topic Re: Credit Line Increases in Credit Cards

Credit Line Increases

paramed3 — Thu, 10 Dec 2015 23:37:58 GMT

As most know a CL increase is a great way to get a bump in your FICO scores. I started this thread as a way to help each other with information

I just got my paypal smart connect mastercard that reports on my credit file bumped to 8000 from 5000.
My capital one quicksilver from 6000 to 8000 both of above no hard inquiry.
Also JC penny from 2750 to 4000 again no Hard inquiry. My American Airline at 10,000 wanted a hard Inquiry so I said I would wait on their bump.

My FICOS hit in 800s first time 2 months ago since 25 years ago. In 2008 it was 533. Takes time and a lot of doing nothing but paying your bills. I have new truck 2 years old with 2 hard inquiries about to toll off in 10 days. It should push last 798 into 800 range and give all 3 a little cushion when I need to use my cards.

Looking into a small mortgage for a rental home income. Not sure how it will go.

Re: Credit Line Increases

paramed3 — Thu, 10 Dec 2015 23:58:24 GMT

I keep all 3 of my credit files locked. It probably hurts me from good credit card offers now with my scores but I know locked no one can open anything in my name. I've been told it's just as bad as an opt out but very safe as far as your idenity.

Re: Credit Line Increases

Anonymous — Fri, 11 Dec 2015 00:04:40 GMT

Congratulations on your cli's!

Re: Credit Line Increases

Anonymous — Fri, 11 Dec 2015 00:31:37 GMT

congrats on your CLIs also. and, brw, CLIs don't directly impact your score. only if you carry balances. if you're reporting 1% then if you have $10k in credit or $100k it won't make a difference. no part of the scoring model says that the amount of credit obtained affects the score.

Re: Credit Line Increases

paramed3 — Fri, 11 Dec 2015 14:23:50 GMT

That is not what I have read and Bern told as see here and in score simulators. I've never gotten a CL that my fico did not go up and was most of the time with 1% utilization. I try to keep it at 1% on 1 card changing which card all the time.

I do see your point the higher your cl the more your can use your card and stay at less than 10.

I've seen countless post here on cl to help their fico and where are these algorithm rules you state it looks at ? I've never been able to clearly find them.

Re: Credit Line Increases

paramed3 — Fri, 11 Dec 2015 14:34:53 GMT

You're right it just lowers your utilization when cards used. WHY do people put so much emphases on higher credit limits ? I have always taken advantage of them as long as they don't cost me a hard Inquiry thinking it helps my credit score. It's strange you think one thing is helping when another is really doing it.

No derogatory
Perfect payment history
Low utilization
Mix and use of credit

Has dragged mine up over the years. Strange I have great fico good CL and I feel scared to use any until I see that 850 across the board just one more time in life. Lol

http://www.scoreinfo.org/overview-of-fico-scores/fico-score-factors-guide/

Re: Credit Line Increases

Kidcat — Fri, 11 Dec 2015 15:24:24 GMT

Congrats on your CLI and your very successful rebuild. Good luck to 850. I'm rooting for you.

Re: Credit Line Increases

Anonymous — Fri, 11 Dec 2015 16:02:47 GMT

that was an amazing rebuild. congrats on that and on your recent clis.

Re: Credit Line Increases

Anonymous — Fri, 11 Dec 2015 16:25:29 GMT

if you're reporting 1% it doesn't matter what the CL is.

35% - payment history
30% - balances in relation to CL
15% - types of credit
10% - AAoA
10% - search for new credit

Re: Credit Line Increases

paramed3 — Fri, 11 Dec 2015 16:34:46 GMT

Thanks very much. It's been a long hard discipline road. One hit 808 this past month December that is highest number I've seen since 1990. With 2 inquiries due off Dec 17 and another December 20 I hope that will kick all 3 in 815 range 820 I would not be able to handle it. I will not quit until I see 850 X 3 even if just for a week. I need to know I finished what I started.

Before my credit was checked in 533 I would say 5 years before that it had probably hit 400 range but by the time I looked some things were not there 7 years old then in 2008. I have no clue how I let things get that far out of hand. I sure live within my means now.

Thanks again

Re: Credit Line Increases

paramed3 — Fri, 11 Dec 2015 16:42:56 GMT

Yea I've lived by those rules now almost 10 years. Those first 2 are unreal to help you.

