topic Re: When to ask for CL increase? in Credit Card Applications

When to ask for CL increase?

JM761 — Wed, 06 Apr 2022 17:43:01 GMT

Good morning,

I wanted to ask for guidance. I am new to this journey and thought this board would have some good suggestions.

A bit of background:

My husband and I are in the process of rebuilding our credit. Mine is tanked and on the (very) slow increase due to paid charge offs.

His is around 720-730. Not the best but slowly building. He has only 1 credit card and a mortgage.

He has multiple student loans that he pays regularly, so I think that helps bump up the score.

THere are 3 medical collections we are dealing with. One was a Paid for less than full balance ($210/$262) and we are trying to have it removed (esp since I believe agencies will not be reporting this balance after July 2022), 2 are unpaid and we didn't know about - both for $100. We are goign to try and PFD both of them this week (we just found out about them).

The big question:

Right now, while we deal with the collections issues, we have learned we should try and increase debt to credit ration.

That means: open additional cards to give him more lines of credit (he only has 1) and, I think, request an increase to his current credit card (Chase $5400 limit, current utilization approx 6%)

Which would be best to do first?

I thought having a higher credit limit might increase available debt to credit ratio and the next step could be to look for pre-approved promotions but I wasn't sure which was best.

Thank you, in advance, for sharing your thoughts.

Also, I've tried reading all the pinned posts but it's overwhelming. I am still working my way through. If there is one you suggest I read so I can avoid bothing with simple questions, please let me know and I'll make it a priority!

Re: When to ask for CL increase?

HeavenOhio — Wed, 06 Apr 2022 17:13:04 GMT

Are the collections on your husband's report?

Re: When to ask for CL increase?

Aim_High — Wed, 06 Apr 2022 17:17:08 GMT

Welcome to My Fico Forums, @JM761. I see from your previous postings that you've also found the "Rebuilding Your Credit" forum which seems it would be a great resource for your situation!

Good luck with getting the medical debt collections removed.

Yes, if DH has just one credit card, an additional card or two would probably improve his score. Supposedly, three cards is the ideal minimum to be able to achieve the highest FICO from a scoring perspective. You can read or ask more about that in the Understanding FICO Scoring forum.

Chase will get increases, but they normally like to see moderate-to-heavy usage of the existing credit limit to give more. If that 6% utilization on the $5400 card ($324) is your normal monthly spend, they probably would see no need for an increase. If driving up monthly spend on the card (with the ability to repay monthly) is within your budget, then by all means you could try to get the CLI on the Chase card. However, I suspect you may be better off applying for a second card. Since we always recommend diversifying lenders, I would suggest applying with a different bank for card2.

Yes, the amount of information on the forums can be overwhelming and it goes back for years. No worries about starting a new topic if you have questions. Of course, try to use the search feature and make a reasonable effort to get your answers before starting new posts. But if you don't find what you need, just ask! If the posting is redundant to other message threads, moderators might merge your posting in those older threads. The big no-no is starting multiple similar threads trying to get the same information. That is highly frowned upon.

Re: When to ask for CL increase?

JM761 — Wed, 06 Apr 2022 18:16:37 GMT

@HeavenOhio wrote:
Are the collections on your husband's report?

yes, at the moment they are. We just pulled his report and didn't know about the 2 unpaid (for $68 and $98 dollars). I am going to pay in full today and, hopefully, get a pay for delete but I know that is not guaranteed.

The other one, paid for less than full balance is on his report. It shows Dec 2020 and Jan 2021 as "collections" and just dashes for each month after that. Balance isn't listed at all but it does say "settled for less".

Re: When to ask for CL increase?

SouthJamaica — Wed, 06 Apr 2022 18:09:18 GMT

@JM761 wrote:
Good morning,
I wanted to ask for guidance. I am new to this journey and thought this board would have some good suggestions.

