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Regular Contributor
SRAGS
Posts: 163
Registered: ‎07-30-2009
0

Please advice, is it right thing to decrease UTL?

Hello...

 

Please help me...

 

My  Credit file is excellent... no baddies, no lates..... My previous scores one month back  equifax fico 705, transunion 708, credit sesame 749.(may 4th)  Lst month my utilization is 12000.   one recent enquiry.

 i have auto loan at dcu  1.99 percent     which is in good standing... balance on auto loan is 17000.

Mycards...

 

DISCOVER  8500    0

BOA VISA SIG   10,000  0

DCU  PLATINUM  10,000    UITLIZATION 2600

CITI  PLATINUM    6200     0

CITI THANK PREFERRED  4500  0

CAPITAL ONE BESTBY     5000  0

BANK OF AMERICA   12500     UTILIZATION   6999.

 

In another   10 days...  iam getting 2500  ... i will be paying off dcu or i will pay bank of america card.

 

Right now.. iam thniking of  increasing limit on bank of america card by 7500  ....with out hp  ... by decreasing limit on bank of visa signature card..which is carrying 10,000 limit.

 

Is wise thing to do?   As utl on bank of america card right now is almost 55%...  by increaing its lmiti  from 12500 to 20000.... is good idea or not and that too with out sp or hp.

visa siggy   is charge card.. is not reporting any balance... it noly reports highest balance...my last hightes blance is 4500 one year back..  10.000 on that with out reporting balance is no use......

 

Ur suggestions please..  just want to bring those utl s below  10 percent and want to apply for american express bce or bcp.    .

 

Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
0

Re: Please advice, is it right thing to decrease UTL?

First of all its a bad idea to decrease utilization by getting higher cl. You should be decreasing utilization only through paying debts off.

As it is, BofA might not approve your CLI since your util is high, at least on their card.

Why not take your time, pay your debt down, then apply for new cards? Pyramiding debt isn't a real solution.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Regular Contributor
SRAGS
Posts: 163
Registered: ‎07-30-2009
0

Re: Please advice, is it right thing to decrease UTL?

thanks for reply.

 

Iam not pulling my credit.  Iam just chaning limits from one card to another with out hard pull. or soft pull. when i contacted bank of america ....they told i can go for it.

 

thanks.

Established Member
tk_0014
Posts: 67
Registered: ‎04-19-2013
0

Re: Please advice, is it right thing to decrease UTL?

[ Edited ]

Well, Decreasing UTL is always good. Below 5% if possible. Definitely put that 2500 toward the highest interest card and don't look back.

 

With your scores, I would think an AMEX revolver would be an approval. Unless they think you have too much available credit for your income. You also did not say anything about Inquiry. Too many new accounts will hurt you.

 

 

Decrease Utilization and give it a shot if your Inquirys are below 4.

MyFICO (4/13) EQ score 733 CK TU score 6/13 754 FCR EX 4/13 736

CU overdraft protection CL $0/$500 Freedom $0/$1500 CSP $0/5000 BofA 123Cash Reward $700/$3000 C1 plat $0/1250 PP BML $400/$950 Amex BCE $0/$3000 DISC IT: $231/5500
Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
0

Re: Please advice, is it right thing to decrease UTL?

I think I might have misunderstood you. Are you transferring CL from one BofA card to another boxes card?
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Regular Contributor
SRAGS
Posts: 163
Registered: ‎07-30-2009
0

Re: Please advice, is it right thing to decrease UTL?

My equiries in last   6 months is one...

 

in last     12 months   2 Enquiries..    One enquiry is for bank of  america credit lmit   increase on visa siggy card .  another is penfed membership. ( Not credit card.)  iam assuming this not hp from penfed.. becuase i just opened membership and did not apply for any of their products.

 

My income is  92000 per annum.

 

thanks.

Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
0

Re: Please advice, is it right thing to decrease UTL?