I wonder why so many put an empassis on CLI I don't care if I do have 25k on one card I sure will never carry a 2500 10% balance over 1 month. I have noticed this. I let a girl use my quicksilver card for furniture 12,000 and she paid me cash. I let it stay out there 3 if 4 months and paid like 3000 a month. You have no idea how it affected my FICO. First a huge dip 75 points but as I paid it in large chunchs it screamed upward. After I paid it off and I had money from her I could have first month my FICO went from a drop od 703 - 718 to 808 800 and 798 last month. I wanted to see what it would do to charge that much and pay huge payments on it.

Re: Credit Line Increases

paramed3 — Fri, 11 Dec 2015 16:48:25 GMT

I experiment like this a lot. Then after all paid I hit all credit cards up for CLI got total of 5300. Not bad should have been better. One wanted hard inquiry I said naw I'll let you give me one. The quicksilver raised from 6000 to 8000 the balance on us air card wanted a hard Inquiry. I probably could have raised that card to 15k now at 10 but did not want to carry that inquiry 2 years with 2 due off in 10 to 12 days leaving only 1 that is 1 year old Dec 17th as well.

They should teach FICO scoring and credit in HS

Re: Credit Line Increases

amakol — Fri, 11 Dec 2015 16:53:48 GMT

Security.

My usual spending pattern is to report no more than $1000 per month and PIF after statement cuts. Because of a temporarily low income, my balances are up to over $7000.

2 years ago when my total CLs were around $10K this 70% utilization would have tanked my FICO and put me in trouble with my creditors. Now, I don't think I've seen my score move more than 5 points from 1% to 7% utilization. It provides a peace of mind and safety against changing financial situations.

Other than that, for some people it's pride and for others it's a high score to test what the limit is.

Re: Credit Line Increases

paramed3 — Fri, 11 Dec 2015 17:17:59 GMT

To me it's a little of both. After great fico all my life then falling in a pit the pride of doing it working at it is rewarding and to know I went from no on credit card applications to now I have over 30k in CLI makes you feel like you corrected a lot of mistakes. As far as the limit yes I like to see what I deserve having again paid my bills perfect for 10 years. I want to have 50k in cl I just hate to hard inquiry to get the discover or BOA or Amex blue now that I actually qualify. It's been years since I qualified for those cards The 3rd inquiry I have is where I went to bank for installment loan and told her don't have me unlock my credit files unless you are positive I Qual for the loan. She did and turned me down. I was furious is not the word. I called bank president and he would do nothing. I was out by 5% debt to income. It cost me a hard Inquiry for nothing. Other 2 coming off this month where I bought my new Toyota truck 2 years ago.

Re: Credit Line Increases

languedoctor — Fri, 11 Dec 2015 22:04:23 GMT

Regarding the benefits of higher limits . . .

FICO isn't the only benefit. I've been told by people I trust that higher credit limits are beneficial for credit decisions that are reviewed (as opposed to computer-automated). In other words, a $12k card and a $9k card will make a better impression than seven $3k cards.

I've also seen some evidence of this. I got approved for Chase Freedom and BofA Cash Rewards within a few days of each other, with the Chase card having a $2800 higher limit than BofA. I asked BofA for a $3k increase, and they approved me for $2800. Not quite what I asked for, but exactly enough to match Chase. I wonder if I'd have received the same response if the comparison had been different (say, if Chase had been $2800 lower, instead).

Again, I don't know this for a fact. It's just something I filed under trusted advice. And the BofA CLI could have been a coincidence (though I know it was handled by a human, because I was on the phone with her).

Others' experience may be different.

Re: Credit Line Increases

Anonymous — Fri, 11 Dec 2015 22:24:15 GMT

you aren't understanding my statement. yes, you're correct in that higher limits "CAN" attract higher limits but it doesn't affect the SCORE.

Re: Credit Line Increases

gdale6 — Sat, 12 Dec 2015 03:32:21 GMT

Several posts has been removed from this thread for violations of our TOS and FSR policies. I want to remind everyone that you must post in an FSR manner I thank you for your understanding on this and to those of you who are I thank you.

http://ficoforums.myfico.com/t5/Credit-Cards/Forum-Etiquette/td-p/2905196

gdale6

myFico Moderator