A bit of background:
My husband and I are in the process of rebuilding our credit. Mine is tanked and on the (very) slow increase due to paid charge offs.
His is around 720-730. Not the best but slowly building. He has only 1 credit card and a mortgage.
He has multiple student loans that he pays regularly, so I think that helps bump up the score.
THere are 3 medical collections we are dealing with. One was a Paid for less than full balance ($210/$262) and we are trying to have it removed (esp since I believe agencies will not be reporting this balance after July 2022), 2 are unpaid and we didn't know about - both for $100. We are goign to try and PFD both of them this week (we just found out about them).

The big question:
Right now, while we deal with the collections issues, we have learned we should try and increase debt to credit ration.
That means: open additional cards to give him more lines of credit (he only has 1) and, I think, request an increase to his current credit card (Chase $5400 limit, current utilization approx 6%)
Which would be best to do first?
I thought having a higher credit limit might increase available debt to credit ratio and the next step could be to look for pre-approved promotions but I wasn't sure which was best.
Thank you, in advance, for sharing your thoughts.
Also, I've tried reading all the pinned posts but it's overwhelming. I am still working my way through. If there is one you suggest I read so I can avoid bothing with simple questions, please let me know and I'll make it a priority!

Adding a card would likely reduce his scores in the short run, but in the long run enable to him to increase his scores by having 2 accounts with 1 reporting a zero balance while the other reports a small balance before paying it off. I'm guessing it would be 3-4 months before he showed a net gain.

Re: When to ask for CL increase?

SouthernCredit — Wed, 06 Apr 2022 18:20:21 GMT

I'll add that requesting a CLI from Chase will result in a HP of his credit, so I would not request a CLI from them. I would look to open other cards to increase his available credit and decrease utilization.

I would check preapprovals on Amex, Apple Card, FNBO, Citi, etc. to see if he has offers on other cards from other lenders. Apple and FNBO will tell you the limits and terms before final approval and the HP, so that could help gauge whether they are with opening.

Re: When to ask for CL increase?

JM761 — Wed, 06 Apr 2022 18:20:27 GMT

@Aim_High

Thanks for all the helpful info and taking the time to send such a helpful response. I greatly appreciate it! I'm defintely reading all I can but I start to second guess myself and am not sure if I'm reading the most up to date info.

The rebuilding credit forum has been extremely helpful. So many questions have been answered with the search function. I get stuck when I think "this isn't my *exact* situation and I want to be sure". I'm learning not to post frantically each time I have a question...as many have said: patience is key!

I appreciate the feedback about CC usage. We can definitely use the Chase card more. It's only his name on it (b/c I think adding my name might hurt him until my scores are up). We don't charge much on it now because we were trying to stick to the "low utilization looks best" concept on our card. It sounds like what you are saying is that it would be better is if we use it heavily during the month, drive up the balance up and then make a payment to the card *before the bill is processed* to bring utilization down, that would be best. Did I get that right? It makes a lot of sense - especially if we want to put things like monthly bills on there, like internet, phone, etc. I normally pay directly from credit account but I could pay on the card and pay it all at the end of the month.

It looks like my husband is pre-approved for a few cards but we will look and see which works best for us. I don't want to make a rash decision, so I will read the boards for the best options.

Thanks for the feedback about posting - I will try my best not to replicate and ask the same thing more than once. It's a bit hard when I finally feel like we are in a place to figure this all out - we had the rug ripped out from under us in 2017 and, as happened to so many people, we struggled for a bit. Things are finally looking up and I'm tackling debts and the report. I settled a charge off and we are working our way through collections. Unbeknownst to us, in the middle of our life-crisis, we missed some bills. We could have paid them back then and it was just lost. It's terrible...my credit was close to 800 before all this started and now it's in the toilet. I'm clawing my way back though. In the meantime, it would be great to work on my husband's too.

Thank you for all the helpful advice. It is very much appreciated!

Re: When to ask for CL increase?

JM761 — Wed, 06 Apr 2022 18:29:00 GMT

Thank you, @SouthJamaica!

I think we will look to add a 2nd card and, as suggested in an earlier comment, utilize the chase more than just 6% during the month (but pay it down before the statement) to show we need a CL increase.

