Increase CL on existing card or get a new CC?

[RKintaudi]

Hey all,

Just have a general question: Should I increase my CL on my existing BofA cash rewards card (CL: $900) or should I get a new credit card? I already have two credit cards as stated in my signature. Would adding a third hurt my credit more than increasing my CL on my existing card?

I've done some research and i figure that if I were to get a new credit card I would have a $5000 CL. 

As for my credit goals, I'm looking to continue to build my credit, I'm only 21 years old so my credit isn't all that old.  At the end of the month, i'm going to pay down another $160 dollars of my BofA card before my credit gets pulled next month for either the credit  card application or for the CL increase inquiry.

Thank you all for the insight.

[DaveSignal]

A new card costs an inquiry, plus you will have a point-hit for having a brand new account with no history. It also has an effect on your AAoA, which is a more significant hit if you don't currently have many reported accounts. Asking for CLI is only an inq, with no new account penalty or AAoA penalty. But, if there is an different card you want that would better benefit you, you might as well try for it. The AAoA will recover and the new account penalty doesn't last forever. When you have a thicker file, the point loss from a new account is negligible. If you have no plans for a major loan or something big in the very near future, it wouldn't hurt significantly to do both, the CLI and the new account. But if you get the CLI, you might want to wait until it reports before applying for a new account, since the new account might match or beat your increased limit.

[LittleMsLaur]

I agree with the previous poster. I'm a little more conservative with credit. I don't want a million cards in my wallet...I personally think it's a little overkill and unnecessary and you'd be better off having a few heavy hitters that do what you need them to do and that are manageable. My personal preference would be to go for the CLI....unless, like the previous poster mentioned, you find a card that works better for you. I read an article the other day about why it's almost better to pay with credit...REWARDS. Find a good, solid rewards card that works with your spending habits and manage it well. Spend, pay, and request appropriate increases when you've proven yourself to be a good cardholder. Minimizes the HP, prevents you from looking like you're desperate for credit and shows your responsible with your lines of credit and are worthy of more spending power.

[medic13]

You may not see much of a point drop since your limits are low it doesnt take much to throw your utilization through the roof.  A new card would drop your utilization as long as you keep ir from reporting a balance. When I was in your shoes a $400 payment could move my score 20 points or more.

[RKintaudi]

I think I may end up going for the CLI increase as my rewards with BofA is solid, 3% on Gas, 2% on Groceries and 1% on all purchases. Does anyone know how much I should i ask for? According to the sample credit matrix on CreditKarma, I'd be eligible for a $5,000 credit limit based on my scores and an annual gross income of $35,000. So should I ask for a $4,000 increase at the beginning of next month when my lower balance will be reported? I plan to have my BofA balance at around $100 dollars before my statement closes on the 2nd of December.

Thanks all

[DaveSignal]

As for as much as you think you can reasonably manage, but at least $5000. If you ask for more than they are willing to lend, they will counter.