Would you wait 6 months to ask for a CLI after first getting a new card?

[galahad15]

Hi, the most recent card that I added to my collection was a PACU Premier Privileges Rewards MC, which is now my current favorite card b/c of the low, fixed-rate APR of 7.50% F.  However, I would like to try to work on increasing my CL, currently at $2k.  Since the card was first opened exactly 2 months ago in Sept., would you recommend waiting 4 more months so I can get to the first 6 months of using the card?  Or would it be worth a try to ask for a CLI now?  Any thoughts or advice please?

[Anonymous]

Unless something has changed dramatically on your report ie. inqs falling off, score going up 20+ points, or your income went up significantly. I would personally wait till 6 months or even a year. IME CUs are pretty conservative and would want a longer history. On the other hand your scores are great so you could try, but if they deny thats just another inq..

[austinguy907]

It all really depends on the lender and your strategy plans for the future.

Keep in mind with most CU's you're looking at a HP for each CLI attempt.  Considering the scores in your signature and the result of the approval I'm guessing this one in particular will be a slow grower as they seem to be very conservative.

If you're looking to increse your overall CL you are prime to add some more cards that can do so.  With EX 777 you should seriously consider AMEX BCE/ED or BCP/EDP cards for the growth potential and hit up Discover for CLIs every other month.  Also, with all of your FNBO card you should be seeing SP CLIs every 4 months according to other threads.

[Anonymous]

I guess my question would be why your CU started you with a $2k limit to begin with?  Your scores are excellent and almost all of your other credit lines are many times the $2k limit that they gave you.  Either they are super restrictive with their SLs or there's something else going on.  I'd put in a few calls to the CU (talking to different people in the credit department) and inquire as to why your SL was so low based on your profile.  You may be able to get them to recon your SL, or I suppose it would be considered a CLI at this point... but the squeaky wheel gets the oil so I say put a little pressure on them and see what happens.

[galahad15]

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@Anonymous wrote:

I guess my question would be why your CU started you with a $2k limit to begin with?  Your scores are excellent and almost all of your other credit lines are many times the $2k limit that they gave you.  Either they are super restrictive with their SLs or there's something else going on.  I'd put in a few calls to the CU (talking to different people in the credit department) and inquire as to why your SL was so low based on your profile.  You may be able to get them to recon your SL, or I suppose it would be considered a CLI at this point... but the squeaky wheel gets the oil so I say put a little pressure on them and see what happens.

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When I was applying for the card over the phone, the CU CSR taking my application asked me how much credit I needed or was looking for.  At the time, I was trying to err on the side of caution as my primary objective was to be able to qualify for the lowest-available APR regardless of the CL, and so I asked them for a $2000 SL, so AFAIK, they weren't super-restrictive in that sense.  But now that the initial objective of obtaining the lowest APR has been achieved, ideally I would like to explore the opportunity of obtaining a CLI, on that card.

[805orbust]

Wow interesting strategy.  Can't argue at all with that interest rate! 

[austinguy907]

You get the APR based on your SCORE with CU's not the amount of the CL.  So, hindsight is 20/20 at this point and lesson learned.  Now it makes a little more sense to push the limit upwards with them to compete with your other cards.  I would advise sending them a message to see what their CLI policy is on new accounts or when you're eligible for one.  It will be a HP either way most likely with any CU.  

[galahad15]

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@austinguy907 wrote:

You get the APR based on your SCORE with CU's not the amount of the CL.  So, hindsight is 20/20 at this point and lesson learned.  Now it makes a little more sense to push the limit upwards with them to compete with your other cards.  I would advise sending them a message to see what their CLI policy is on new accounts or when you're eligible for one.  It will be a HP either way most likely with any CU.  

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I understand, thanks for the helpful info.  I know that there were some cards that I apped for in the past that I was either denied for, barely qualified for, and/or only approved on recon, and given a very small initial SL on, that I was able to get future CLIs on.  Also some cards that I was approved for started with a small CL that later grew substantially -- for instance, the SL of my FNBO Amex that I received 1.5 years ago was $2,200, IIRC, and the CL is now $16,900 today.  That's why I wanted to be cautious with not asking for too much credit up-front at the beginning.  It is good to know for next time that I should not be super-shy about asking for higher a SL, again thanks.

[austinguy907]

It's understanable based on your prior experience.  CU's will tend to counter offer if they feel the amount is too high.  It's best to shoot for the moon when opening as they'll HP for each increase aside from the normal 1 to 2 year anniversary auto CLI they sometimes offer.  Sometimes they'll be more apt to giving you a CL based on the DTI formulas and may be as high as 50% of your annual income.  It really depends on the CU though and how they want to run their numbers.

[Anonymous]

I agree with some other posters

The strategic move to secure the APR you coveted is fine...good work BTW

Anyway, unless the CU uses the same pull for an extended period ( think 90 days like PenFed) the chances of getting a CL recalculated sans a new HP is most likely a non starter.

In addition because the account is so brand new, just on GP (general principle) a lot of institutions (CUs, banks, whatever) are just NOT going to re-up on a new-to-them account....just as a decent disciplined business practice, many UW departments are just going PASS at the opportunity to look foolish... extending MORE credit to an account that was JUST vetted for said amount.

That's just CYA and corporate life (I can tell you, that's how it would be seen internally during a manual review. I, nor one of my former colleagues would want to go OUTSIDE protocol to INCREASE a CL, thus Liability...just for poo poo n giggles when the SAFE option...is to ' just WAIT and see how the account performs a bit FIRST...ie kick that can down the block a little)

The good news is after a few months maybe after the next AR, you shouldn't have a problem getting a nice bump (again that's a new pull a new evaluation not, basically an override...a much safer, easier to justify decision to attach your UW # to...@ that point some payments have been made AND there is a CR with a credit profile to hang one's hat on as to WHY the new CL is warranted

The APR is already set, generally that isn't up for debate for a year anyway...so the rep is protected from any egg or red tape coming from that side of the fence


You give a reason (spend, a little history) and the UW department will bounce you UP next go around


Good luck