Thank you for the helpful guidance!

Re: When to ask for CL increase?

JM761 — Wed, 06 Apr 2022 18:34:40 GMT

@SouthernCredit I am so glad I asked this question! I knew a new card would be a HP but I didn't realize a CL increase on his card would also be a HP. This is so helpful!

As others suggested, it sounds like you agree a 2nd card would be best. I'm glad to hear from all 3 that we should do that - I was about to go the opposite direction and do a CL increase.

I will start to look into pre-approval offers. I am sure there's a good place to find them - I think I saw some pre-approvals when we pulled his report on experian. I'll research the group for the best place to find this info. Thank you so much. These boards are making the overwhelming mountain of credit repair a little less chaotic.

@SouthernCredit wrote:
I'll add that requesting a CLI from Chase will result in a HP of his credit, so I would not request a CLI from them. I would look to open other cards to increase his available credit and decrease utilization.

I would check preapprovals on Amex, Apple Card, FNBO, Citi, etc. to see if he has offers on other cards from other lenders. Apple and FNBO will tell you the limits and terms before final approval and the HP, so that could help gauge whether they are with opening.

Re: When to ask for CL increase?

SouthernCredit — Wed, 06 Apr 2022 18:46:39 GMT

@JM761 wrote:
I will start to look into pre-approval offers. I am sure there's a good place to find them - I think I saw some pre-approvals when we pulled his report on experian. I'll research the group for the best place to find this info. Thank you so much. These boards are making the overwhelming mountain of credit repair a little less chaotic.

Don't rely upon "preapprovals" through Experian - go directly to each lender's site and use their preapproval tools. The offers you see through Experian, Credit Karma, etc. These are mostly marketing.

Re: When to ask for CL increase?

Aim_High — Wed, 06 Apr 2022 19:00:57 GMT

@JM761 wrote:

@Aim_High
Thanks for all the helpful info and taking the time to send such a helpful response. I greatly appreciate it! I'm defintely reading all I can but I start to second guess myself and am not sure if I'm reading the most up to date info.

The rebuilding credit forum has been extremely helpful. So many questions have been answered with the search function. I get stuck when I think "this isn't my *exact* situation and I want to be sure". I'm learning not to post frantically each time I have a question...as many have said: patience is key!

I appreciate the feedback about CC usage. We can definitely use the Chase card more. It's only his name on it (b/c I think adding my name might hurt him until my scores are up). We don't charge much on it now because we were trying to stick to the "low utilization looks best" concept on our card. It sounds like what you are saying is that it would be better is if we use it heavily during the month, drive up the balance up and then make a payment to the card *before the bill is processed* to bring utilization down, that would be best. Did I get that right? It makes a lot of sense - especially if we want to put things like monthly bills on there, like internet, phone, etc. I normally pay directly from credit account but I could pay on the card and pay it all at the end of the month.

It looks like my husband is pre-approved for a few cards but we will look and see which works best for us. I don't want to make a rash decision, so I will read the boards for the best options.

Thanks for the feedback about posting - I will try my best not to replicate and ask the same thing more than once. It's a bit hard when I finally feel like we are in a place to figure this all out - we had the rug ripped out from under us in 2017 and, as happened to so many people, we struggled for a bit. Things are finally looking up and I'm tackling debts and the report. I settled a charge off and we are working our way through collections. Unbeknownst to us, in the middle of our life-crisis, we missed some bills. We could have paid them back then and it was just lost. It's terrible...my credit was close to 800 before all this started and now it's in the toilet. I'm clawing my way back though. In the meantime, it would be great to work on my husband's too.

Thank you for all the helpful advice. It is very much appreciated!

Glad to help, @JM761! You're not alone in having gone through some unexpected financial reversals, myself included. One thing I enjoy about the forums is the chance to help others navigate those difficult and overwhelming times.

