eleventeen: Deal Addict; Jul 20, 2017; 1153 posts; 1361 upvotes; Kitchener

Aug 22nd, 2017 2:21 am

Think it's normal, I've similar experiences with td. Had a card over 10 years, never asked for cc limit ups, but was offered lots so my limit was a 25k. Didn't get one for years so I asked another few thousand. Got the decline letter a week later. Couple months later they offer me a massive increase, and to switch to their aero plan infinite, with the sign up bonus and fyf intact.

Lesson learned: Doesn't hurt to ask, and if declined, . They will later do a longer account review and maybe make you a nice offer.

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