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Member
kitm
Posts: 17
Registered: ‎01-14-2013
0

High utilization/Credit limit increase

I currently have a high utilization rate on my credit cards and it's the only thing negatively affecting my credit score. It's at 85% total, and individually, the worst are at around 95%. I want to ask for a credit limit increase to help my utilization rate, but I don't want to request it and have it denied and have a hard inquiry on my report. What can I do to boost my chances of having the credit limit increase approved? Is there a certain percentage I should reach before doing the request?

 

The other reason I want an increase is that I'm hoping to add my husband as an authorized user to a couple of cards to help increase his score.

 

 

Frequent Contributor
shols44
Posts: 397
Registered: ‎11-03-2012
0

Re: High utilization/Credit limit increase

Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC. 

 

 


Starting Score: 501
Current Score: 706 EQ,TU 689,EX 686
Goal Score: 720

Moderator
pizzadude
Posts: 9,205
Registered: ‎01-28-2010
0

Re: High utilization/Credit limit increase

 

I agree that it's going to be tough to get a CLI with your current utilization maxed.   Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Member
kitm
Posts: 17
Registered: ‎01-14-2013
0

Re: High utilization/Credit limit increase


shols44 wrote:

Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC. 

 

 


Thank you for the completely useless information. I didn't post here to be insulted and lectured.

 

I've already acknowledged that the utilization was high and that I'm paying it. I'm not looking for information on how to get and maintain a good credit score by keeping a decent utilization rate. I was hoping someone would know what what percentage it would be less risky for me to request an increase. Or if there are any other factors that would help.

 

As I've mentioned, I'm not looking to get an increase so I can spend more. I want the increase so my utilization would lower faster and to help boost my husband's credit score.

 

Member
kitm
Posts: 17
Registered: ‎01-14-2013
0

Re: High utilization/Credit limit increase


pizzadude wrote:

 

I agree that it's going to be tough to get a CLI with your current utilization maxed.   Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.


I understand it is tough to get a credit limit increase with my high utilization rate, and I am paying it down as quickly as possible. But at what point is it ok to ask for the increase?

 

I've already added my husband as an authorized user, but I think it's too soon for it to be reported to on his credit report. I've added him on a card with about 50% utilization and hoping it help his credit score. He currently has no accounts with revolving balances, a few deliquencies, and at least two accounts in collections. It would be the oldest account on his report, and one with a clean payment history.

 

 

Moderator
pizzadude
Posts: 9,205
Registered: ‎01-28-2010
0

Re: High utilization/Credit limit increase


kitm wrote:

pizzadude wrote:

 

I agree that it's going to be tough to get a CLI with your current utilization maxed.   Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.


I understand it is tough to get a credit limit increase with my high utilization rate, and I am paying it down as quickly as possible. But at what point is it ok to ask for the increase?

 

I've already added my husband as an authorized user, but I think it's too soon for it to be reported to on his credit report. I've added him on a card with about 50% utilization and hoping it help his credit score. He currently has no accounts with revolving balances, a few deliquencies, and at least two accounts in collections. It would be the oldest account on his report, and one with a clean payment history.

 

 


Well it's really hard to know.....just due to the fact that creditors have different policies regarding their CLIs.    I'd think that you'd want to be less than 50%, at least, before you ask for an increase....

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Member
kitm
Posts: 17
Registered: ‎01-14-2013
0

Re: High utilization/Credit limit increase


pizzadude wrote:


Well it's really hard to know.....just due to the fact that creditors have different policies regarding their CLIs.    I'd think that you'd want to be less than 50%, at least, before you ask for an increase....

 


 

Darn, I was hoping to be able to do it sooner. Anybody familiar with Bank of America's or Capital One's policies?

 

Valued Contributor
beb86
Posts: 1,117
Registered: ‎10-31-2011
0

Re: High utilization/Credit limit increase


kitm wrote:

shols44 wrote:

Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC. 

 

 


Thank you for the completely useless information. I didn't post here to be insulted and lectured.

 

I've already acknowledged that the utilization was high and that I'm paying it. I'm not looking for information on how to get and maintain a good credit score by keeping a decent utilization rate. I was hoping someone would know what what percentage it would be less risky for me to request an increase. Or if there are any other factors that would help.

 

As I've mentioned, I'm not looking to get an increase so I can spend more. I want the increase so my utilization would lower faster and to help boost my husband's credit score.

 


This is info pulled from the fico high achievers thread....best chance for a CLI is UTIL <30%. I understand you are new here and the members here will tell you info based on what was posted and more importantly real life experiences. The above poster was just trying to provide helpful advice for your question/situation. What are your current cards and Util on them...if you have any GE backed cards with low UTIL you have good chances at a CLI

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Frequent Contributor
_jb_
Posts: 311
Registered: ‎01-16-2013
0

Re: High utilization/Credit limit increase


kitm wrote:


Darn, I was hoping to be able to do it sooner. Anybody familiar with Bank of America's or Capital One's policies?


I can't speak for BoA, but I know from experience (last night) that Capital One does a soft pull for CLI (and explicitly explains so prior to doing it) so it can't hurt to try sooner than <50% utilization (UT? - not good with all of the acronyms here yet..) if you feel like it will help your situation sooner.


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Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: High utilization/Credit limit increase

I would have to say that below 50% you would stand a chance and below 30% a better chance.  It's always a YMMV type of thing.  Also when trying for a CL they ask your income, so improvement in that area might make your chances better.  I wish you the best of luck.


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