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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

[ Edited ]

     Don't cancel the card. There is no reason to cancel this one right now. The best way to maintain a high score is to have an average of 3 credit cards. One reason to leave this card open is so that you can increase the average age of your credit card accounts (AAoA). You should be aiming to maintain a few positive tradelines on your credit report. This can be one of them. You did not make a mistake by applying for this card. There are several reasons you can give to get your credit limit raised on this card over time even if your income is not increasing. Every month that you have this card you are demonstrating an ability to manage credit and that in itself justfies a credit limit increase. If it ain't broke, don't fix it. Your situation is a good one. Be happy.

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log
Established Member
dndandrea
Posts: 39
Registered: ‎03-01-2013
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

[ Edited ]

[quote]I'm not saying youre guaranteed approval...
And you said that you've had a Sam's Club card since 07, right?

You might try to get a cli on that account to say $1,000 then app for Freedom. Do you have any student loans reporting? Student loans can help you develop a decent FICO believe it or not.
They will see the inquiry, I'm sure...but one inquiry isn't going to sink you.

Imo, you've got a 70% chance of being approved for a Freedom....
Do you live at home? Or get any student loans? I know many members would advise against using household income, but assuming you're a responsible individual...I'd suggest asking your parents if you can put they're income on the app so you can build your credit... They don't have to cosign or provide their ssn's.

Idk if you've read or not but many people here app for 4-10 cards at a time... "App sprees" LOL![/quote]

 

Am I really allowed to do this? I live with my father who makes around $60,000-$70,000. Do you have to list that it's your parents/household income and not yours, thus making it look bad either way? Also, i just looked in my fifth third account online and the mastercard account has been added on now... 

 

Also, i'm not sure why using a credit card that I can only spend $100 with a month will boost my credit score if I already have a sams club card with $500 and the 2 loans i've paid off. I don't see any reason for it to go up much more than it already has. The only reason i'd see my limit increase is if my income changes, which won't be for another half of a decade. I'm not looking for a credit card with a high limit to spend money I don't have. I just want it to build credit with.

 

sorry i'm not sure how to quote posts on this forum.

 

 

So should I keep this credit card as well as apply for the chase freedom card? Should I apply for the chase freedom card now before the hard inquiry shows up on my credit score?

Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

    The hard inquiry will have a minor effect on your credit score and thus should have a minor effect on any decisions you make. There are several ways having an additional credit card can be positive for your credit score even if you are not charging anything or very little on it each month. In fact you should have a card or two which you are keeping at a zero balance or in your sock drawer and this one can serve that purpose. I don't see anything wrong with applying for a chase freedom right now for you. The most you have to lose is a hard inquiry.

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log
Senior Contributor
youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

That's the point though:
You want to have a lot of unused credit. Im not suggesting you get a higher limit to go crazy and spend on it...
But when I was in your position, I spent about $400 a month on whatever (eating out, gas).

Obviously, if you put that all on your new $300 card, youve maxxed it out, thus sinking your FICO.
Now if you charge $400 a month and pay in full on a $4000 cl, youre only "utilizing" 10% of your credit- much better for your FICO.
You can look up the CARD Act and income reporting legalities online.
However, a common interpretation is that you can put your individual income on an app or hhi "household income"; it's your choice. Do not do it if you do not feel comfy doing so.
As someone who is under 24 I presume, you technically are a dependent, at least according to the IRS and FAFSA- typically speaking.
I'm 23 btw :-)
I'd app for Freedom; I think you'll get approved. If you don't, then just stick with your $300 limit for 6 mos to a year. :-)
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Established Contributor
CreditCrusader
Posts: 799
Registered: ‎09-27-2011
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?


dndandrea wrote:

[quote]I'm not saying youre guaranteed approval...
And you said that you've had a Sam's Club card since 07, right?

You might try to get a cli on that account to say $1,000 then app for Freedom. Do you have any student loans reporting? Student loans can help you develop a decent FICO believe it or not.
They will see the inquiry, I'm sure...but one inquiry isn't going to sink you.

Imo, you've got a 70% chance of being approved for a Freedom....
Do you live at home? Or get any student loans? I know many members would advise against using household income, but assuming you're a responsible individual...I'd suggest asking your parents if you can put they're income on the app so you can build your credit... They don't have to cosign or provide their ssn's.

