BAM! Discover IT sockdrawered!

[Revelate]

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@youngandcreditwrthy wrote:
Okay people...
FACT:
Utilization(credit used/credit limit) does affect your score....
So theoretically, if I want to keep util at 10% with a $4k limit card, I can only let $400 report on my statement, unless I want to go through the hassle of paying prior to statement date.
I'd rather have a higher limit that allows me to charge $1000+ comfortably, without having to worry about a FICO drop due to util "reported"
So spare me the "low credit limits don't hurt your FICO"
When looked at on the above basis, they CAN and DO!

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The statement was that limits themselves have no impact on one's FICO score.  This is absolutely true.

Your response was all about convenience, stress, and opportunity cost: namely, larger limits result in your not having to micromanage your reported balances to the same degree.  I agree wholeheartedly that this is a benefit, but it is not the same as the mathematics underpinning the model which is a straight (aggregate reported balance/aggregate credit limits) calculation.  If one manages their reported balances, the limits themselves are irrelevant.

I do think that chasing CLI's is worthwhile for a number of reasons including the convenience factor: I'm quite open about having wrapped my arms around Amex, and opened a Wally card too, pretty much soley to boost my limits north of 5K eventually (well, and the Amex rewards structure doesn't hurt), but I was doing just fine on my old limits too for managing my FICO score.

[navigatethis12]

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@Revelate wrote:

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@youngandcreditwrthy wrote:
Okay people...
FACT:
Utilization(credit used/credit limit) does affect your score....
So theoretically, if I want to keep util at 10% with a $4k limit card, I can only let $400 report on my statement, unless I want to go through the hassle of paying prior to statement date.
I'd rather have a higher limit that allows me to charge $1000+ comfortably, without having to worry about a FICO drop due to util "reported"
So spare me the "low credit limits don't hurt your FICO"
When looked at on the above basis, they CAN and DO!

---

The statement was that limits themselves have no impact on one's FICO score.  This is absolutely true.

Your response was all about convenience, stress, and opportunity cost: namely, larger limits result in your not having to micromanage your reported balances to the same degree.  I agree wholeheartedly that this is a benefit, but it is not the same as the mathematics underpinning the model which is a straight (aggregate reported balance/aggregate credit limits) calculation.  If one manages their reported balances, the limits themselves are irrelevant.

I do think that chasing CLI's is worthwhile for a number of reasons including the convenience factor: I'm quite open about having wrapped my arms around Amex, and opened a Wally card too, pretty much soley to boost my limits north of 5K eventually (well, and the Amex rewards structure doesn't hurt), but I was doing just fine on my old limits too for managing my FICO score.

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Just what I was going to say. I really don't think balances showing are that big of a deal for someone with more history anyway. My mom does not pay before statement closes and has no problem getting approved for new cards when her balances may be a little high for one month. I have also had a decent size balance report before and didn't have a problem getting a nice credit limit increase.

I don't see why you would use Discover for more than the $1500 alotted for bonus spending and that is only 32%, which is not that big of a balance. It is only on one card, so I doubt your score(which is not as important as people may think) will drop that much. You have other cardss that are better than the Discover, so suggest you use those.

[HiLine]

I feel that the OP's decision to put the Discover IT into the sock drawer has more to do with the fact that the bonus category this quarter is not lucrative to him. As a reward chaser, he is unlikely to put regular spending on this card no matter what the credit limit might be. 

[migliogiorni]

Like others have said, obtaining more credit does not effect ones scores.  In the end it's the percentage of available credit you have available that matters.  Your score really does not matter unless your applying for new credit and you already have high limits with GE that have helped give you ease of mind when you leave balances on cards.  Their are other cards other than GE that give better CLI's than Discover, maybe concentrate on those.  I personally would love to have a 4k limit with Discover.  But I know i'd rather work on my freedom limit cause i'm more inclined to get a 4k limit with Chase faster and eventually obtain my goal card CSP!!

[youngandcreditwrthy]

Well, I'm certainly thankful for it tbh!
Many other lenders practice clis with sps , including Amex. I just do not like acquiring more hard pulls than necessary.
I will only be using this card for the cashback categories... If it's the right category, I will use IT for those expenditures during those time periods....I am sort of a "reward chaser" haha who isn't?? Lol
But Amex gets the majority of my spend because their overall reward category is best for me, and the credit limit is currently sufficient without denting my util!
I just really want to have the best credit possible...

This card is serving it's purpose :-)

[Thorin]

Why would they do a triple hard pull instead of just one?

Or do you mean one pull at each bureau?

[Revelate]

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@Thorin wrote:

Why would they do a triple hard pull instead of just one?

Or do you mean one pull at each bureau?

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I'm not sure of the original post as I haven't read the full thread (mea culpa) but generally "triple pull" refers to one pull of each bureau as you suggest.

[youngandcreditwrthy]

Yeah, it was one pull per CRA...
Kind of how Amex occassionally "triple pulls"

[youngandcreditwrthy]

How do I even change a thread title?:-/