Spiking Utilization to Trigger Targeted Offers

[bribro]

As a general rule, I like to keep my individual and aggregate credit utilization under 10-20%, since you never know when you'll want/need to apply for credit. However, I've always wondered if having large spikes in usage/utilization might increase your likelihood of receiving targeted offers. I suspect the answer is yes, although it may not trigger the types of offers you want (e.g. 0% APR balance transfers offers instead of extra bonus point offers).

Anyone have any insight?

[john398]

I always have more offers with lower UTIL, I am not sure why it would be otherwise

[Exonumist]

I don't really notice a difference with utilization, however when ever I have applied for something all the other banks have gone crazy for the next few weeks sending me offers. Other then that I just get a few letters a week mainly from Wells Fargo, BoA, and Citi. 

[bribro]

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@john398 wrote:

I always have more offers with lower UTIL, I am not sure why it would be otherwise

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I'm guessing some lenders target people with high utilization, hoping to get them to balance transfer and start paying interest to them. I'm more curious about the demographic that CCC's target for big sign-up bonuses though.

[bribro]

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@Default4 wrote:

I don't really notice a difference with utilization, however when ever I have applied for something all the other banks have gone crazy for the next few weeks sending me offers. Other then that I just get a few letters a week mainly from Wells Fargo, BoA, and Citi. 

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Thanks for the data point. I just opened a couple of new accounts in the past few weeks, so I'll keep my fingers crossed for something interesting in the mail. All I've been getting lately is the same $100-$250 offer for a Citi Simplicity card and the occasional BofA offer. Citi sends me something literally 2-3 times a week.

[CreditScholar]

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@bribro wrote:

As a general rule, I like to keep my individual and aggregate credit utilization under 10-20%, since you never know when you'll want/need to apply for credit. However, I've always wondered if having large spikes in usage/utilization might increase your likelihood of receiving targeted offers. I suspect the answer is yes, although it may not trigger the types of offers you want (e.g. 0% APR balance transfers offers instead of extra bonus point offers).

Anyone have any insight?

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I get quite a few targeted offers (including some very large/big ones), and my util is around where yours is. I rarely apply for new cards though, so I'm not sure if the stability of my credit profile is playing a role or not.

I do charge a fair bit and always PIF after the statement cuts, not before (unless I'm trying to drop my util the month before a planned app). That may make my util appear higher than it actually is at any given time.

[Open123]

This isn't scientific by any stretch, but when I cancelled my personal Plat, I allocated some of that spending onto credit cards (Ritz, SPG, and CSP) causing my Utility to be on average considerably higher than it had been.

Could be a coincidence, but I suddenly started receiving a plethora of balance transfer 0% promos and low fee balance transfer checks from my unused cards, such as Barclay, Citi, US Bank and Discover.  Interestingly enough, I had never received such offers from Chase or Amex, which I presume is because they were the cards I predominantly used once I've met the other's spending requirments to capture the sign-up bonus.

[CreditScholar]

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@Open123 wrote:

This isn't scientific by any stretch, but when I cancelled my personal Plat, I allocated some of that spending onto credit cards (Ritz, SPG, and CSP), my Utility was on average considerably higher than it had been when I used the charge card more.

Could be a coincidence, but I suddenly started receiving a plethora of balance transfer 0% promos and low fee balance transfer checks from my unused cards, such as Barclay, Citi, US Bank and Discover.  Interestingly enough, I had never received such offers from Chase or Amex, which I presume is because they were the cards I predominantly used once I've met the other's spending requirments to capture the sign-up bonus.

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Speaking of the Ritz card, did you ever come to a decision as to whether or not you're going to keep it? Last I remember, you were still debating it since you found it to be close to a wash.

[Open123]

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@CreditScholar wrote:

Speaking of the Ritz card, did you ever come to a decision as to whether or not you're going to keep it? Last I remember, you were still debating it since you found it to be close to a wash.

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I've decided to keep it, since the Marriott Gold seems like something I could use, especially since I'm going to spend $10K at the Ritz regardless.  

However, inspired by the last thread where we discussed this, I am tempted to apply for a Marriott just for the additional points; but, I'm not sure if that's a good idea.  With so many recent Chase cards, I'd be really pushing it.  Chase is important enough where I don't want to push the envelope too far with them.

[CreditScholar]

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@Open123 wrote:

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@CreditScholar wrote:

Speaking of the Ritz card, did you ever come to a decision as to whether or not you're going to keep it? Last I remember, you were still debating it since you found it to be close to a wash.

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I've decided to keep it, since the Marriott Gold seems like something I could use, especially since I'm going to spend $10K at the Ritz regardless.  

However, inspired by the last thread where we discussed this, I am tempted to apply for a Marriott just for the additional points; but, I'm not sure if that's a good idea.  With so many recent Chase cards, I'd be really pushing it.  Chase is important enough where I don't want to push the envelope too far with them.

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How many new cards have you had with them recently? And I agree with not pushing Chase.

Along with Amex, they're the other lender any heavy spender/rewards enthusiast simply cannot afford to lose. All other lenders are expendable (some moreso than others).