cancel
Showing results for 
Search instead for 
Did you mean: 

Ssould I Ask For A Credit Increase or Just Get A New Card???

tag
Anonymous
Not applicable

Ssould I Ask For A Credit Increase or Just Get A New Card???

Hello All!
 
I need some help w/ creedit cards.  I have seven open cards w/ a high credit limit of $8,900.  All of the cards are relatively older and have a relatively high intrest rate 18+%.  I have good credit w/ the scores as follows:
 
EQ=760  (No lates or derog.  Only issue is has not updated my cc balance.  Should have 2% util instead shows 11%.  Will update soon though)
 
TU=745  (No lates or derog.  The score was actually 761 on 4/5/08.  It says that my revolving balance is too high but lists it as 2%.  When I click on the Score Simulator it lists my HELOC in the ballance.  I am not sure why it did this.  It never has before...I am not sure what I need to do.)
 
EX-737  (No lates or derog.  The only issue is that EX lists my HELOC as revolving and that knocks my score down a bit.)  I have disputed this listing w/ EX so we will see.)
 
Available revolving credit is 22k.  Current util is 2% no lates, no derog, etc...  I am in my early thirties and do not have a long credit history as my oldest account was opened in 1999.  I have auto loans that I have paid in full, cc's that show zero balance, two that have a balance just for scoring, and a loc (GEMB) that was paid in full and recently closed on my behalf.  (Stupid TC FAKO advice!) Current Cards are as follows:
 
Citi                         $8900cl  $0.00Bal
Chase/CC             $7500cl  $305.00Bal
Sears/CBSD         $2200cl   $0.00Bal
HSBC/Best Buy    $1900cl   $0.00Bal
HSBC                    $1100cl   $0.00Bal
Applied Bank         $850cl     $0.00Bal
Cap 1                    $650cl     $0.00Bal
 
Hopefully this is enough info. My quesion is if I call the cc companies and ask them for a credit increase and lower rate... One, will they do it?,  Two, will it show as a hard pull or as soft pull?  Also would it just be better to go get a premium card, CAP 1 or AMEX, with a low intrest rate and higher limit?  If the latter is the best option then what card would be the best to get?  Thanks in advance for your help! 
 
Message 1 of 12
11 REPLIES 11
haulingthescoreup
Moderator Emerita

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

First of all, not to argue with you, but why do you want higher credit limits? Do you want higher limits on individual cards, or do you want a higher overall credit limit? The answer to this will help you figure out where you want to go.

I came up with a total of $23.1K CL, which I agree seems low for someone with your scores. This seems like a good time for you to inventory what exactly you want from your credit. Can you use some rewards, either points or cash back, in certain categories? Do you need one big honking emergency card with a high CL? Do you just generally want to have a better credit profile, with higher individual CL's?

Unless you have some extraordinary sentimental attachment, I would think that it's time to let the bottom two cards go, unless they don't have annual fees. And even if they don't have fees, it's possible that their low CL's are dragging your overall credit picture down. (I've read this in various places.) If they are by far your oldest cards, you might want to try to wrestle them up to $1000, but if there isn't much of a time gap between them and the next oldest cards, they might not be worth keeping. Closed accounts are supposed to stay on your reports for ten years after closing, so any history damage would be delayed. If the other accounts were opened soon after these, there might not be any damage in 10 years at all.

What exactly are your Citi and Chase cards? In general, some CC's have built-in ceilings on their CL's, so you need to make sure that you aren't stuck with those. But again, with scores like yours, and especially with your clean history, you ought to be able to get some cards from good lenders with reasonably high CL's that will increase with time.

If you are looking for a non-crazy CCC that gives high credit limits, I would strongly suggest one of the nationally-based credit unions like JFCU (Justice FCU), or possibly one in your area, if they issue high-limit cards. Right now, other than BofA, my high-limit cards are CU cards. The best bet with CLI requests is to ask the CSR whether they will be hards or not, and then hope that they know what they're talking about. Everything I've read about Chase says that a customer-requested CLI will generate a hard, and I've also read the same about Citi, although I've never been harded for a CLI on my Sears Citi card. (They haven't particularly worked, either, lol.) HTH
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 2 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

Opinion..
You odds are better if you cancel the subprimes and apply for a new Prime like Amex. Amex will grant you a high CL upon request to help give confidence to other lenders for future increase. No one likes being the highest CL usually when it comes to CLIs. Amex will take that risk for high credit scores.