Yes, that's exactly what I mean about the Chase card. Keeping utilization under 10% is a good goal. Some consumers don't realize that they can use their cards heavily, then make early payments, and still keep reported utilization in-check. For purposes of getting a CLI, the lender will have all their internal records and see how much you've been charging and paying, so there's no need to let it report for it to help you to get an increase.

The point about a HP for a Chase increase is true (IF) you ASK for an increase. However, with heavy usage, you may be able to get an automatic CLI after awhile and that should be a soft pull.

And yes, putting all your montly bills on the card (which are going to be paid anyway) is a great way to pump up usage without going into debt, plus you may have the chance to receive rewards on the purchases if you have a rewards card!

If your husband adds you to his Chase card as an Authorized User (AU), your credit score won't affect his credit. He is still solely responsible for repaying the account. I think you're getting that confused with a JOINT credit application which is based on both of your credit and where you are equally liable for repayment. The AU card may help your FICO as long as his card remains in good standing while not hurting his FICO.

Re: When to ask for CL increase?

JM761 — Wed, 06 Apr 2022 21:31:39 GMT

@SouthernCredit wrote:
Don't rely upon "preapprovals" through Experian - go directly to each lender's site and use their preapproval tools. The offers you see through Experian, Credit Karma, etc. These are mostly marketing.

Thank you! I had a feeling that this was a marketing issue - they said they were partered with these different cards but I didn't know any other option. I apprecate the feedback!

I went to CapitolOne and did their pre-approval. With garbage credit, they said I was pre-approved for 3 cards: CapOne Mastercard, CapOne QuickSilver Rewards and CapOne Secured Rewards (all with extremely high interest rate. I'll have to get a secured card to start, I think but I'll shop around a bit). My husband, obviously, had more options and better rates with CapitolOne. I will explore other options but I'm trying to understand: if we complete the pre-approval questions and it bring us to the screen that says "Eligible Offers" - is that the same as pre-approved? I've read stories inthe group about people being denied after pre-approval. If that's the case, I will want to go with the card that's a bit more lenient, right?

Thanks in advance...just trying to navigate it all. I appreciate your time. It has been extremely helpful!

Re: When to ask for CL increase?

JM761 — Wed, 06 Apr 2022 21:50:02 GMT

Glad to help, @JM761! You're not alone in having gone through some unexpected financial reversals, myself included. One thing I enjoy about the forums is the chance to help others navigate those difficult and overwhelming times.

Yes, that's exactly what I mean about the Chase card. Keeping utilization under 10% is a good goal. Some consumers don't realize that they can use their cards heavily, then make early payments, and still keep reported utilization in-check. For purposes of getting a CLI, the lender will have all their internal records and see how much you've been charging and paying, so there's no need to let it report for it to help you to get an increase.

The point about a HP for a Chase increase is true (IF) you ASK for an increase. However, with heavy usage, you may be able to get an automatic CLI after awhile and that should be a soft pull.

And yes, putting all your montly bills on the card (which are going to be paid anyway) is a great way to pump up usage without going into debt, plus you may have the chance to receive rewards on the purchases if you have a rewards card!

If your husband adds you to his Chase card as an Authorized User (AU), your credit score won't affect his credit. He is still solely responsible for repaying the account. I think you're getting that confused with a JOINT credit application which is based on both of your credit and where you are equally liable for repayment. The AU card may help your FICO as long as his card remains in good standing while not hurting his FICO.

Thank you for straigtening me out- and I mean that in the best way possible! I have notes from reading the forums and I definitely had it noted that being added as an AU was good for *my* credit but somewhere along the lines I just assumed it would be bad for his. This is so helpful and we can definitely have me added, esp since I have most of the bills going through my debit card.

I understand about the HP for asking on a CLI. I believe his last CLI was from heavy-use he said he got it in the mail. He also also told me last night he's been offered them before but didn't accept them b/c he thought it was a scam. Umm..what?! He just ignored the offer. He was wrapped up in work and said he didn't have time to investigate. Oy. That makes me think/hope that if we starting using it more we can push a auto CLI (trying to be hopeful in a gloomy situation)

After your last post, I decided the way I will handle this is to charge autopayments, like oil, internet, phone, etc to the card. At the same time, I will move the money to a separate account so I can pay myself throughout the month. Then, by the time it's time to pay the bill, I won't see the big drop in cash all at once from my checking. Might be extra work now but it will help me mentally. Paying a little over the month and "hiding" it from myself will make it easier to pay a big bill.

