I requested a credit limit increase from one of my current creditors. I currently have a balance, but have on time payments for 2 years. In response to my CL request, the creditor pulled a hard inquiry and denied my request. Is this legal? Since I currently have credit with this creditor and simply requested a credit limit, do they automatically have permission to pull a hard inquiry? Should they not have conducted an AR inquiry?
Perfectly legal and pretty much normal for most credit card companies. When asking for a CL increase, it's important to say you only want to apply for a CL increase if it does not require a hard inquiry.
