07-22-2013 08:39 PM
I'm sure many of you have already read of the FAQ on Cap 1's website but with all the recent posts about CLI request I thought I'd post this particular statement from Cap 1 stating what they consider when deciding whether or not to grant a CLI. I think it's good information to know before submitting an online request for CLI.
"When considering an account for a credit line increase, we may look at a variety of factors such as your account status and payment history, how much you use your existing credit line, and credit bureau information.
One of the factors we may look at is whether you have a history of making on-time payments and how much of your balance you typically repay each month. As an example, we generally don’t approve requests if there has been a late payment in the past six months. In addition, we typically only approve requests for credit line increases when a customer has a history of repaying a large proportion of their balance each month. We would like to be confident that you can make the increased payments that would be required if you used your increased credit line.
Another thing we may check is the information in your credit bureau report. Some things that may affect our decision are the amount of debt on your credit report, the number of requests for credit reported by the credit bureau, and your credit score.
We also may look at whether you use a large portion of your existing credit line. If you regularly use your card and make payments on time, it builds your account's payment history. If not, we may not have sufficient payment history to review."
I hope this info is helpful to someone.
07-22-2013 09:02 PM
I agree and totally understand. But some may not be aware of this because years ago, when I was younger, not using or rarely using your credit limit was actually how you were rewarded with a CLI. So just thought it might be good to remind some and inform others, what is being considered when granting credit/CLI
07-22-2013 09:06 PM - edited 07-22-2013 09:10 PM
CC product lines each have a profitability model built into each one. While the vendor may have a low interest card(s) and a higher interest rewards card(s), each product if offered with specific goals in mind for the lending company. This also governs to whom they will market each type of cc product. On some cards they will offer CLIs relatively freely while on others they don't offer them at all.
Case in point - I called CapOne on another matter and asked why it said on their website that they could not award me a CLI on a recent online application (it didn't even make it into their system, it was spit out) -- their CSR explained that the particular card I had did not permit CLIs at all and the reason I was given a high CL in the first place, it was that I was deemed a very low credit risk to begin with. They were reviewing their product offerings and said that they would review whether or not to offer CLIs for the card that I had. The card that was issued is only granted to users with excellent credit in the first place. Now you can take that explanation with a few grains of salt but it made reasonable sense to me. In any case, I had no need for any further credit and didn't press the issue.
Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.