Thank you 1000x over. I am so grateful you spent some time to speak with my about this. I'm going to go research 2nd cards to add and see about a pre-approval. Tonight, we will discuss what bills to pay with the card and try and drive the usage up (but pay before the statement is processed)

Re: When to ask for CL increase?

Aim_High — Wed, 06 Apr 2022 22:41:08 GMT

@JM761 wrote:
Thank you for straigtening me out- and I mean that in the best way possible! I have notes from reading the forums and I definitely had it noted that being added as an AU was good for *my* credit but somewhere along the lines I just assumed it would be bad for his. This is so helpful and we can definitely have me added, esp since I have most of the bills going through my debit card.

I understand about the HP for asking on a CLI. I believe his last CLI was from heavy-use he said he got it in the mail. He also also told me last night he's been offered them before but didn't accept them b/c he thought it was a scam. Umm..what?! He just ignored the offer. He was wrapped up in work and said he didn't have time to investigate. Oy. That makes me think/hope that if we starting using it more we can push a auto CLI (trying to be hopeful in a gloomy situation)

After your last post, I decided the way I will handle this is to charge autopayments, like oil, internet, phone, etc to the card. At the same time, I will move the money to a separate account so I can pay myself throughout the month. Then, by the time it's time to pay the bill, I won't see the big drop in cash all at once from my checking. Might be extra work now but it will help me mentally. Paying a little over the month and "hiding" it from myself will make it easier to pay a big bill.
Thank you 1000x over. I am so grateful you spent some time to speak with my about this. I'm going to go research 2nd cards to add and see about a pre-approval. Tonight, we will discuss what bills to pay with the card and try and drive the usage up (but pay before the statement is processed)

So glad I was able to help, @JM761. You sound very excited and motivated and I'm glad the forum posts helped to give you some encouragement.

Yes, those "offers" from Credit Karma or Experian are marketing. They are "Partners" just because the get a referral kickback fee when you use their click-bait to apply. We see members complain about applying for those "offers" sometimes only to get denied. The better bets are directly on the bank websites that offer preapproval screening. Even then, it's never 100% guaranteed but it's a safer bet. If you do a web search for any of the major banks by name with the word "cards" you'll probably find a link to go directly to all of that lender's credit cards without using the third party links. (Make sure you look for links on the search engine with the bank's name in the URL.)

Another word about the Authorized User versus Joint, just to clarify. Normally, a JOINT card is determined that way at time of application. Both parties names are added to the account, both credit files are pulled and are used in the approval process, and both are EQUALLY liable for the debt. It's often done as a husband-wife but it can be other relationships. An AU card is often an "add-on," either at the the time of application (after the card was approved and the app asks if you want to add any AUs) or sometime later on. AUs benefit from the reporting of the card's charges and payments to their credit file, and it can help them to build credit history. Ultimately, all AU charges are the sole responsibility of the cardholder. On the other hand, if you are AU on a card where the primary cardholder is irresponsible, it *CAN* hurt your credit. (Not saying that applies in this case; just clarifying that there is a risk as AU.) Any utilization and payment history is reported on both files. Some of our members have added their minor or college-age children as AUs to their cards to help them to build credit, as an example. Spouses are often added after-the-fact to cards by our members, and I've done some of those with DW. So the AU's credit score or report has no bearing on the credit score or report of the primary cardholder, or on the underwriting of the credit card where you are AU. In the grand scheme of things, even if you have other JOINT or AU cards, it's good to have some individual credit in your own name. For example, I had a prior marriage and several of our joint accounts had to be either closed or divided (one party assumes responsibility, if the lender allows that.)

Re: When to ask for CL increase?

