I think it simply depends on your history with them.

I also would like to believe that if there was an inquiry done on your credit report, then it would be a soft inquiry. But, for instance, they did a hard inquiry... Usually, if you have a couple of hard inquiries over the past 6 mos. it wont negatively affect your credit rating yet. With regards to your question on the effect of the increase in your credit limit, it will depend on the utilization of your credit, if your balance is less that 50% of your cl, this should keep it from negatively affecting your credit rating. but if say you continue to 'spend' as much as you do now, then your utilization percentage is lower, now that your credit limit is higher.

A hard inquiry is only supposed to be done in conjunction with an application for credit.... ie... overdraft, line of credit, credit card, loan. Some banks (PC financial) will do a hard inquiry on you decide what daily limit they will "permit" you to use of your money, but many (most?) don't do hard inquiries for that unless you're looking for a "release amount" (daily limits are how much of your cleared or direct deposited funds you may spend and/or withdraw in a daily period... typically so high most people don't reach it whereas "release amounts" are funds immediately released for use when you deposit into a bank machine and are often considered a form of "credit" as they are trusting that you aren't lying about what you are depositing)

Soft inquiries are done by people you have accounts with (typically credit, although some banks... TD for example... will run soft inquires even if you have no credit accounts with them) to monitor whether to continue to extend credit, offer new credit products, etc. Searching your own bureau information or monitoring services are also soft inquiries.

Angella,
I agree.. I'm not sure I've heard a definition of when a company does a hard inquiry vs soft inquiry...

As indicated, if you've already got a credit agreement open, the company will do soft inquiries on you to see how you're doing.

They will not have done a hard inquiry. If they did an inquiry at all it would be soft, but often, depending on the card, they simply base it on your history with them.

gillian25,
Great news.. That's always the thing... It's nice to be acknowledged for having better credit... and then you think to yourself, hmmm.... now they're trying to sell me something :)

More than likely it's a soft inquiry which won't affect your credit score.

If it was a hard inquiry, it would only dock 6 points or so from your credit score.

To my pleasant surprise my Mastercard increased my limit. I did not request this but they sent a really nice letter stating that I have "earned" this.. (I know they just want me to spend more money).
Anyways my question is... would a hard inquiry or soft inquiry have taken place on my credit report? and How would an increase in Credit effect my FICO score?