Justifying a CLI with low usage?

[masscredit]

Many of us want to see our limits keep increasing over time and some credit card companies are known for being generous.  But what about when you have a decent limit (say $10K-$15K) but don't use the card that much? You might run a few hundred through it once in awhile. I know they don't ask why you want an increase but is the person on the other end of the line looking at the screen and wondering why someone wants a higher limit when they don't even use 10% of what they have?  Or do they just plug in the numbers and give a "yes" or "no" based on your credit? 

[Anonymous]

The people on the other side of the screen are just doing their job and I'm sure they have all the statistics on an individual account. I have card with $9,000 limit and lifetime spend only two grand. lifetime spend,
Not one month.

If I was running show I would give out big limits sure, then increase sp after granting them to see what they are up to. Throttling down as necessary.

[Anonymous]

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@masscredit wrote:

Many of us want to see our limits keep increasing over time and some credit card companies are known for being generous.  But what about when you have a decent limit (say $10K-$15K) but don't use the card that much? You might run a few hundred through it once in awhile. I know they don't ask why you want an increase but is the person on the other end of the line looking at the screen and wondering why someone wants a higher limit when they don't even use 10% of what they have?  Or do they just plug in the numbers and give a "yes" or "no" based on your credit? 

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I think it depends if a computer or a real person is doing the evaluation. If it's a computer analysis program, consistent low utilization is a marker of responsible credit use, which generally would lead to credit limit increases being approved. If it's a real person making the decisions, they're much more likely to ask questions before increasing a limit.

[Anonymous]

I have to agree with other posters. Its a computer that makes the decision. My cabelas card, Ive had it for years and maybe put $200 on it. Last payment was 2013. But I put in a CLI last month and it went from $6k to $18k. So its really not about use.

[Kevin86475391]

This is a very relevant topic for me. I have 7 cards that I use to maximize rewards and thus spread my spending out. My cards rarely reach more than 2 or 3% utilization before I PIF.

Anecdotally I haven't ever had an issue with a lender saying something like, "Why would we increase your limit when 95%+ of it is always unusued?" But at the same time I couldn't really fault them if they did. On the one hand I'm a low risk for defaulting, but on the other hand I'm sure they limit their total exposure and could perhaps be giving half or more of my limit to someone else who might use it more instead of tying it up with me.

Regarding human vs computer analysts, I would strongly suspect that their algorithms are sophesticated enough to know the difference between someone who has a 1% utilization yet cycles thousands through their card every month and PIFs vs someone who has a 1% utilization because they went to McDonald's once during the cycle and haven't paid it off yet. If their internal scoring models and automated systems can't at least detect basic usage and only use a raw utilization percentage that's pretty pathetic.

[Anonymous]

but is the person on the other end of the line looking at the screen and wondering why someone wants a higher limit when they don't even use 10% of what they have?

In the case of Discover, I think the answer is no. Until this month, (had extra high spend), I was averaging less than $120 a month in spending. My last two CLI's were both two day reviews and one was $4500 and the other $5000. The card is now at $21,250.

[masscredit]

I thought a big part of receiving a CLI is usage. I try to spread mine out between all of my cards and focus on the ones that I'd really like to see grow. 

 When it comes to manual reviews by a human, how are they different from a computer spitting out an answer?  Do they take certain things into consideration?  It took about 4-5 minutes when I called to have my Walmart card reviewed for an increase this week. I was wondering if the person was looking over my report and usage before providing an answer. 

[Anonymous]

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@masscredit wrote:

I thought a big part of receiving a CLI is usage. I try to spread mine out between all of my cards and focus on the ones that I'd really like to see grow. 

 When it comes to manual reviews by a human, how are they different from a computer spitting out an answer?  Do they take certain things into consideration?  It took about 4-5 minutes when I called to have my Walmart card reviewed for an increase this week. I was wondering if the person was looking over my report and usage before providing an answer. 

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They were pulling a soft or hard credit check. I think usage (may) contribute to the issuer increasing the line vs you requesting it. I was maxing out my $500 Cap one card, before they randomly gave me $5k. But then I had to request the increase to $7k.

[ddemari]

OP, i like your thread because I have felt that same a lot in the past. I really only ever ponder that now If I were doing a CLI recon with someone like BOA or barclays because they will mention usually when they are telling you what to do for nex time, like use more of the card and pay it off in full and you might qualify for a limit in line with your spending. 

[masscredit]

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@ddemari wrote:

OP, i like your thread because I have felt that same a lot in the past. I really only ever ponder that now If I were doing a CLI recon with someone like BOA or barclays because they will mention usually when they are telling you what to do for nex time, like use more of the card and pay it off in full and you might qualify for a limit in line with your spending. 

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Details like that can be very helpful to the consumer. That way we know what needs to be done for next time. 

I've learned that usage doesn't matter as much as I thought it does and to shoot for the stars if they ask how much I'm looking for. I do that sometimes. Other times I ask for a modest increase because I think it will be more likely to be approved. They will usually give a counter offer if they can't approve that amount so it doesn't hurt to ask. The answer is usually "no" if you don't try.