JM761 — Thu, 07 Apr 2022 03:18:40 GMT

Thank you (again) - I'm so motivated. My credit score was 770+ before we hit bottom. Unfortunately, that was fairly recently so the charge offs and issues are still new. I know they will get better over time but oof...it's hard to be patient! In the meantine, the boards are helping me learn so much. I know we can get back to where we were...hopefully thanks to some better decision making, it will be sooner rather than later. The wait for chargeoffs to disappear is killing me though!

Thanks for the tips on where to look online. I did some googling a bit after my last post and can now see the difference between going to a generic website vs going directly to the company's website for pre-approval. I will focus on the direct links - I think I'll have to wait a bit longer. Maybe I can get on my husband's Chase as an AU. That will help.

The AU explanation is very helpful! Thank you (again). I did a search in the group for AU and read a bunch of threads. In addition to your explanation, I found this one particularly helpful: https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-complete-primer/m-p/6370264

Even though not all the specifics apply to my situation it was very helpful to understanding the whole AU concept.

This thread made me a bit wary: https://ficoforums.myfico.com/t5/General-Credit-Topics/AU-Question/m-p/6444043

It says that the CC might deny the poster's GF as a AU b/c the AU had a bad experience with the card holder. I know that was just someone saying it "could" happen but it has me a bit concerned b/c although my husband and I both bank w/ chase (checking and savings) since 2007/2010, my charge off (that I just recently settled for less than full balance) was with Chase. The card where I would be made AU is also with Chase. My husband's Chase card has been open since 2006 and has never been late, perfect payment history, so it's in good standing. I'm the one with the crappy chase charge-off.

Knowing this, do you think there is any validity to the concern? Is it a bad idea to try and go w/ Chase?

If you aren't sure or if it's too far off topic, please let me know and I will be happy to start a new topic (either here or the credit rebuilding forum). I checked the group but didn't find much else on the topic.

Also, we checked the process with Chase online. The FAQ says:

Will adding an AU affect my credit?

The (exact) wording of the response is: "We won't run a credit check on the primary cardmember or the authorized user. However, we'll let credit agencies know there's an authorized user on the account, which can affect their credit score"

I'm confused b/c I'm not sure who chase is referring to at the end of the sentence. "which can affect their credit score" - is that the primary or the AU? So confusing...I guess we can call in the morning but I think they will say just repeat the same info to us that is on the website. When I've called in the past, they do not explain very much. Just repeat the words from the policy.

Thanks again...

Re: When to ask for CL increase?

Aim_High — Thu, 07 Apr 2022 02:21:09 GMT

@JM761 wrote:
Thank you (again) - I'm so motivated. My credit score was 770+ before we hit bottom. Unfortunately, that was fairly recently so the charge offs and issues are still new. I know they will get better over time but oof...it's hard to be patient! In the meantine, the boards are helping me learn so much. I know we can get back to where we were...hopefully thanks to some better decision making, it will be sooner rather than later. The wait for chargeoffs to disappear is killing me though!

Thanks for the tips on where to look online. I did some googling a bit after my last post and can now see the difference between going to a generic website vs going directly to the company's website for pre-approval. I will focus on the direct links - I think I'll have to wait a bit longer. Maybe I can get on my husband's Chase as an AU. That will help.

The AU explanation is very helpful! Thank you (again). I did a search in the group for AU and read a bunch of threads. In addition to your explanation, I found this one particularly helpful: https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-complete-primer/m-p/6370264
Even though not all the specifics apply to my situation it was very helpful to understanding the whole AU concept.

This thread made me a bit wary: https://ficoforums.myfico.com/t5/General-Credit-Topics/AU-Question/m-p/6444043
It says that the CC might deny the poster's GF as a AU b/c the AU had a bad experience with the card holder. I know that was just someone saying it "could" happen but it has me a bit concerned b/c although my husband and I both bank w/ chase (checking and savings) since 2007/2010, my charge off (that I just recently settled for less than full balance) was with Chase. The card where I would be made AU is also with Chase. My husband's Chase card has been open since 2006 and has never been late, perfect payment history, so it's in good standing. I'm the one with the crappy chase charge-off.