But age is a factor too.
Before you cancel please tell us what dates your cards were opened to help us decide.

Most of all... INCOME will be the largest factor when you request a CLI with good credit.

Ultimately you want about what you have with all CLs over $5k. Cap1 is iffy. They might do a CLI for $5k. It's possible.

Just about all CLI requests will hit you with a hard inq!

This doesn't mean much since it was just me, but I could not get any CLIs when I had lower limit cards in the pot. I canceled them and tried for CLIs again and did much better. I consider any subprime to be prime if the CL is over $5k as a keeper.

But canceling credit cards is not usually good for your credit score long term. Sometimes it is good. Depends on the age and other factors. But sometimes what your credit looks like can help you get better credit in turn help your score... Smiley Happy

Message Edited by ilovepizza on 04-06-2008 01:37 PM
Message 3 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

"First of all, not to argue with you, but why do you want higher credit limits? Do you want higher limits on individual cards, or do you want a higher overall credit limit? The answer to this will help you figure out where you want to go.

I came up with a total of $23.1K CL, which I agree seems low for someone with your scores. This seems like a good time for you to inventory what exactly you want from your credit. Can you use some rewards, either points or cash back, in certain categories? Do you need one big honking emergency card with a high CL? Do you just generally want to have a better credit profile, with higher individual CL's?

Unless you have some extraordinary sentimental attachment, I would think that it's time to let the bottom two cards go, unless they don't have annual fees. And even if they don't have fees, it's possible that their low CL's are dragging your overall credit picture down. (I've read this in various places.) If they are by far your oldest cards, you might want to try to wrestle them up to $1000, but if there isn't much of a time gap between them and the next oldest cards, they might not be worth keeping. Closed accounts are supposed to stay on your reports for ten years after closing, so any history damage would be delayed. If the other accounts were opened soon after these, there might not be any damage in 10 years at all.

What exactly are your Citi and Chase cards? In general, some CC's have built-in ceilings on their CL's, so you need to make sure that you aren't stuck with those. But again, with scores like yours, and especially with your clean history, you ought to be able to get some cards from good lenders with reasonably high CL's that will increase with time.

If you are looking for a non-crazy CCC that gives high credit limits, I would strongly suggest one of the nationally-based credit unions like JFCU (Justice FCU), or possibly one in your area, if they issue high-limit cards. Right now, other than BofA, my high-limit cards are CU cards. The best bet with CLI requests is to ask the CSR whether they will be hards or not, and then hope that they know what they're talking about. Everything I've read about Chase says that a customer-requested CLI will generate a hard, and I've also read the same about Citi, although I've never been harded for a CLI on my Sears Citi card. (They haven't particularly worked, either, lol.) HTH"
 
Thanks for the response.  I want a higher limit (around 20k) for emergency purposes.  I also want a lower interest rate than my current cards have.  The lowest interest rate I currently have is 18% and that just plain hurts. lol  I applied for all of these cards when I was in my twenties and had very limited credit history so I took what I could get so to speak.  I really have not needed to use credit cards too much as I have had a very good paying job where I was makink 100k a year.  I in the last few months I have started my own business and am now want a card to rely on if needed until the business can sustain it's self and become profitable.  Prob 6 months or so.
 
The Citi Card is a Diamond Preferred card and the Chase/CC was a card I applied for at a Circuit City, but is a revolving Visa.
 
Thanks for the info about pulls.  It scares me to trust a CSR's advice on pulls!  lol  It really looks like I will get a hard pull for any ci I request.  Sounds like getting a new card would be better.  I am a member of North Island Federal Credit Union, and even had a 26k auto loan through them which I paid off two years early.  I will visit my local branch tomorrow too see what they have to offer.  As far as 86ing the too oldest cards I don't know if that would be a good idea as they are my too oldest cards.  Applied opened in 8/2001 and Cap 1 opened in 9/2001.  The next card opened was the HSBC in 4/02.  I would be afraid to close the cards because I already have a relatively short credit history.
 
