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Low CLs

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UnderEstimated
Contributor

Low CLs

I have 4 credit card accounts open.  1 with a high CL (over $6K), 1 AMEX Gold, and 2 other cards that have credit limits of well under $500.  One of them has a credit line of $200 which is pointless to me, since 3 tanks of gas and it's maxed out.  I've tried numerous times for them to increase the CL, but they refuse time and time again, while I've had no problems with my credit.  As of right now, the card has just sit with a $0 balance for the past few months.  Should I just leave it open?  Close it?  Just wait for a CLI?
 
Thanks.
Message 1 of 16
15 REPLIES 15
Anonymous
Not applicable

Re: Low CLs

i would just leave the $200 with a very small activity per month. Buy yourself lunch once a month on this card and pay it off. Hope you are not paying annual fee on this though.
 
Message 2 of 16
UnderEstimated
Contributor

Re: Low CLs

No annual fee...  The only one I pay for is my AMEX, but since I charge a couple thousand a month on it, the rewards greatly outweigh the annual fee.
Message 3 of 16
Anonymous
Not applicable

Re: Low CLs

okay. i mean..$200 limit isnt really doing much to your credit score but it is all about the history of how good have you been on the payment...If your history on this account is excellent and older...then i would just leave it open.
Message 4 of 16
Anonymous
Not applicable

Re: Low CLs



UnderEstimated wrote:
No annual fee...  The only one I pay for is my AMEX, but since I charge a couple thousand a month on it, the rewards greatly outweigh the annual fee.



How much is the AmEx AF?  Thanks.
Message 5 of 16
UnderEstimated
Contributor

Re: Low CLs

The fee last year was $90, but now it's $110.  It may seem like a lot, but I get so many points that it easily pays more than the cost.  Not to mention, their customer service is much better than my other cards.
 
As for the $200 CL account, that account is a little over 2 years old...  I guess I'll just keep it open, but I've always heard it looks bad when lenders see that a credit card company only "trusts" you with $200.
Message 6 of 16
Anonymous
Not applicable

Re: Low CLs



UnderEstimated wrote:
The fee last year was $90, but now it's $110.  It may seem like a lot, but I get so many points that it easily pays more than the cost.  Not to mention, their customer service is much better than my other cards.
 

Thanks, I guess someone thought I asked a dumb question because they rated it a "one". Smiley Surprised  Glad you're happy with the card.
Message 7 of 16
Anonymous
Not applicable

Re: Low CLs

That little 200 cl card wouldn't be from my best friends at Orchard Bank, now would it?  Is it a secured card?  if so, you will NEVER seen an increase in your CL.
 
The people on here who jump to OC's defense are talking about the unsecured card.  The secured card sux.  Dump it now if you can't get them to wavie the annual fee.
Message 8 of 16
Anonymous
Not applicable

Re: Low CLs


@UnderEstimated wrote:
I have 4 credit card accounts open. 1 with a high CL (over $6K), 1 AMEX Gold, and 2 other cards that have credit limits of well under $500. One of them has a credit line of $200 which is pointless to me, since 3 tanks of gas and it's maxed out. I've tried numerous times for them to increase the CL, but they refuse time and time again, while I've had no problems with my credit. As of right now, the card has just sit with a $0 balance for the past few months. Should I just leave it open? Close it? Just wait for a CLI?
Thanks.





What are your FICOs? If you're still down in the 500s, getting CLIs will likely be problematic. Not impossible, but you will have to build up a longer positive history with each credit card company before they will trust you with a CLI or an unsecured card.

Any baddies on your account, like charge-offs, collections, or 90 days or more past due, during 2005 or later? Recent baddies can make a credit card company think twice about increasing your CL or graduating you from secured to unsecured.

You probably never will get a high limit on nichy charge cards like gas station cards. Unless you're a long-haul trucker, you're simply not going to go through $1000 in gas and munchies.

If you do have a secured card, what you're looking for isn't a higher CL, but rather graduation (changing the card from secured to unsecured). Graduation usually comes with a CLI...I got the BofA "99/500" card, and it is being graduated this month with a $1000 CL.

My experience and that of others on these boards has been that the best way to achieve graduation of a secured card, or a credit line increase on an unsecured card is to:

1) avoid all baddies...don't be late or default with any other creditor.

2) Keep a balance on your card that is greater than zero (in other words, don't sockdrawer the card like you did with your $200 gas card), but less than 10% of your credit line. You can do this even with a low-limit card. My balances on my Orchard and CapOne cards when they are next reported will be $9 and $2, respectively, which is around 3% of utilization on both.

3) Make all payments on time.

4) Bug the card companies for graduation/CLI once every six months or so.

So take that $200 card out of the sock drawer. Don't buy gas with it though...buy a Coke or a bag of Doritos. That way you will have a balance, but stay well under 10%. That puts activity on the card. Remember that it is the wise management, not the avoidance, of credit that builds your FICO score.

Message Edited by TheNewWorldMan on 05-16-2007 02:49 PM
Message 9 of 16
UnderEstimated
Contributor

Re: Low CLs

Here's the case, I'm 20 years old so all of my accounts have under 3 years of credit history.  My history contains those credit cards, all of them are unsecured, 1 car loan of $15,900 paid as agreed & in full, and 1 car loan of $28,000 that is currently still open and paid as agreed.
 
My FICO scores with as of this month are in the 650s with TransUnion & Experian but 626 with Equifax. 
 
No baddies on my report, utilization is around 18% right now (working towards 9%), and still working on improving those scores.  When I get denied credit, or denied for a lower interest rate, the primary reason I hear is insufficent credit history.
Message 10 of 16
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