cancel
Showing results for 
Search instead for 
Did you mean: 

What should be my optimal strategy?

Established Member

Re: What should be my optimal strategy?

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?

Message 11 of 52
Valued Contributor

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!

 


Quicksilver WMC $20k | JCPenney Platinum $10k | Drive for Five $800 | Freedom VS $5k | TD Cash VS $5k | CFU VS $14.8k | Blue Sky $13.7k | IT $28k | SavingStar $14.8k | BCE $11.3k | Macy's AMEX $7.2k | BuyPower WEMC $7.5k | CSR VI $13.3k | Diamond Preferred $6.5k FICOS: EX 775 EQ 764 TU 759 VantageScore 3.0: EX 759 EQ 757 TU 762
Message 12 of 52
Blogger

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.

Message 13 of 52
Established Member

Re: What should be my optimal strategy?

+1

Message 14 of 52
Regular Contributor

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...
Message 15 of 52
Blogger

Re: What should be my optimal strategy?

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.

Message 16 of 52
Regular Contributor

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...
Message 17 of 52
Blogger

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.

Message 18 of 52
Regular Contributor

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...
Message 19 of 52
Valued Contributor

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
12/2014 750+
3/2017 780+
5/2017 800+
Message 20 of 52