Idk if you've read or not but many people here app for 4-10 cards at a time... "App sprees" LOL![/quote]

 

Am I really allowed to do this? I live with my father who makes around $60,000-$70,000. Do you have to list that it's your parents/household income and not yours, thus making it look bad either way? Also, i just looked in my fifth third account online and the mastercard account has been added on now... 

 

Also, i'm not sure why using a credit card that I can only spend $100 with a month will boost my credit score if I already have a sams club card with $500 and the 2 loans i've paid off. I don't see any reason for it to go up much more than it already has. The only reason i'd see my limit increase is if my income changes, which won't be for another half of a decade. I'm not looking for a credit card with a high limit to spend money I don't have. I just want it to build credit with.

 

sorry i'm not sure how to quote posts on this forum.

 

 

So should I keep this credit card as well as apply for the chase freedom card? Should I apply for the chase freedom card now before the hard inquiry shows up on my credit score?


No..no..no...NOOOOOOOOOOOOOOOOOOOO.

 

Absolutely, positiviely, do NOT include your parents' income on your application unless you see specific verbiage allowing you rto do so. I can't imagine a set of circumstances allowing for this - perhaps for a student card or sorts.

 

A lender wants to know what YOUR ability to repay is. Credit cards aren't like financial aid in college - where until you reach a certain age, you are required to include your parents' income. We're talking, for the most part, about unsecured lines of credit. Fudging income to score higher limits on cards will bite you in the bum...mark my words...so I wouldn't even think about doing it.

 

I'm Spartacus!

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Valued Contributor
navigatethis12
Posts: 1,940
Registered: ‎01-24-2012
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

You really shouldn't be obsessing so much over the score. Unless you are planning to apply for a mortgage or automotive loan, it really is not a big deal to have maxed out cards. You aren't in the position right now to target cards with big sign up bonuses, so again, the score is not important right now. When I first got the Macys  card I just used it and paid it off. Sometimes it was near the limit of $300, and sometimes it wasn't. I didn't know what a credit score was and didn't care. I just knew to pay the balance when the statement came. I would say in six months or a year of responsible usage of the card, see if they will raise the credit limit on it.

Frequent Contributor
Laugh
Posts: 254
Registered: ‎12-29-2012
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

In all honesty, I say go for the freedom card and the discover card on the same day.

You really don't have anything to lose. A few hard inquiries is nothing when you have all the time in the world to build a better credit report.

I am a college student too. Annual income is 10000.

Instant approval of $500 for chase freedom. Cli after 3 months of usage to 2000. (Hard pull) Still 10k annual income.

Recon'd Discover more (PC'd to the IT within a month of approval). Got a higher apr than the prime rates. $1000 approval.
Cards: CSP 6k, Chase Freedom 6k, BCP 7.5k, Sallie Mae 8.9k, Discover 5k, BOFA Better Rewards 3.8k
Frequent Contributor
Laugh
Posts: 254
Registered: ‎12-29-2012
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

My discover card is not the student version
Cards: CSP 6k, Chase Freedom 6k, BCP 7.5k, Sallie Mae 8.9k, Discover 5k, BOFA Better Rewards 3.8k
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?


dndandrea wrote:

 

sorry i'm not sure how to quote posts on this forum.



Click "Reply" on the post you are replying to. When you go to type your post you'll see 3 tabs above the tool bar, "Rich Text", "HTML", and "Preview". Make sure you are in Rich Text. To the right of that in a blue box you'll see "Spell Check" and "Quote". Click Quote and the post you are replying to will appear  in the body of your post.

Frequent Contributor
codimom
Posts: 394
Registered: ‎09-08-2010
0

Re: $300 credit limit with 750+ credit score. What to do or when should I ask to raise it?

We all have to start somewhere... and this is your first card.  Its your stated income (in my opinion) that prompted the low limit.
So, use it wisely, keep that card for a year and you will get better offers!  Heck you may see some in 6 months, but you've already take the HP on this card, so won't do any good to close it now.  Once they see how you treat your first card, they may give you an increase.


Back in the garden!
App free since 23Oct2012 reset to 27Aug13 and reset again 4nov13



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