Is it recommended to call and inform your credit card companies that you have had an income increase if it is a significant amount?
Say going for $12,000/yr to $28,000-$40,000?
I only ask due to a Capital One credit analyst telling me it is advisable to do so as it can lead to higher TLs.
@CotySinz wrote:Is it recommended to call and inform your credit card companies that you have had an income increase if it is a significant amount?
Say going for $12,000/yr to $28,000-$40,000?
I only ask due to a Capital One credit analyst telling me it is advisable to do so as it can lead to higher TLs.
I think it depends somewhat on how the increase occurred, and when: If it's due to a raise in the same job you've had for years, that's one thing, but if it's due to you changing employers/fields/jobs and the change is relatively recent, or if you've changed jobs frequently in the last several years, that might actually be considered negatively by creditors, at least for the first few months of this new situation. Even a promotion might be viewed as putting you at higher risk for losing your current job, as people getting promoted beyond their capabilities (and then failing/getting demoted or terminated) isn't uncommon. Not saying that's you or that you won't succeed if this IS a promotion situation, just making you aware of how creditors might view it as making you more risky, at least temporarily.
If this increase is less than a year old, and especially if it's due to any kind of major change in your employment (even promotion), I'd say be cautious and wait at least six months, maybe a year, until this new income level is proven over a fairly long stretch as something you can sustain, before requesting any CLIs or otherwise informing creditors.
Just my two pennies on it, from someone who's extremely (and perhaps a bit TOO) cautious about such things, especially during a recession. 
Congrats on the income increase, though! Nice to hear good news of that kind for someone, in this economy! 
@Scamp wrote:
@CotySinz wrote:Is it recommended to call and inform your credit card companies that you have had an income increase if it is a significant amount?
Say going for $12,000/yr to $28,000-$40,000?
I only ask due to a Capital One credit analyst telling me it is advisable to do so as it can lead to higher TLs.
I think it depends somewhat on how the increase occurred, and when: If it's due to a raise in the same job you've had for years, that's one thing, but if it's due to you changing employers/fields/jobs and the change is relatively recent, or if you've changed jobs frequently in the last several years, that might actually be considered negatively by creditors, at least for the first few months of this new situation. Even a promotion might be viewed as putting you at higher risk for losing your current job, as people getting promoted beyond their capabilities (and then failing/getting demoted or terminated) isn't uncommon. Not saying that's you or that you won't succeed if this IS a promotion situation, just making you aware of how creditors might view it as making you more risky, at least temporarily.
If this increase is less than a year old, and especially if it's due to any kind of major change in your employment (even promotion), I'd say be cautious and wait at least six months, maybe a year, until this new income level is proven over a fairly long stretch as something you can sustain, before requesting any CLIs or otherwise informing creditors.
Just my two pennies on it, from someone who's extremely (and perhaps a bit TOO) cautious about such things, especially during a recession.
Congrats on the income increase, though! Nice to hear good news of that kind for someone, in this economy!
I did not think of it that way, you make a VERY good point and I have to agree with you.
So +1 to Scamps reply.