Dead end CLs?

[Anonymous]

Hello everyone,

I just started reading through the forums here today, after reading some conflicting info elsewhere. I was just wondering if I'm on the right track, and if there really are cards whose credit limits hit a glass ceiling, no matter what you do.

A bit of back story: I have some debt, all stemming from college. Debt owed to Sallie Mae, and debt from my school that I am paying to a collection agency. This made establishing any kind of credit pretty much impossible. In August 2008, I got a secured visa with Bank of America, with the minimum $300 deposit. I decided to hold off on getting an unsecured card, using the solicitations I was receiving in the mail as a barometer. In Oct '09, I got a mastercard with Capital One with a $500 limit, and then in Oct '10, a visa no fee card with Capital One, also with a $500 limit (set to step up to $750 in two months). Most recently, I was able to get the security deposit back on my BofA card, and they gave me a $500 unsecured limit as well.

I always pay on time, and in full sometimes multiple times if I really need to. I have never been late on a cc payment, and I've paid on my outstanding education costs on a regular basis for about 5 years. According to my credit report, I have a 14% credit usage (which transunion says is bad but equifax says is good??). My scores are low, though: 671 on Transunion, 651 on Equifax.

I am definitely done applying for credit for a long while, since I do not really need more. However, it would be nice to have a better limit on some, so I can make a large purchase (like plane tickets) without pushing 80% usage on a card. Am I on the right track, or will I be stuck with this magic 500 limit on everything? I was told that the history of my past due payments on my debt would be removed in 2013, so should I expect to be stuck with these limits until then? Thanks in advance.

[Creditaddict]

you sound like your in line for Amex Zync or Citi Forward... I know you mentioned you didn't want to apply for more credit but only one of your cards will probably grow over 1k and that's Bank Of America... Once credit steps is done on Cap1, you could sit at that limit for years and years as so many have posted on here.

[Anonymous]

Funny that you should mention Amex. I've received pre-screened offers for Zync, as well as for a standard Amex green card, and Amex gold card. I didn't apply, because I was looking to avoid the fees associated with the cards (even though most of the offers waive the first year).

I requested the BofA CLI because I received a pay raise, and it was approved a couple of weeks ago. The main reason I don't want to apply for new credit any time soon is because I don't want to have so many requests for new lines of credit on my report. I'm a little annoyed that the Cap One cards probably won't go up much higher. I was pretty pleased when I finally managed a no fee card with rewards from them.

[vish1]

I dont agree that cap one cards never go above 1k or so. I opened my cap 1 in march 2010 with 500$ limit which was raised to 750 in 4 months (ie arnd july) and in decemer I got it bumped up to 2250.

[Anonymous]

Really? That's pretty awesome and congrats!

My first Cap One card only had a $200 limit, but it went to $500 in 3 months. As I said about the second card, it is set to go to $750, just like your scenario, vish.

I wanted to request a CLI on the first Cap One card, because of the pay increase...I figure if I'm making more income, I should be allowed a better limit. Would now be a good time to make such a request, or is it not worth the hard pull?

[vish1]

They did not do a hard pull for me. I did not check my softs though, but no hard for sure.

[Anonymous]

That's interesting. I tried getting a CLI over the phone (automated) and was told my card wasn't eligible. I'm not even sure what that means. I suppose that since my card is geared for people trying to build credit, they figure $500 is as high as you'll ever need to go?

I got a 10k boost in annual income and figured I'd try to create an opportunity to increase my limit beyond $500. I'm not sure if it would matter, though. When I asked BofA for a CLI, they aksed my income, and when the finally unsecured the card, they still only gave me a $500 limit

[vish1]

I am sure, cap1 wont give you first raise on your request, you should get that at abt 4 statements from the open. When you call them for further increase (another 4-5 statements later), the execs will tell you that they cant increase now. They did the same to me, but in abt 10-15 days, my limit got bumped up from 750 to 2250.

I am no expert, but my thought is that you are getting stuck in a scenario where all your cards are low limit and no one wants to be the first to break the barriers. I would say, you wait for a few weeks and ask cap 1 for a increase and do the same with bofa.

As your CLs are generally low, you may find this initial phase really painful.

[score_building]

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@Anonymous wrote:

Really? That's pretty awesome and congrats!

My first Cap One card only had a $200 limit, but it went to $500 in 3 months. As I said about the second card, it is set to go to $750, just like your scenario, vish.

I wanted to request a CLI on the first Cap One card, because of the pay increase...I figure if I'm making more income, I should be allowed a better limit. Would now be a good time to make such a request, or is it not worth the hard pull?

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It would make sense but they won't care.  The growth potential of a cap1 product is pretty well set in stone at the time of app.

If you apply and receive a low limit card, 95% of the time it remains a relatively low limit card for the duration, without respect to credit profile improvements.

eg.  Cap1 has denied my CLI requests on the same day amex, discover, gemb, citi etc. have granted 2-5k+ increases.

[Anonymous]

Hmm, well what course of action would  you recommend?

The BofA and the Cap One mastercard both have an annual fee, but the Orbitz Cap One visa I have has no fee. My immediate plan is really to just continue paying everything on time and having low usage, but I was wondering what I should consider for the future. Applying for credit at a more generous lending bank, then closing the accounts with fees?

Edit: You know,  I just double checked the terms for that Orbitz card. It's listed as an "Excellent Credit" card, but I hardly have excellent credit. However, you'd think having a card in this category would warrant a better limit than $500, or even the $750 they're agreeing to increase it to after 5 statements.

http://www.capitalone.com/creditcards/orbitz-visa-platinum-credit-card/?linkid=WWW_1010_CARD_TGUNS11...