I applied for a credit line increase from Capital One a few weeks ago. A few days ago I got a letter indicated that the increase request was rejected. The two reasons stated were:
- Primary cardholder current accounts not used enough
- Primary cardholder insufficient experience with high lines of credit on Capital One Accounts
I have two cards with Capital One, both with roughly the same limit. That limit is about 10% of my (household) annual income--about 5% each. I have one other major card, an American Express, which adds roughly another 2.5% of my annual income.
I use one of the cards for everything I possibly can, as it has the better rewards. I pay it off in full each billing cycle. I pay off the other cards in full each month, but I only use them for specific purchases (e.g. Costco only accepts Amex, some old subscriptions still charge to my other Capital One card).
My Equifax credit score is 813 (per the letter).
Needless to say, I was surprised to get this rejection letter. I have excellent credit, no revolving debt and a low (I think) ratio of credit limit to income. I also use my credit card a lot, regardless of the first bullet point above.
Does the company dislike customers who don't pay any interest or fees? Or is 12.5% of income a fairly standard credit limit across all cards?