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Credit Limit Increases

Valued Contributor

Re: Credit Limit Increases

I think that a CLI, any CLI no matter how big or small, is a reaffirmation or reassurance that we are doing something right. For someone just starting off in the credit world it may not be a big deal, but for someone coming back from tough times, a bk or a few COs, that first little "bump" means a whole lot.

   3/12 $3500     6/12 $1200      10/12 $1500   12/12 $3400    6/13 $12000      7/13 $5000      7/13 $2500       8/13 $2000    8/13 $6000

  | CSP (AU) $12,000 | Amex PRG (AU) | United $6,000 | OCCU $12,000 | Ink Bold | GM $3,200 | DCU $7500 | Luthansa $9000 | SPG $6,000 | Citi AA Executive $11,000 | Ink Plus $5,000                                                                         | EX 2/7 697 | EQ 10/27 721 | TU 12/15 719 |

Message 21 of 34
Regular Contributor

Re: Credit Limit Increases

Congrats on being young and smart with your credit. I was not and, because of this, rebuilding has been a bit of a struggle along the way. I will always gladly accept any CLI, requested or otherwise. Regardless of where you are on your credit journey, though, this forum will help you.
Starting Score: WMT TU (3/13) 644. EQ FICO (3/13) 595
Current Score: WMT TU (8/14): 666. FICO's: EQ (8/14): 661. EX (7/14) 658. TU (7/14) 697 | Goal Score: 700s

Roll over images for details.
Message 22 of 34
Regular Contributor

Re: Credit Limit Increases


Lilsnukems wrote:

A CLI is a CLI no matter how small.

 

I would not be happy about a HP for a smalll CLI, like $500. But if a company chose to give me that increase on their own, then I'd be more than happy.


I certainly am not happy! I went ahead and agreed to a HP this morning for my Discover iT card and I was only granted an increase of $500.00 which I thought was strange since all past increases were at least $400 with soft pulls. I went from $1900 to $2400. I probably should have waited since the last increase occurred in June (soft pull) and next month will be my 12th month with Discover. I am going to try and call their EO on Tuesday next week and try and recon limit since it was a hard pull.

 

As far as reports, I have no negatives but my AAoA is about 3 years. Highest credit card limit is 20k/20K (PSECU/PSL) but that is not showing yet since the increase occurred about a week ago. Majority of cards are between 5k and 10k. 

Starting Score 630 Score: Current FICO Scores: All above 725 (04/01/2015)
Sallie Mae World MC 9k; Chase Freedom 6.5k; CareCredit 13.2k; Amex BCP 21.8k;Amex PRG; BOA123 Visa Sig 20k; CapOne WMC 7.5K; CSP Visa Sig 2K; Citi Simp Visa 6.9k; CFCU Visa 17k; Discover IT 7K; JCP MC 8K; Macys Amex 7.5K/2k; PSECU Visa/PSL 20/20K; SamsClub MC 20k; Walmart 10k
Message 23 of 34
Frequent Contributor

Re: Credit Limit Increases

Congrats on your CLIs.

Use credit wisely.

CARDS.jpg

Message 24 of 34
Valued Contributor

Re: Credit Limit Increases


BlueTank wrote:

 

I'm curious how others view credit limit increases.

 

I don't need anymore credit but want to continue growing on my accounts.


 

My take on credit card limit increases is that they tend to taper off unless your income increases. I suppose it's an essential part of a credit card company's risk management policy to protect its business.

 


longtimelurker wrote:

 

One of the negatives about forums like this is it encourages (by side-effect) a wish for increased credit limits and getting new cards.


 

Well, yes. Smiley Wink

 


Higher CLs help in two main ways:

 

1) If you ever needed to use it (e.g. medical emergency, large purchase) a big CL on one card allows you to charge it easily

2) Utilization

 

The second reason is often cited, but if you are able to PIF on each card, that's not a great reason, as you can make utilization as small as you like.   If you do have to carry a balance, then increased CLs will help.


 

Good observation on utilization. It's often less within your reach to obtain limit increases than to reduce your balances.

I agree on large purchases too. Say a promotional convenience check at a low cost on a card with a high limit.

Message 25 of 34
Valued Contributor

Re: Credit Limit Increases


jennylocha wrote:

I think some comments on this forum definitely shows people's age. I thinks its fair to be mindful that not everyone can get large increases when they start out, be careful not to step on the positive steps that make them excited that they're on the right track. You're getting large credit increases with a $30,000 annual income? Do these creditors know that you only make this much everytime you request a CLI??

 

I started from the bottom myself and I am still learning as this is only my first full year of rebuilding following EVERYTHING on this site to the letter. So when I see people post comments that can easily be misconstrued as looking down on the very thing that got them to where they are, it makes me feel some way about that. If you're excited about your CLIs be excited, but don't bash small CLIs because you think that its beneath you please.