I think you should pay down BofA, then ask for CLI. Wait for new CL to report, then apply for bce. Keep your overall util below 10% and you should be okay.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Regular Contributor
SRAGS
Posts: 163
Registered: ‎07-30-2009
0

Re: Please advice, is it right thing to decrease UTL?

iam transfering   bank of visa sigg card.... 10,000   limit   to bank of america platinm card.  which is carrying balance 6999   out of 12500..  i want to trasfer 7500 from visa signature to platinum..  ..so that my utilization comes down.. 

 

As visa sigg is charge card... it won't report credit limit....  only reports higher balance..    so want to trasfer 7500  to platinum.

Valued Contributor
FinStar
Posts: 5,319
Registered: ‎10-21-2012
0

Re: Please advice, is it right thing to decrease UTL?


SRAGS wrote:

Hello...

 

Please help me...

 

My  Credit file is excellent... no baddies, no lates..... My previous scores one month back  equifax fico 705, transunion 708, credit sesame 749.(may 4th)  Lst month my utilization is 12000.   one recent enquiry.

 i have auto loan at dcu  1.99 percent     which is in good standing... balance on auto loan is 17000.

Mycards...

 

DISCOVER  8500    0

BOA VISA SIG   10,000  0

DCU  PLATINUM  10,000    UITLIZATION 2600

CITI  PLATINUM    6200     0

CITI THANK PREFERRED  4500  0

CAPITAL ONE BESTBY     5000  0

BANK OF AMERICA   12500     UTILIZATION   6999.

 

In another   10 days...  iam getting 2500  ... i will be paying off dcu or i will pay bank of america card.

 

Right now.. iam thniking of  increasing limit on bank of america card by 7500  ....with out hp  ... by decreasing limit on bank of visa signature card..which is carrying 10,000 limit.

 

Is wise thing to do?   As utl on bank of america card right now is almost 55%...  by increaing its lmiti  from 12500 to 20000.... is good idea or not and that too with out sp or hp.

visa siggy   is charge card.. is not reporting any balance... it noly reports highest balance...my last hightes blance is 4500 one year back..  10.000 on that with out reporting balance is no use......

 

Ur suggestions please..  just want to bring those utl s below  10 percent and want to apply for american express bce or bcp.    .

 


If you are concerned about the utilization on a specific tradeline, why not use the proceeds to pay down the $6999?  This should bring the utilization on that BofA CC to roughly 35% - still not optimal, but better than 56%.  Shifting your CLs is also another strategy if you were using the proceeds for paying off DCU, however, at the end of the day, your overall utilization will still be the same across all revolving lines (excluding the non-reportable CL for your BofA Sig CC).

 

If you are doing this to leverage additional credit, then you are not doing yourself a favor.  Paying off debt before incurring additional credit is the best strategy.  Keep in mind, lenders can see the shift on your CLs/High Credit, even if the BofA Sig CC limit is not visibly seen on your file... it is still coded as a revolving TL/flexible SL, unlike an AMEX charge card.

Valued Contributor
lg8302ch
Posts: 2,679
Registered: ‎11-13-2012
0

Re: Please advice, is it right thing to decrease UTL?

First I think it would be better to pay down debt than increase CL. Did you check if you BofA cards are reporting CL? Both of my BofA cards do NOT report the CL and only show highest balance ever reported. Last month I did a manual calculation and the result was amazing... the util remained the same leaving out BofA or taking a maxed out CC into consideration. I decided that I will never ask for a CLI on a BofA Siggy because it seams completely useless to me ... got approvals even over the internal limit and util did not get calculated as maxed out. Shifting around would probably only make sense from a Siggy to a Platinum Plus but certainly not the other way around and also not between Siggy cards. Maybe others can look at their BofA cards and see how it works for them. 

FICO® EQ 784 (as of today) - TU 771 (07/25) * Fako EX 789 (09/02 - CS) * last app 06/01/14 * INQ last 2 yrs TU: 5, EX: 7, EQ: 7


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