Credit Limit Increases

[BlueTank]

I'm curious how others view credit limit increases. Personally, I was able to recieve the amex 61 3x cli, and I asked for 3x on my citi card the same day and went from 3500 to 10400 (100 dollars short of what I asked, idk, but I'll take it). However I've read forums where people are happy about 500 dollar limit increases. I know it's a case by case basis, but in the grand scheme of things, a 500 cli to me doesn't seem to mean alot. I am young and only make ~30k a year, however I'm reaching a point where I'm not sure what to do with credit limit increases. I don't need anymore credit but want to continue growing on my accounts. I plan on doing an amex 3x cli again after the 6 month time point, am I wrong in thinking 3x every cli is the way to go? I'm new and trying to learn what's best at a young age, so any advice is appreciated. 

[myjourney]

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@BlueTank wrote:

I'm curious how others view credit limit increases. Personally, I was able to recieve the amex 61 3x cli, and I asked for 3x on my citi card the same day and went from 3500 to 10400 (100 dollars short of what I asked, idk, but I'll take it). However I've read forums where people are happy about 500 dollar limit increases. I know it's a case by case basis, but in the grand scheme of things, a 500 cli to me doesn't seem to mean alot. I am young and only make ~30k a year, however I'm reaching a point where I'm not sure what to do with credit limit increases. I don't need anymore credit but want to continue growing on my accounts. I plan on doing an amex 3x cli again after the 6 month time point, am I wrong in thinking 3x every cli is the way to go? I'm new and trying to learn what's best at a young age, so any advice is appreciated. 

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It's fine to seek large CLI's but IMHO don't get use to 3X CLI's because your time will come and then you too will be happy for any increase that you get

Just my 2 cents tho

[longtimelurker]

It partially depends on your goals and where you are in your credit life.   One of the negatives about forums like this is it encourages (by side-effect) a wish for increased credit limits and getting new cards.

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.

People happy with $500 CLI are usually starting from a low CL (so 300-800, or 500-1000) so it is percentage wise significant.   If the CLI is a hard pull, you want it to be as much as possible,

So, go for CLI if you feel that you want it, but also imagine you never came across this forum.  Would you feel the need?

[djc1puno]

Sooner or later your going to hit the max of what banks can offer you...everyone is different and come from different situations so clis are looked at differently. Those like myself who's rebuilding my credit will gladly take small clis...a cli is a cli regardless how of minute it may seem to others

[BlueTank]

@longtimelurker - I think you make a very good and mature point. I have a 25k limit goal on my current cards at some point just because (most likely because of forums like these). I have a pay in full mindset & lifestyle which I plan on maintaining, however there are circumstances that arise, 25k for me seems to cover anything. Very good advice though. 

[CreditScholar]

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@djc1puno wrote:
Sooner or later your going to hit the max of what banks can offer you...everyone is different and come from different situations so clis are looked at differently. Those like myself who's rebuilding my credit will gladly take small clis...a cli is a cli regardless how of minute it may seem to others

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+1. All lenders have a maximum exposure that they will lend you, and it's largely based on your income. Given you're only making 30k, you may bump up against that sooner rather than later. At that point, lenders will be much hesitant to give you CLIs (or even approve you for additional cards).

If your income doesn't improve significantly in the future, this issue will likely take care of itself as you hit the upper limit with each lender. At that point you'll either need to increase your income, or choose very carefully which cards (from each lender) are most important to you and keep those.

[09Lexie]

+1

And at that point any amount in CLI's should be appreciated.

[navigatethis12]

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@BlueTank wrote:

 I plan on doing an amex 3x cli again after the 6 month time point, am I wrong in thinking 3x every cli is the way to go?

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 I would be surprised to see you go above 15000 with American Express or any other lender since that is half of your income.. A 500 would never be worth a hard inquiry to me. I do not need anymore credit either and already have more than income, but I just want to see how high I can go. You could just not ask for any  more increases and see if they increase it on their own. As others said, you may hit a wall with the credit a lender will lend to you. While Chase, Citi, FIA, and others move limits between cards freely, I have been told by US Bank that they do not. So if you waste a nice limit on a card that is worthless with them they won't transfer it to approve another.

I don't think being young matters much to lenders, as long as you have a clean report. I am 22 and haven't had an issue really, so you will get there soon.

[BlueTank]

Thanks for all the replies, Just an update I did 6 month CLI today and was approved for 9200. I've probably hit my limit but I'll take it being 23 and with my current income. Now to just sit and let them age. 

[jennylocha]

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!