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    Stilt Team (Edited )

    Yes, Barclays like most other credit card issues does a hard pull for credit line increase (even if they offered you the increase themselves).

    Sometimes, you receive an offer in the mail stating you are eligible for an increase in credit limit, go online to get it. It is usually an offer based on your “soft pull” which may or may not contain the same level of information as a “hard pull”. They see that you’ve been doing well on credit or recently got a new credit card or some other form of credit and they want you to be their long term customer. So, they may offer this increase as an offer to keep using them for longer.

    This hard pull on your credit report may affect your credit score slightly - it goes down by a few points.

    The other thing that happens is that an inquiry is shown on your report. So, when you go the next lender to get a loan, they’ll see that you requested new credit/credit extension from a lender before. This may affect you negatively if you are looking for credit at a lot of places.

    In the medium to long term, your credit score will go up if you use the newly acquired line of credit effectively. It will help you improve your score even further and prove that you are a low credit risk person.

    There are 5 components of a credit score:

    1. Payment History - Based on a borrower’s payment history. This is the most important factor. Making regular payments on previous credit is very important. Try not to be late on your credit card and other credit payments.
    2. Credit Utilization - Make sure you don’t max out credit cards. It is important to maintain a good utilization rate (< 30% of your credit limits).
    3. Length of Credit History - It is important to show that you can consistently use credit responsibly that’s why you length of your oldest credit account is also matters.
    4. Credit Mix - Having different accounts and types credit accounts can show that you can manage different types of debts.
    5. New Credit - Low number of recent credit inquiries are important to show that you are not looking for credit all the time.

    About Stilt:

    Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

    We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible.

    Learn more about us on Wikipedia or visit us at https://www.stilt.co. If you have any questions, send us an email at team@stilt.co.

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