I hope I answered your questions.  I again thank you for your time and anxiously await your answer!
Message 4 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

"Opinion..
You odds are better if you cancel the subprimes and apply for a new Prime like Amex. Amex will grant you a high CL upon request to help give confidence to other lenders for future increase. No one likes being the highest CL usually when it comes to CLIs. Amex will take that risk for high credit scores.

But age is a factor too.
Before you cancel please tell us what dates your cards were opened to help us decide.

Most of all... INCOME will be the largest factor when you request a CLI with good credit.

Ultimately you want about what you have with all CLs over $5k. Cap1 is iffy. They might do a CLI for $5k. It's possible.

Just about all CLI requests will hit you with a hard inq!

This doesn't mean much since it was just me, but I could not get any CLIs when I had lower limit cards in the pot. I canceled them and tried for CLIs again and did much better. I consider any subprime to be prime if the CL is over $5k as a keeper.

But canceling credit cards is not usually good for your credit score long term. Sometimes it is good. Depends on the age and other factors. But sometimes what your credit looks like can help you get better credit in turn help your score... "
 
Thanks for your response.  Here are the cards w/ the respective open dates:
 
Citi  (Opened 11/2005)                         $8900cl   $0.00Bal                 
Chase/CC  (Opened 1/2003)               $7500cl   $305.00Bal
Sears/CBSD  (Opened 1/2004)           $2200cl   $0.00Bal
HSBC/Best Buy  (Opened 11/2003)    $1900cl   $0.00Bal
HSBC  (Opened 4/2002)                      $1100cl   $0.00Bal
Applied Bank  (Opened 8/2001)           $850cl     $0.00Bal
Cap 1  (Opened 9/2001)                      $650cl     $0.00Bal

As you can see the Applied and the Cap 1 are the oldest.  I am not sure how that would affect me as the next oldest account I have in a jewlery store installment account opened in 1999 closed in May 2002.

As far as income goes I was highly compensated (100k) up until the last few months.  I have recently started my own business and am just launching it this month.  (Web launch last Friday!)  I do not have income to speak of now but will soon have to pay myself as I am an S Corp. 

Getting all the cards to 5k will be an issue I think.  The applied card is absolute junk and has a 22% apr.  They keep sending me a pre approved ci to bump the card up to $1,100 but want me to pay $200.00 for it!  That card has an anual fee and even costs me if I make an online payment.  I will NEVER use that card again.  Now that I think about it maybe closing that card would not be so bad. Smiley Happy  I don't know about the HSBC card as I have not used it in 3+ years, same w/ the Cap 1 card, and HSBC Best Buy.  Any thoughts on how I sholuld approach this?

Well thanks again for your response.  I would appreciate any advice you can give me!   


Message 5 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

Hi SD. I agree with Hauling and pizza. With your scores you should have some higher limit cards. I especially agree with pizza's suggestion of closing the Applied Bank card. That is one of THE most preditory cards out there. I also had the card, my oldest. But I closed it last October when I received a WaMu Visa with a very nice cl.

I suggest you carefully select which cards you will apply for, and after receiving those cards, close the cards that are costing you money.

The low limit cards like Cap1 and HSBC will, imo, not grow with you, unless you have one of their prime cards.

It's time for some upgrading! Smiley Happy
Message 6 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

1. I would definitely cancel the Applied Bank (Opened 8/2001). Gone..!
2. I would keep the 2 from HSBC. They are helping and not hurting.
3. The Cap1 is not looking good with that credit line. If you cancel the Cap1 card now you will not have a negative change in your credit score until it falls off in 10 years.

After it falls off your credit reports in 10 YEARS you score will drop up to (about) 4 points (or less) for age loss unless they change the scoring formula. Basically it sets your average age back 1 year. But more than likely in 10 years you will have had other new accounts that will avg in to the age factor and reduce the effect of the Cap1 account.

