Reply
Established Contributor
Andy77
Posts: 566
Registered: ‎10-02-2007

How Are Credit Limit Increases Determined..

Lets say a bank does not do a pull of any kind and they base your CLI on performance with that particular banks card...

 

How do they determine what kind of increase you will get?

 

My CL is low 200.00 and Citi reps tell me if I am going to spend over that send in weekly checks...

 

So, if I send in lets say 1000 a month and use my card and PIF every month, when they give me an increase do you think it would be higher because I am charging a lot and paying it off?

 

Thanks  

Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: How Are Credit Limit Increases Determined..


Andy77 wrote:

Lets say a bank does not do a pull of any kind and they base your CLI on performance with that particular banks card...

 

How do they determine what kind of increase you will get?

 

My CL is low 200.00 and Citi reps tell me if I am going to spend over that send in weekly checks...

 

So, if I send in lets say 1000 a month and use my card and PIF every month, when they give me an increase do you think it would be higher because I am charging a lot and paying it off?

 

Thanks  


Hi Andy77,

 

Do you mean overpaying, and then charging (or attempting to) over your $200 credit limit? Or, do you mean charging up to $200 five times in a month, and paying the balance in full ($200) five times?

 

The reason that I'm differentiating between the two is because the former could make it appear that you're mismanaging your credit (going over the limit), which could delay or prevent your CLI goals. The latter might be managable, but I don't think that CITI allows that many payments per month. And, I think you could achieve the goal of fully utilizing your credit line and demonstrating the your need for a larger credit line by charging up to the limit (don't go over, though!) and PIFing once in a month.

-------------------------------------------


Friendly, Supportive & Respectful


Understanding Your FICO Score  |  Credit Scoring 101  |  Common Abbreviations  |  FTC: FCRA Links  |  FTC: FDCPA Links  |  Opt-Out  |  State Resources


"However gradual may be the growth of confidence, that of credit requires still more time to arrive at maturity” ~ Benjamin Disraeli


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+