How to increase overall CL

[Adiff]

Hello all,

I have been using fico score watch for years now, however, I am new to these forums. I have read through many posts and have learned some nice things. I have a question that I hope you can help me with. I have recently graduated college and have started a new career. I have racked up credit card debt of about $7,000 while in college that I plan to pay off in lump sum with an upcoming bonus. After checking my fico score I see that paying down my credit card debt will significantly bump my credit score from the 650's (with 100 percent utilization) to around 720-750's (with less than 5 percent utilization). I have two cards with moderate limits (in my opinion) of $2,500, and $3,000, and a Discover that I plan to keep with a $500 limit (may increase?), and a few small cards that I want to get rid of, or just stop using. I want to significantly increase my overall credit card portfolio and CL over the next six months to a year to around $30,000 - $50,000 at least. What steps should I take to reach this goal after I pay down my balances this month?

Should I ask for some of my CL to be extended? Should I apply for a particular card and maybe get a high CL and start there?

[enharu]

Pay down those cards and ask for a CLI.

If you want high CLs, check out credit unions or GE backed cards. They are usually the most generous in that aspect.

[Adiff]

What is a GE backed card if you don't mind me asking?

[FinStar]

GE-backed cards are those underwritten by GECRB.  Walmart/Walmart Discover, Sams/Sams Discover, PayPal Extras MC/Paypal SC, eBay MC, JCPenney, Lowes are amongst a few.

[enharu]

GECRB.

Basically any card that is issued and serviced by GE capital. For example Paypal MasterCard.

[Adiff]

Oh ok, thank you.

So pay ask for CL increases first, then go for a GE backed. As far as the GE backed goes, would you recommend that over maybe a US Bank, Chase, or Barclay's? Asking because I've read about those throughout the forum.

[FinStar]

In looking to grow or expand your CC portfolio, you may want to consider cards by AMEX, BOA, Chase, Barclays, US Bank, Citi or any CUs (depending on what you already have besides Discover).  It also depends on what your financial goals are or whether you are in the market for any type of rewards programs, lower APR products, etc. 

[PNut08]

In my opinion, it is best to get a card from a company that will grow with you over time. I have a bank of america card that I have had for 7 years and it has grown nicely over that time. Chase also grows well over time. I would be more concerned with paying off what you owe, letting your CS shoot up and then app for a card through Chase, Amex, BoA that will grow well with you over time. I would personally rather have one of those cards than a bunch of GECRB backed cards. If you're just looking for a high limit card so that when you apply for a prime card they give you a higher limit, then go with GECRB first, then app for Amex/Chase/BoA once the CL on the GE card shoots up.

[Adiff]

Ok. What time period should I wait in-between applying for CL increases, and new CC's with higher CLs?

[longtimelurker]

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@PNut08 wrote:

In my opinion, it is best to get a card from a company that will grow with you over time. I have a bank of america card that I have had for 7 years and it has grown nicely over that time. Chase also grows well over time. I would be more concerned with paying off what you owe, letting your CS shoot up and then app for a card through Chase, Amex, BoA that will grow well with you over time. I would personally rather have one of those cards than a bunch of GECRB backed cards. If you're just looking for a high limit card so that when you apply for a prime card they give you a higher limit, then go with GECRB first, then app for Amex/Chase/BoA once the CL on the GE card shoots up.

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But be aware just how much things can be YMMV (Your mileage may vary).  We've just had a few threads on how for many people Chase didn't grow, and the only way they could get additional Chase credit was applying for a new card.