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lydiadietz
Posts: 17
Registered: ‎08-10-2008
0

Denied Household Bank CLI Interesting...

I've had a card for about 15 months with a $750 limit. Charge about $65 or so each month and PIF trying to keep it under 10% util so I figured I'd ask for a $250 CLI basically so I could use it more, and was declined because of acct util. I assumed this was because 2 months ago the card reported $300 spent, but when I called today and spoke to an analyst she explained that they feel I don't use the card enough to warrent an increase. I told her I was trying to keep in under 10% and she said that was insane, she'd never heard of such a thing, and that they only raise an eyebrow if you use over 50%. Just thought that might be of interest to anyone who isn't app'ing for new cards, but might want a CLI.
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Denied Household Bank CLI Interesting...

This is their subprime mentality rearing its head...
Regular Contributor
-RED
Posts: 231
Registered: ‎08-07-2009
0

Re: Denied Household Bank CLI Interesting...

Luck of the draw.

 

If not...Try and try again!

-800 or Bust...!
Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008
0

Re: Denied Household Bank CLI Interesting...

Hi lydiadietz! Welcome to the forums!

 

As with any CLI request with any lender, YMMV with regard to the information obtained from the CSRs. Take whatever they say with a grain of salt, because you could hangup, call back, and get a completely different response from the next person that answers the phone.

 

I just wanted to toss in my $.02 regarding utilization. There's a difference between utilizing your card (to whatever limit) and PIFing, and utilizing your card to (whatever limit) and carrying a balance. Frequently, when I read about keeping credit card utilization "low", the writer doesn't distinguish between the two types of utilization. While any lender can and might be sensitive to both at some threshold of usage, I don't believe that keeping credit card usage under 10% when you PIF is necessary.

 

Let's say you have a CC with a $1000 limit. Each month you charge no more than $90 to $100 and PIF. Your utilization would definitely be low. It woudn't signal to the lender, however, that you have an "appetite" for credit, and an ability to utilize and pay back (even immediately) larger short-term loans. So, if you have a $1000 limit, and you charge and PIF $650 per month you might get the lenders attention. You'd likely be going over their secret-never-gonna-tell-ya threshold for determining that your appetite for credit has grown, and you have the discretionary income and discipline to handle larger short-term loans. They'll begin to see you as a potential source of income. Same scenario, only you don't PIF, you may begin to look risky-- perhaps with limited or negative cash flow. The higher the balance goes, and perhaps minimum payments, and the the credit line is a significant liability for the lender.

 

Now, this is NOT to encourage you spend more money, or money that you didn't have to spend in the first place. I just wanted to point out that high/low utilization can be viewed very differently when you're a PIF customer vs. a balance carrying customer.

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Established Contributor
Posts: 742
Registered: ‎12-19-2008
0

Re: Denied Household Bank CLI Interesting...


LilMirth wrote:

Hi lydiadietz! Welcome to the forums!

 

As with any CLI request with any lender, YMMV with regard to the information obtained from the CSRs. Take whatever they say with a grain of salt, because you could hangup, call back, and get a completely different response from the next person that answers the phone.

 

I just wanted to toss in my $.02 regarding utilization. There's a difference between utilizing your card (to whatever limit) and PIFing, and utilizing your card to (whatever limit) and carrying a balance. Frequently, when I read about keeping credit card utilization "low", the writer doesn't distinguish between the two types of utilization. While any lender can and might be sensitive to both at some threshold of usage, I don't believe that keeping credit card usage under 10% when you PIF is necessary.

 

Let's say you have a CC with a $1000 limit. Each month you charge no more than $90 to $100 and PIF. Your utilization would definitely be low. It woudn't signal to the lender, however, that you have an "appetite" for credit, and an ability to utilize and pay back (even immediately) larger short-term loans. So, if you have a $1000 limit, and you charge and PIF $650 per month you might get the lenders attention. You'd likely be going over their secret-never-gonna-tell-ya threshold for determining that your appetite for credit has grown, and you have the discretionary income and discipline to handle larger short-term loans. They'll begin to see you as a potential source of income. Same scenario, only you don't PIF, you may begin to look risky-- perhaps with limited or negative cash flow. The higher the balance goes, and perhaps minimum payments, and the the credit line is a significant liability for the lender.

 

Now, this is NOT to encourage you spend more money, or money that you didn't have to spend in the first place. I just wanted to point out that high/low utilization can be viewed very differently when you're a PIF customer vs. a balance carrying customer.


+1

 

Hi LilMirth, 

 

I, for one, may have been careless with my distinctions, when writing here, presuming the recipient of the message knows the difference.

 

Good point and an excellent post, IMHO!

Frequent Contributor
moonman
Posts: 293
Registered: ‎05-01-2007
0

Re: Denied Household Bank CLI Interesting...

I've had this card since oct 2006 (750 cl too with no annual fee) and did not receive no auto cli like they said for almost two years used the card a ton for a year and finally I got fed up and in dec 08 i hit the luv button for 300 and got it but since then nothing but the same card utilization message so sockdrawer it went.

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