 

I'm not trying to be rude, just protective of where I started and what little things allowed me to know that I was on the right path to excellent credit! With that being said, CONGRATS on your CLI! Smiley Wink


I don't think it has as much to do with a person's age as it does with where they are financially. While this is often related to age, it isn't necessarily the case.

 

There's a huge difference between actively putting someone down for a small CLI, compared to saying that $X CLI isn't worth a HP for me (given my current circumstances and financial situation). The previous is rude while the latter is merely expressing one's opinion. From what I've seen the mods on this site are pretty quick to jump on noticably rude comments, but after reading this thread I can't say I see comments of this variety.

 

There are people saying that they personally woldn't bother with CLIs under a certain amount, but I don't see anything wrong with that. If that's what works for them and their circumstances, and it's not targeted at anyone specifically, then so be it. Anyone who takes offense at such comments is probably being overly-sensitive, and it sounds like they have a bit of a chip on their shoulder.

EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Message 26 of 34
New Contributor

Re: Credit Limit Increases

Simple: It's all relative.
EX 758 | EQ 721 | TU 768
Goal: 760+ across the board by May 2015
Gold Delta SkyMiles AMEX $32.8K | Citi Thank You Preferred $7K | Discover It $8.2K | Chase $3K + a few store cards
Message 27 of 34
Senior Contributor

Re: Credit Limit Increases

How they're viewed really comes down to where one is on the credit journey or long-term goals. Increased limits on Amex and two Citi cards will improve utilization %, raise score, and give me lower loan rates.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Message 28 of 34
Highlighted
Frequent Contributor

Re: Credit Limit Increases


Bluedog23 wrote:
OP, somewhere today, someone got a pair of new pants that cost 12.00 and they are extremely happy and grateful for those 12.00 pants. Maybe they had done without new pants or whatever for a very long time, or maybe they just got a job and are excited about buying their own pants as a result of their own HARD WORK. Could any of us look down on that excitement and say, " well they're only 12.00 pants. Why are you so excited? I've got pants that costs 20 times yours." Same thing with CLI 's. since I've been on this forum, I see folks with HUGE credit limits cheering folks on when they get their 200 or 500 CLI's . It seems to be the spirit of the forum. Our life circumstances, pitfalls, etc sometimes vary wildly -- but the thing I like about this forum is that those who "have" at the moment are constantly cheering on and giving sincere advice to those who for the moment "have not." Trust me on this, with a few unfortunate circumstances, that credit that was freely given, and be easily taken away with one stroke of a key.

Not being snarky, just explaining in a simple way how some people can be excited about small CLI's and how folks with hundreds of thousands in income and credit can be genuinely happy for them.

Very nice perspective Bluedog23, your empathy is inspiring. 

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Message 29 of 34
Moderator

Re: Credit Limit Increases


Bluedog23 wrote:
OP, somewhere today, someone got a pair of new pants that cost 12.00 and they are extremely happy and grateful for those 12.00 pants. Maybe they had done without new pants or whatever for a very long time, or maybe they just got a job and are excited about buying their own pants as a result of their own HARD WORK. Could any of us look down on that excitement and say, " well they're only 12.00 pants. Why are you so excited? I've got pants that costs 20 times yours." Same thing with CLI 's. since I've been on this forum, I see folks with HUGE credit limits cheering folks on when they get their 200 or 500 CLI's . It seems to be the spirit of the forum. Our life circumstances, pitfalls, etc sometimes vary wildly -- but the thing I like about this forum is that those who "have" at the moment are constantly cheering on and giving sincere advice to those who for the moment "have not." Trust me on this, with a few unfortunate circumstances, that credit that was freely given, and be easily taken away with one stroke of a key.

Not being snarky, just explaining in a simple way how some people can be excited about small CLI's and how folks with hundreds of thousands in income and credit can be genuinely happy for them.

+1000  Bluedog23, you put this perfectly!



Start: 619 (TU08, 9/2013) | Current: 791 (TU08, 12/1/17)
Sam's Club MC $25000 | Marvel MC $25000 | Macy's AMEX $25000 | AMEX BCE $20400 | Discover IT $20000 | Macy's Store $20000 | Cap 1 QS WMC $17250 | BoA BBR #1 $17200 | JCP $15000 | Citi DC $12600 | Freedom VS $12000 | BofA BBR #2 $11800 | Disney VS $11500 | Care Credit MC $11200 | Cash+ VS $10500 | CashForward WMC $10000 | Barclay Rewards WMC $10000 | WCU Visa $10000 | Amazon Store $8000 | Blispay $7500 | Target MC $5000 | Sony Card $4250 | ~~Gardening Since 11/2/17
Message 30 of 34