That is very odd that the other companies raised you to $7k and $8k but Cap1 keeps you in super subprime under $1k. I'd demand $5k or cancel it in my opinion. I wouldn't want that credit line as open when you have other prime cards showing.

Low limits on retail cards such as the best buy don't look bad. Maybe later the non retail Visa/Mc HSBC card that you have (assuming it is not retail) you can get that credit line up to $5k. If they are both retail the low limits don't matter as much.

So I'd keep the other cards for the next forever... But dump Applied Bank today and ask for a CLI on CAP1 to $5k if not dump it too. That's my advice. Smiley Happy Ask if they will be willing to raise the credit line for cap1 before they hit you with an inq. If they say no, no point of getting an inq. I ask if they would be willing to raise my CL before I apply. I also ask what they would look for to approve. Then I know if I am wasting an inq or not. If they tell me no lates in 7 years, and I have one, I back out. Smiley Happy Good luck. Keep your other accounts. Smiley Happy
Message 7 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

Hi SD. I agree with Hauling and pizza. With your scores you should have some higher limit cards. I especially agree with pizza's suggestion of closing the Applied Bank card. That is one of THE most preditory cards out there. I also had the card, my oldest. But I closed it last October when I received a WaMu Visa with a very nice cl.

I suggest you carefully select which cards you will apply for, and after receiving those cards, close the cards that are costing you money.

The low limit cards like Cap1 and HSBC will, imo, not grow with you, unless you have one of their prime cards.

It's time for some upgrading!
Thanks for the info Sylvia.  I will 86 the Applied card.  I'm sorry to hear that you had it as well.  I can not imagine a more expensive card to use than that card. 
 
I will call Cap1 and ask if they will do a CLI to 5k.  I am sure they will as I have good credit and they pull a soft on my file every month so they can send me their pre-approved offers in the mail.
 
Thanks again for your response.
Message 8 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

ilovepizza wrote:
 
1. I would definitely cancel the Applied Bank (Opened 8/2001). Gone..!
2. I would keep the 2 from HSBC. They are helping and not hurting.
3. The Cap1 is not looking good with that credit line. If you cancel the Cap1 card now you will not have a negative change in your credit score until it falls off in 10 years.

After it falls off your credit reports in 10 YEARS you score will drop up to (about) 4 points (or less) for age loss unless they change the scoring formula. Basically it sets your average age back 1 year. But more than likely in 10 years you will have had other new accounts that will avg in to the age factor and reduce the effect of the Cap1 account.

That is very odd that the other companies raised you to $7k and $8k but Cap1 keeps you in super subprime under $1k. I'd demand $5k or cancel it in my opinion. I wouldn't want that credit line as open when you have other prime cards showing.

Low limits on retail cards such as the best buy don't look bad. Maybe later the non retail Visa/Mc HSBC card that you have (assuming it is not retail) you can get that credit line up to $5k. If they are both retail the low limits don't matter as much.

So I'd keep the other cards for the next forever... But dump Applied Bank today and ask for a CLI on CAP1 to $5k if not dump it too. That's my advice. Ask if they will be willing to raise the credit line for cap1 before they hit you with an inq. If they say no, no point of getting an inq. I ask if they would be willing to raise my CL before I apply. I also ask what they would look for to approve. Then I know if I am wasting an inq or not. If they tell me no lates in 7 years, and I have one, I back out. Good luck. Keep your other accounts.
______________________________________________________________________________________
 
Thanks so much for your input.  I will xcl the Applied card and call Cap1 to see what they will do.  I am sure they will give me 5k.  I have a clean file w/ many different trades reported as "paid as agreed" and "paid in full".  They pull a soft on me every quarter so they know my file.  I will call and talk to a supervisor and see how it goes.  I will definetly ask their requirements before they pull a hard on me. 
 
So do you think I should get a new card, AMEX, w/ a high limit?  I am really thinking this would be a good idea.  I will also check w/ my CU today as well. 
 
 
Message 9 of 12
Anonymous
Not applicable

Re: Ssould I Ask For A Credit Increase or Just Get A New Card???

Agree with Pizza yet again! Smiley Happy
Message 10 of 12
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.