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Does using a card a lot increase chances of a CLI?

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dddewdrop
Valued Contributor

Re: Does using a card a lot increase chances of a CLI?


@nicholasyud wrote:

as you mention you don't want to get into credit debt and having problem to.make payment then I suggest :

bring your card out one per month. One small charge. Let them report.

Sign up for auto paid. 

you all set


Nice. I like that. And to what others said: you are right too. I am aware that my biggest problem moving forward is myself so I just have to train myself.Smiley Happy  I like the idea of kind rotating using one card a month to charge some stuff. Maybe hang out a little 25% util on a card here or there and pay the credit card a little interest on it here or there. Let them have a little piece. I am in this for the long haul so a month over 9% doesn't matter but beyond that keep stuff mostly paid in full. Sounds like a plan.

Message 11 of 15
jcstarkey8826
Established Contributor

Re: Does using a card a lot increase chances of a CLI?


@SnackTrader wrote:
I disagree with the idea of heavy spending is the only way to get CLI.

Responsible usage is the primary indicator of a CLI in my opinion.

I put less than $1,000 through my Amex over the first 60 days and received a $9,000 CLI. So...there you go. Charge only what you can and pay in full. That's my secret to success.

+1

 

I make sure I put any expense I pay on my CC though. I just make sure to PIF to show that I can manage it. Currently working on Chase freedom CLI. Pumped over 3k through the card last month and PIF 6 times. Trying to make them get the hint, but I didn't splurge on anything. It was bills, rent, groceries, etc. things I have to pay for regardless.

In my wallet: Discover it 6800 CL, Capital One Quicksilver Sig 5k CL, Chase Freedom 4k CL, GCU Patinum Visa 1500 CL
Message 12 of 15
bs6054
Valued Contributor

Re: Does using a card a lot increase chances of a CLI?


@youngandcreditwrthy wrote:

Might also remind your wifey that your ability to provide for her and a family partially

hinges on ability to obtain credit...

 

in other words,

if you have too much debt and cant pay a cc bill, you won't be able to obtain a mortgage or auto loan in the future... Imo, that's a pretty good motivation LOL..

in reality, you'd prob just have to pay a much larger interest rate with bad credit than not be able to obtain it at all.

 


How young are you!  Why assume that the OP is providing for wife and family, when it could easily be her with a higher income.

 

Also, it's perfectly possible, with discipline of course, to have good credit scores without high CL cards.  Note that CL isn't part of the FICO score, except indirectly as part of utilization.  So if you have low CL cards, but keep PIF before the statement, your scores can be high enough to get the best rates on mortgages and other loans.

Yes, it can be a pain as you cannot charge much, and you forego the rewards associated with better cards, but you can still do OK.....

Message 13 of 15
scenery_guy
Established Contributor

Re: Does using a card a lot increase chances of a CLI?


@bs6054 wrote:

@youngandcreditwrthy wrote:

Might also remind your wifey that your ability to provide for her and a family partially

hinges on ability to obtain credit...

 

in other words,

if you have too much debt and cant pay a cc bill, you won't be able to obtain a mortgage or auto loan in the future... Imo, that's a pretty good motivation LOL..

in reality, you'd prob just have to pay a much larger interest rate with bad credit than not be able to obtain it at all.

 


How young are you!  Why assume that the OP is providing for wife and family, when it could easily be her with a higher income.

 

Also, it's perfectly possible, with discipline of course, to have good credit scores without high CL cards.  Note that CL isn't part of the FICO score, except indirectly as part of utilization.  So if you have low CL cards, but keep PIF before the statement, your scores can be high enough to get the best rates on mortgages and other loans.

Yes, it can be a pain as you cannot charge much, and you forego the rewards associated with better cards, but you can still do OK.....


Yep. My highest scores up until about 10 months ago were when I only has a gas card with a $500 limit and 2 revolvers (Chase generic visa with $1,500 limit and Merrick Visa with $1,700 limit). In about 6 years with those cards and never changing limits my score went from mid 500's to upper 700's, like 785. I never even worried or watched my score, just used the cards heavy and always paid in full. 72 months of nearly maxing all three but always PIF before statement posts seemed to help along with a used car loan that went full term of 60 months. 

Then I found this site and boom - about a dozen new cards with nearly $150,000 in combined limits, new car loan and a lower score of 45 points. Worth all of it just based on rewards alone. Without the past 10-12 years of learning to manage debt, paying for my first CC screw ups and growing up I would never have achieved what I now have. 

Message 14 of 15
dddewdrop
Valued Contributor

Re: Does using a card a lot increase chances of a CLI?


@scenery_guy wrote:

@bs6054 wrote:

@youngandcreditwrthy wrote:

Might also remind your wifey that your ability to provide for her and a family partially

hinges on ability to obtain credit...

 

in other words,

if you have too much debt and cant pay a cc bill, you won't be able to obtain a mortgage or auto loan in the future... Imo, that's a pretty good motivation LOL..

in reality, you'd prob just have to pay a much larger interest rate with bad credit than not be able to obtain it at all.

 


How young are you!  Why assume that the OP is providing for wife and family, when it could easily be her with a higher income.

 

Also, it's perfectly possible, with discipline of course, to have good credit scores without high CL cards.  Note that CL isn't part of the FICO score, except indirectly as part of utilization.  So if you have low CL cards, but keep PIF before the statement, your scores can be high enough to get the best rates on mortgages and other loans.

Yes, it can be a pain as you cannot charge much, and you forego the rewards associated with better cards, but you can still do OK.....


Yep. My highest scores up until about 10 months ago were when I only has a gas card with a $500 limit and 2 revolvers (Chase generic visa with $1,500 limit and Merrick Visa with $1,700 limit). In about 6 years with those cards and never changing limits my score went from mid 500's to upper 700's, like 785. I never even worried or watched my score, just used the cards heavy and always paid in full. 72 months of nearly maxing all three but always PIF before statement posts seemed to help along with a used car loan that went full term of 60 months. 

Then I found this site and boom - about a dozen new cards with nearly $150,000 in combined limits, new car loan and a lower score of 45 points. Worth all of it just based on rewards alone. Without the past 10-12 years of learning to manage debt, paying for my first CC screw ups and growing up I would never have achieved what I now have. 


     

        

Ya. And that guy was correct. I do provide for my wife. She has no income. I am rebuilding. I used to make waay more than I do now. Like 20x as much and I had a huge amount of cash in my bank account and I just paid cash for everything. I also have learned a great deal from life experiences and am trying to do it right this time. Thanks again for all the responses.

Message 15 of 15
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