So I have a theory as far as CL Increases on CC's go...

[Anonymous]

Please note, I have no first hand experience, just a guy looking to fix  his credit and be as knowledgeable as possible. 

From people on here and people I know... I hear its a good thing to PIF you cc's. However, I didn't understand why a bank would want to increase your credit limit if they weren't making interest on their money.

I realized that just for using the card, there is a fee charged to the merchant that gets spread out through the different providers. The more you use the card, the more they make.. even if you PIF. 

So the more you use your card and show that you're paying it off like it's nothing... the more inclined the CC issuer would be to give you a CLI.

Is this how it works?

[Creditaddict]

yes

[MarineVietVet]

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@Anonymous wrote:

Please note, I have no first hand experience, just a guy looking to fix  his credit and be as knowledgeable as possible. 

From people on here and people I know... I hear its a good thing to PIF you cc's. However, I didn't understand why a bank would want to increase your credit limit if they weren't making interest on their money.

I realized that just for using the card, there is a fee charged to the merchant that gets spread out through the different providers. The more you use the card, the more they make.. even if you PIF. 

So the more you use your card and show that you're paying it off like it's nothing... the more inclined the CC issuer would be to give you a CLI.

Is this how it works?

---

I respect your opinion and your theory but I'd rather miss out on any future CLI's if it means paying the CCC's interest. I can only speak for myself though.

Just my 2.5 cents worth. 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[laz98]

hey, how did you get 2.5 cents???  i'm getting robbed here...

[MarineVietVet]

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@laz98 wrote:

hey, how did you get 2.5 cents???  i'm getting robbed here...

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Inflation rears it's ugly head!!

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Wolf3]

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@MarineVietVet wrote:

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@Anonymous wrote:

Please note, I have no first hand experience, just a guy looking to fix  his credit and be as knowledgeable as possible. 

From people on here and people I know... I hear its a good thing to PIF you cc's. However, I didn't understand why a bank would want to increase your credit limit if they weren't making interest on their money.

I realized that just for using the card, there is a fee charged to the merchant that gets spread out through the different providers. The more you use the card, the more they make.. even if you PIF. 

So the more you use your card and show that you're paying it off like it's nothing... the more inclined the CC issuer would be to give you a CLI.

Is this how it works?

---

I respect your opinion and your theory but I'd rather miss out on any future CLI's if it means paying the CCC's interest. I can only speak for myself though.

Just my 2.5 cents worth. 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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I think OP point was that you don't need to pay interest for CCC to make money.   They make money on every transaction so high usage should help get higher CL. even if you always PIF.  

[Anonymous]

Right. I have never paid any interest charges and companies keep upping my limits. I spoke to a local merchant and he said it cost him 35 cents just to swipe an amex card, and 3-4% on top of that.

Card companies make more money if you charge more off. The more you charge and pay off, the more they make. If they start to see you slip, they'll charge you some interest and drop your line to avoid risk of a default.

[MarineVietVet]

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@Wolf3 wrote:

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I think OP point was that you don't need to pay interest for CCC to make money.   They make money on every transaction so high usage should help get higher CL. even if you always PIF.  

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I knew that. I did. I knew that.   

I just read it wrong. That's my story at least.

But IME with my Discover that doesn't hold true. Last year I charged right at $30,000 on my Discover but for the first time in many years I didn't get a CLI.  Perhaps they'll reward me next year. 

As with many things having to do with credit YMMV.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[ngerasimatos]

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@Anonymous wrote:

Please note, I have no first hand experience, just a guy looking to fix  his credit and be as knowledgeable as possible. 

From people on here and people I know... I hear its a good thing to PIF you cc's. However, I didn't understand why a bank would want to increase your credit limit if they weren't making interest on their money.

I realized that just for using the card, there is a fee charged to the merchant that gets spread out through the different providers. The more you use the card, the more they make.. even if you PIF. 

So the more you use your card and show that you're paying it off like it's nothing... the more inclined the CC issuer would be to give you a CLI.

Is this how it works?

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Banks also make money on transaction and processing fees. The more you swipe, the more they make.