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Established Member
Posts: 32
Registered: ‎11-20-2012
0

Re: What should be my optimal strategy?

[ Edited ]

I have a card with $5,500 limit. If I apply for a new card, wouldn't they give me a limit higher than $5,500 since I already have a card with this limit?

Valued Contributor
Posts: 1,910
Registered: ‎11-17-2012
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Re: What should be my optimal strategy?


hussain99 wrote:

I have a card with $5,500 limit. If I apply for a new card, wouldn't they give me a limit higher than $5,500 since I already have a card with this limit?


Not necessarily...every creditor is different. Some consider giving CL that match or counter higher than certain cards on your report, but most of the time it's an algorithmically calculated limit based on aspects on your report or simply just from a CS/income situation.

 

Places like NFCU or USAA will give you a very inflated limit compared to your reports, but other lenders like CapOne, Chase, Discover, wouldn't even consider that type of limit based on those same stats!

 

Capital One Quicksilver World Mastercard $20k | JCPenney Gold $10k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $13.7k | Discover IT $13k | SavingStar American Express $14.8k | American Express BCE $11.3k

FICOS: EX 759 EQ 704 TU 754 VantageScore 3.0: EX 746 EQ 747 TU 747 Credit Sesame (EX) 756 Credit.com (EX) 784
Blogger
Posts: 3,360
Registered: ‎10-19-2012
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Re: What should be my optimal strategy?

I think you can achieve the goal with 5 application sprees, timed 6 months apart, starting today, before your Southwest card gets reported. For the first one, apply for the cards that don't offer high rewards so you can be approved with higher initial CL's. For the later ones, once you have already added high CL cards into your portfolio, you can shoot for better cards. Definitely throw Amex in the mix for their 61-day 3x CLI as well.

Established Member
Posts: 32
Registered: ‎11-20-2012
0

Re: What should be my optimal strategy?

[ Edited ]

+1

Regular Contributor
Posts: 197
Registered: ‎07-26-2012
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Re: What should be my optimal strategy?

HiLine,

 

Can you please tell why should I apply for these 5 cards before my southwest card is reported?

 

Secondly, which banks/credit unions in the market match the highest credit limit on your current report? Can you please specifically highlight which 5 credit cards are the best bet for me?

 

Thanks

Walmart Discover $10,000... Chase SW $8,500... Freedom $7,000... CSP $6,000... Amex Delta $3,000... Amex BCP $2,000... Local CU $1,500...
Blogger
Posts: 3,360
Registered: ‎10-19-2012
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Re: What should be my optimal strategy?

[ Edited ]

cowboyguy,

 

Every time you open a credit card, you gain debt allowance, which is not a good sign to creditors. Often when someone is in financial troubles, the person would try to accumulate as much debt as possible, then default. Creditors perceive new credit accounts as risk. If you apply before your new card gets reported, no one will be informed of the new card yet.

 

And notice that I said 5 application sprees, not 5 applications. You apply for multiple cards in each application spree. Sorry if I confused you.

 

Regarding your second question, I honestly have not spent much time investigating particular lenders' tendencies to match the highest credit limit from the borrower's portfolio. But many posters on here can give you their anecdotal information.

Regular Contributor
Posts: 197
Registered: ‎07-26-2012
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Re: What should be my optimal strategy?

HiLine,

If I apply for the new card before my Southwest is reported, how would that serve my purpose of getting high limits initially? Since they would consider my current Commerce Bank crd having $500 limit, wouldn't they give me a small limit & it will then take me a long time to get CLIs?
Walmart Discover $10,000... Chase SW $8,500... Freedom $7,000... CSP $6,000... Amex Delta $3,000... Amex BCP $2,000... Local CU $1,500...
Blogger
Posts: 3,360
Registered: ‎10-19-2012
0

Re: What should be my optimal strategy?

If some creditor already gave you such a high credit limit, chances are you'll get approved for similarly high limit cards. Since today is a new month, you also have one more month of credit history. Just make sure to avoid cards that are generally regarded as having tough criteria.

Regular Contributor
Posts: 197
Registered: ‎07-26-2012
0

Re: What should be my optimal strategy?

What you're saying makes sense. I'm now just researching on those cards which do not have tough criteria & which are generous in giving high initial credit limits.

Anyone?
Walmart Discover $10,000... Chase SW $8,500... Freedom $7,000... CSP $6,000... Amex Delta $3,000... Amex BCP $2,000... Local CU $1,500...
Valued Contributor
Posts: 2,982
Registered: ‎02-09-2012
0

Re: What should be my optimal strategy?

Guys, nobodies spiddy-senses went off within the OP?

 

$900 in TOTAL CL, and then hits us with SWA Siggy Visa with $8500 CL?!!?!?

 

This is a train wreck that I'll have to stop from watching.

5/2012: 560 credit scores across the board and $500 secured CC
12/2014: 750+ scores across the board and $80k in revolving credit

Get those baddies removed!!!
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