Knowing this, do you think there is any validity to the concern? Is it a bad idea to try and go w/ Chase?
If you aren't sure or if it's too far off topic, please let me know and I will be happy to start a new topic (either here or the credit rebuilding forum). I checked the group but didn't find much else on the topic.

Also, we checked the process with Chase online. The FAQ says:
Will adding an AU affect my credit?
The (exact) wording of the response is: "We won't run a credit check on the primary cardmember or the authorized user. However, we'll let credit agencies know there's an authorized user on the account, which can affect their credit score"

I'm confused b/c I'm not sure who chase is referring to at the end of the sentence. "which can affect their credit score" - is that the primary or the AU? So confusing...I guess we can call in the morning but I think they will say just repeat the same info to us that is on the website. When I've called in the past, they do not explain very much. Just repeat the words from the policy.
Thanks again...

Glad you found my off-the-cuff AU discussion helpful, @JM761. There was some good additional info in that thread you linked also.

Under the circumstances, there is a chance that Chase would deny you as an AU, but I really doubt it. The primary cardholder is responsible for your charges and since you bank there, I'm thinking it would just be approved.

What they are saying is that even though Chase will not do a hard pull of the new AU when the AU is added to the card, the AU's FICO score could be affected since the new account will be reported, along with the information in it. You'll take a minor hit for a "new account scoring penalty" just as-if you had applied for a new credit card in your name. As that AU primer pointed out, you'll also "inherit" for better or for worse the scoring impacts of the account to which you are added. Let's say, for example, that DH had an 85% individual account utilization on that account and all your previous accounts had low utilization. Even though you're adding additional credit for utilization calculations, you're also adding the DEBT on that account to YOUR FICO scoring. On the other hand, if YOU had the high utilization but DH had 0% utilization on a $25K card, you just reaped the benefit of a $25K utilization "pad." AS the primer pointed out, the AGE of the account to which you are added can be a positive or a negative, depending on your AAoA (Average Age of Accounts.) If you have young, new credit and you add a 20-year card, it's a benefit. If you have 20-year AAoA and add a card that is six months old, it will lower your AAoA. The reason the Chase explanation is so vague is that FICO could be affected in different ways, for better or for worse when you are added as AU to a new account.

Re: When to ask for CL increase?

JM761 — Mon, 11 Apr 2022 00:53:05 GMT

This all makes sense and I'm grateful for the explanation. I was feeling a bit weary after trying to download it all into my brain in a short span of time. We have so many things that need to happen and each one needs a significant amount of learning to understand/tackle. I re-read this thread (and the other one on AU) over a cup of coffee and it was even more helpful than yesterday. I needed some time to digest all the info. Everything you said makes sense. At this point, I think we will take the risk and ask to be an AU. I will do a few searches to see if others have run into this specific issue, just to be as safe as possible. I read that Amex won't allow you to be an AU if you have already had issues w/ Amex due to a charge off. I didn't see anything specific to chase but I'll look around again, just in case. In this case, although my husband's CL is only $5400, it isn't a huge pad but will help. His stellar credit history and low utilization (he has it charge about 5-6% each month and then pays off). As you mentioned, my file is fairly thin. My previous credit history was in the very good range but that was pre-2017. That is when the wheels fell off the credit cart (or is it card? )

Thank you, again. I feel like this is a significantly more solid plan than I had 2 days ago.

First, research AU/Chase (just b/c I'm being super cautious and I don't know if my ego can take the rejection!)

Next: switch autopay to his card. Move money for monthly bills on card to separate account. Set reminder to pay bill down in advance.

After that, I'm tackling collections to see if I can have any removed and then, let things breathe a bit. Hopefully after a cycle or two my efforts will show (paid off charge, AU, hopefully paid off collections) and I will be eligible for a secured card. Fingers crossed. I can't thank you enough for helping. This is truly a humbling experience.