@Anonymous wrote:
@EaglesFan2006 wrote:
I am wondering about how to go about asking for a credit line increase. I have two cards, both of which I got last June. One is Cap One, the other Orchard. Each currently has a limit of $500. I have had no lates or anything negative on either account. I have carried high balances, but have paid them off. I am interested in an increase to enhance my credit profile. I am wondering how often this typically happens. How should I go about asking them?
Hi eaglesFan2006!
I'd suggest, given that your Cap1 & Orchard account are less than 1 year old, that you hold off on any requests for increased credit from the current lenders, and any requests for new credit accounts. In the meantime, while you wait for the 1st birthdays of your new accounts, you can work on cleaning up any baddies if you have any. If not, just bide your time. *Time* is what helps credit profiles the most. If you have clean reports, and you reach a year, you'll probably see a decent score boost with some young, but solid history behind you. I'd then suggest that you go after a credit union card that might offer you a significantly higher limit than you might otherwise be offered, considering your current limits (which some/a lot of lenders take into account).
You don't want to rack up a trail of builder cards that you're later going to regret and be annoyed with. The builder cards are great for getting your foot in the door, and getting some history under your belt, especially if you've had some derogs in the past, but people tend to 'outgrow' them pretty quickly, and the low limit, high APRs get really old, really fast. And, it can become more difficult to obtain prime products, with decent limits, with too many builder products, with low limits.
I say, hold on to what you've got for the 5 to 6 months that it'll take to reach a year. Focus on saving $$$, and cleaning up any baddies that might be lingering. The time will fly! Then, it'll be time for a strategic credit card app. Target a CU that will most likely break through the low limit ceiling for you. Give that some time to grow, 6 to 12 months, then start looking at getting rid of of Orchard & Cap1, to be replaced with products that are exactly (or as exact as we can get these days, LOL) what you want.
That's my $.02
Totally agree with LilMirth.
EaglesFan, remember that increased CL's will not give you a FICO score boost.
The only way they improve your FICO is if they change utilization, and they would have to be significant increases to significantly impact your utilization. The very best way to reduce utilization is to pay it down, if at all possible. What's your current utilization - is it an issue? For FICO scores, the best strategy seems to be to have one account report zero balance and the other report a very small (less than 9%) balance. You'll see FICO respond favorably to that. And remember, they look at number of accounts reporting a balance as well, so if you're currently reporting a balance on both cards, you'll see an increase when you only report a balance on one.
Opening a new card, no matter what the CL, is unlikely to grow your FICO. And remember that FICO does not care one iota what your CL is.
After you put a little age on your current cards, and have rebuilt your credit as much as you can, it will be a good time to look at app'ing for a new card. Think of your next app kinda like a reward for good behavior.
If you haven't already, pull your FICO score here and look at the items that are "Helping Your FICO Score" and "Hurting Your FICO Score". Working on the items listed under Hurting Your FICO Score will best position you for the type of card you would like to have.
Best wishes!
