@longtimelurker wrote:
@Trivolve wrote:
Don't EVER volunteer to reduce your limit on your chase cards. From what I read in some old threads, if you ask to reduce your CL, they will put a note on your file and you will never ever get any CLI again.
While that might be true, it sort of doesn't make sense. The people who do this (Open123 for example) aren't interested in CLIs, they want sign up bonuses. Obviously if CLIs are your goal, doing a voluntary CLD would be a step in the wrong direction.
Right, the strategy you adopt should be determined entirely on what stage you are in your credit history and your goals.
If your goal is to carry a larger balance with low or promo rates, then don't request CLDs and apply for too many new cards. In this case, the object should be to reduce HPs, have a stable CR history, and increase your aggregate and average CLs to carry your balance.
Conversely, if the goal is to reap and harvest sign-up bonuses, the goal would be auto approval to reduce manual reviews of your CRAs, since they'll invariably contain a higher number of HPs, new accounts opened and closed, and general credit seeking behavior associated with higher risk profiles. In this case, by keeping aggregate CLs low and spreading HPs prudently amongst the 3 CRAs, you can often get an auto-approval, even for multiple cards for the same lender.
In general, issuers tend to tolerate credit seeking behavior (3 or 4 cards per quarter purely for bonuses) when your aggregate CLs are lower (below your income), Utility is less than 5% - 10% with PIF, and when there's virtually no default risk. However, when aggregage CLs exceed 2X or 3X income, Utility approaches 30% - 50%, issuers are extremely nervous when they notice any kind of activity (HPs & new accounts).
So, with Chase, if your goal is to increase CLs for utility reasons to carry a balance, don't ever request a CLD from them, since unlike some lenders, it'll require a HP and review to get them back. On the other hand, if you just want to cycle their great bonuses, then CLD to reduce your exposure below their internal aggregate limits will only benefit and make for a smoother card harvesting experience.
Good luck!
*Edited* PS - From experience, as least in years past, once you request a CLD from Chase, they may make a notation that you don't require high levels of CL, which may make it more difficult to request CLIs in the near future.
