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## Credit Limit and FICO score - a logical approach

Super Contributor

## Credit Limit and FICO score - a logical approach

I was thinking about what a logical CL for a credit card should be, with the aim of deciding on appraches to CCCs for a CLI sometime way into the future.  It struck me that as we all try and keep util at 9% or less, the logical CL for any card is 11 times the average amount we run through a card in a month.

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 1 of 26
25 REPLIES
Senior Contributor

## Re: Credit Limit and FICO score - a logical approach

Is there any particular algorithm you use to come up with 11 times the amount in a month?

That would put the limit on the CC I use that month pretty high.
Here we go again...
Message 2 of 26
Valued Contributor

## Re: Credit Limit and FICO score - a logical approach

1. MC BOFA, push through up to 600 usd/month, CL 15000
2. AMEX BOFA push through up to 1000/month, CL 15000
3. As far as I understand, there is no logic when it comes to FICO, CL, CLI, APR and other credit related matters.
IN VINO VERITAS.
Message 3 of 26
Valued Contributor

## Re: Credit Limit and FICO score - a logical approach

FretlessMayhem wrote:
Is there any particular algorithm you use to come up with 11 times the amount in a month?

That would put the limit on the CC I use that month pretty high.

100% of CL divided 9% of util equal 11.111111111111111111.......
IN VINO VERITAS.
Message 4 of 26
Senior Contributor

## Re: Credit Limit and FICO score - a logical approach

wmarat wrote:

FretlessMayhem wrote:
Is there any particular algorithm you use to come up with 11 times the amount in a month?

That would put the limit on the CC I use that month pretty high.

100% of CL divided 9% of util equal 11.111111111111111111.......

Oh yeah. Duh. Sorry, it's early and my brain isn't functioning at full capacity yet.
Here we go again...
Message 5 of 26
Super Contributor

## Re: Credit Limit and FICO score - a logical approach

Note - I mean logigical for me.  What CLI should I be aiming for in my best interesats?

I don't want, in these challenging times, to be hitting love buttons at every opportunity.  I want a plan/concept of what CL I should aim for on each card.

For example, my low APR CU card is for anytime I need to carry a balance (one that is too little to bother taking money out of my investment account) for a month - that CLI I need not touch as it is currently 100 times my average monthly use and about 10 times the balance I would actually consider carrying.
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 6 of 26
Valued Contributor

## Re: Credit Limit and FICO score - a logical approach

MidnightVoice wrote:
I was thinking about what a logical CL for a credit card should be, with the aim of deciding on appraches to CCCs for a CLI sometime way into the future.  It struck me that as we all try and keep util at 9% or less, the logical CL for any card is 11 times the average amount we run through a card in a month.

I don't know about anyone else, MV, but I'm glad you posted this notion!  I think it's a great rule of thumb for anyone trying to manage util.

I hadn't gotten anywhere near that far in my thinking-through on my cc accounts - just had been sort of blindly trying for CLI's (with mixed success) in and around all the other work I'd been doing to sort out my score and debt.

I'll definitely keep this in mind when trying to figure out when/how to use my cc's and ask for CLI's, etc.

Thanks!!

_____________________________________________________________________________
It's never too late to become the person you might have been. ~George Eliot

02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

Backdoor Numbers, Credit Scoring 101, Understanding Your FICO Score PDF
Message 7 of 26
Valued Contributor

## Re: Credit Limit and FICO score - a logical approach

I have used 9% util excuse a few times when I asked for CLI. I works sometimes, but sometimes it doesn't.
IN VINO VERITAS.
Message 8 of 26
Senior Contributor

## Re: Credit Limit and FICO score - a logical approach

wmarat wrote:
I have used 9% util excuse a few times when I asked for CLI. I works sometimes, but sometimes it doesn't.

Working sometimes is better than not working at all!
Here we go again...
Message 9 of 26
Valued Contributor

## Re: Credit Limit and FICO score - a logical approach

FretlessMayhem wrote:

wmarat wrote:
I have used 9% util excuse a few times when I asked for CLI. I works sometimes, but sometimes it doesn't.

Working sometimes is better than not working at all!

True
IN VINO VERITAS.
Message 10 of 26