topic Re: Low utilization before applying for more credit cards? in Credit Card Applications

Low utilization before applying for more credit cards?

TyRacing — Thu, 20 Sep 2018 00:25:29 GMT

Does it help to have my credit cards at 0% or 1%-5% util before applying for more credit cards? To increase the odds of approval, to get higher credit limits, APRs. to get more Online or Mail offers?

Or will the banks believe that i'm playing games with them to just get the Sign-up Bonus?

Re: Low utilization before applying for more credit cards?

FinStar — Wed, 19 Sep 2018 20:47:05 GMT

A lot of variables come into play for each lender when it comes to certain UW criteria.

Common guidance is that the lower your utilization, the better your profile appears to be managed. You also have to take into consideration, scores, profile age/account mix, income/DTI, etc.

Re: Low utilization before applying for more credit cards?

SouthJamaica — Wed, 19 Sep 2018 22:10:11 GMT

@TyRacing wrote:
Does it help to have my credit cards at 0% or 1%-5% util before applying for more credit cards? To increase the odds of approval, to get higher credit limits, APRs. to get more Online or Mail offers?

Or will the banks believe that i'm playing games with them to just get the Sign-up Bonus?

The lower the better, but not zero.

Re: Low utilization before applying for more credit cards?

TyRacing — Thu, 20 Sep 2018 00:28:23 GMT

@SouthJamaica wrote:
The lower the better, but not zero.

so at 1% would be the best

Re: Low utilization before applying for more credit cards?

wingennis — Thu, 20 Sep 2018 01:10:06 GMT

I've been denied for not using enough of my available credit

Re: Low utilization before applying for more credit cards?

TyRacing — Thu, 20 Sep 2018 03:27:17 GMT

what bank

@wingennis wrote:
I've been denied for not using enough of my available credit

what bank said that you were not using enough of available credit? they send you a letter?

Re: Low utilization before applying for more credit cards?

Anonymous — Thu, 20 Sep 2018 04:27:18 GMT

Anything low is fine. Banks also know that most people don't micromanage their balances, do things like AZEO, etc. and just let balances naturally report. That being said, someone can be at (say) 15%-25% utilization easy simply based on how their balances report naturally, but they'd be at 1% if they focused on micromanaging their balances for 30 days. Banks know this and as a result typically don't care or look adversely upon someone with under 30% utilization reported. I would not expect it to hinder any CC opportunities.

Re: Low utilization before applying for more credit cards?

Brian_Earl_Spilner — Thu, 20 Sep 2018 04:36:17 GMT

Your score is a snapshot of your credit at that moment it's checked. New lenders will only see that so they have no idea if you're manipulating anything. Now, someone you have a relationship with already, they have a record of what you're doing such as balances carried, payments, how much, how often, etc.

Re: Low utilization before applying for more credit cards?

wingennis — Thu, 20 Sep 2018 12:23:42 GMT

@TyRacing wrote:
what bank
@wingennis wrote:
I've been denied for not using enough of my available credit
what bank said that you were not using enough of available credit? they send you a letter?

When you get denied, by law you have to be informed of the "reasons" in writing. Having 0% utilization is not good in the credit world.

Re: Low utilization before applying for more credit cards?

Anonymous — Thu, 20 Sep 2018 14:29:43 GMT

@Anonymous wrote:
Anything low is fine. Banks also know that most people don't micromanage their balances, do things like AZEO, etc. and just let balances naturally report. That being said, someone can be at (say) 15%-25% utilization easy simply based on how their balances report naturally, but they'd be at 1% if they focused on micromanaging their balances for 30 days. Banks know this and as a result typically don't care or look adversely upon someone with under 30% utilization reported. I would not expect it to hinder any CC opportunities.

I agree. Overall utilization has never been a factor for me in getting new credit since I started my rebuild. In fact, the representative for at least one lender (Apple FCU) told me face-to-face when I opened my account with them last year that my then-current overall utilization of approximately 15% was fine, and I was approved for their Platinum Visa within a few days. Seems to me they care a lot more about whether you're responsibly managing your cards overall, particularly whether your payments are always on time followed by keeping utilization to 30% (precisely, 28.9%) or less.

Re: Low utilization before applying for more credit cards?

TyRacing — Thu, 20 Sep 2018 16:08:29 GMT

alright guys thanks for sharing all your very valuable knowledge