01-06-2010 09:05 PM - last edited on 01-06-2010 09:26 PM by Lel
Hopefully some of you credit gurus can point me in the right direction.
I was approved a few days ago for a Chase Freedom card with a CL of $2000, which will be inconvenient for my intended usage ($1000+ per month, paid in full every month) due to FICO penalties for high % utilization.
In the current economic climate, is it insane to ask for a CLI on a card I was just approved for? Should I expect automatic failure? Would it be helpful to mention fairly large liquid assets in checking/savings (~$50K - unusual for someone with my relatively low HHI)?
If I request a CLI, is Chase likely to require another hard pull (they pulled Equifax 2-3 days ago)?
I also have a very old Chase Visa (recently converted to Slate) that I want to keep open. If a CLI isn't in the offing, I thought I might try to get them to convert this old account to a Chase Freedom (assuming the tradeline will be reported the same way to Equifax etc.) and transfer the $2000 CL from the new account to the old account, closing out the new account. Is this something that Chase might be amenable to in these times? Might it be better, from the standpoint of credit scores, to go ahead and keep both accounts open (I have very few CC at the moment)?
Thanks in advanced for any help you can give me.
01-07-2010 04:56 AM
Hi, Svipdag! Welcome to the forums!
If the appearance of high utilization on the new card is your only concern, you can charge away (up to your limit) and pay the bill in full before the statement closing date (NOT the payment due date). Access your account online at Chase, your account info will show you when the billing period closes. Pay the bill online on or before that date, and if you always pay in full every month, your balance on that card will always report to the CRA's as "$0".
Hope this helps!
01-07-2010 05:09 AM
Chase will report your "statement balance" to the bureaus. They don't do "this reporting whenever the wind changes direction" like some other banks do (like of BofA). As long as you keep your "statement balance" down, your UTIL will be in good shape...at least with Chase. I have 3 CCs with them and they are pretty easy to manage. Have only received one CLI with them though but what I have with them works fine for me at the moment.
01-07-2010 05:49 AM
I had the same frustration when I opened a new AmEx last spring. We just paid online a couple of times per month. By having a good history with them, we got a nice credit line increase this fall.
You may need a temporary work around for the low limit right now, but the limit should grow in time. I can't speak to the product changes you mention. Give Chase a call and ask for their suggestions.
01-07-2010 10:55 PM
Thanks for the replies!
I already do occasionally pay twice a month to keep reported utilization low on my older Chase account. It's kind of annoying. I guess I was hoping that proving income (not so high, but still reasonable) and substantial liquid assets in addition to my very low debt burden (typically <$1k reported at any given time) might convince them to be a little less stingy with the limit. Maybe that's a forlorn hope in these times:-) I keep hearing horror stories of people having accounts closed and limits reduced whenever they rocked the boat by asking for CLIs or consolidations etc. :-(
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. 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.