topic Re: CLI without hard pull question in Credit Cards

CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 01:16:21 GMT

What's up everyone,
Just to vent and share my experience with you guys. I have chase slate with 1000$ limit for 4 years so far and chase never offer any credit limit increase at all. Last year I decided wether to request limit and take hard pull or open new card and I opted for option 2. So I open new card with Wells Fargo and again my CL was 1000$. Yesterday marked the 12 month with WF so today I called and requested an increase. They say it has to be a HP. I said no thanks
I am really getting frustrated with those people as my credit score is near 800 across all CB and no bad stuff on my report at all so why they never offer increase. so now am stuck with 2 cards with low limits that are not enough to do anything. Like last month I could pay for a plane ticket due to low limit.
Should I: A. put a request with a hard pull with either chase or WF or
B. Open a third credit card and hope they treat me with better limit.

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 01:20:08 GMT

We'd need more info on your file to give you sound advice here. The question I have is why are you getting $1000 starting limits with scores around 800?

A couple of factors outside of score that have a big impact on SLs and CLIs would be your income and possibly your monthy spend (depending on creditor). If you could provide some feedback on these numbers as well as some more insight about your profile that would be very helpful.

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 01:34:08 GMT

That's what make me wonder why am getting low limit. I honestly don't know why. The only thing I could think of is that my credit history is short (4 years old) but I had the impression that 4 years old credit file is in the ok department. My income is ok around 70000$ and no late payment no collection etc Am also try to keep my monthly spend less than 30% of my limit

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 02:32:53 GMT

How many total accounts do you have on your credit report and what is the average age of them? You say your credit history is 4 years old, so I'm assuming 4 years is your oldest credit line meaning that your AAoA (average age of accounts) is less. If you only have a couple of accounts, you are considered to have a "thin" file which can hold people back from larger limits depending on the creditor.

As far as utilization which you briefly touched on, your monthly spend relative to your limit is irrelevant to scoring and your overall file. What does matter is what type of balance you let report relative to that limit.

You can spend $1000/mo on a $1000 limit as long as you pay it off or pay it down significantly. Actually, you can spend more than this if you make multiple payments. Spend $1000, pay it off, spend another $1000, pay it off and let $0 report. You just spent $2000 but reported $0 for this cycle in this example.

Are you letting a balance report? When you say 30%, do you mean you just spend $300/mo on a $1000 credit line or are you letting a $300 balance report at the end of your credit cycle? These are two very different things. Spend doesn't matter so long as it gets paid off. Balance left is what impacts lending decisions such as approvals, approval amounts, CLI amounts, etc.

If you aren't already doing it, you want to make sure you're letting less than 9% of your credit limit report. So, on a $1000 limit you would want $80-something to report at most; never $90+ or it will look less favorable to lenders, especially if you are applying for new credit.

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 03:28:27 GMT

Thanks buds. And yes I only have 2 accounts only and let it balance report something between 100 $ to a 150$ A month. By the look of it, it seems it's the thin file that causing banks to be reluctant offering larger limit. Is there anything I can do to encourage banks to increase the limit

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 12:53:25 GMT

Only 2 things will really help here. One is time. Time is the answer to a lot of credit-related questions. Over time you will prove yourself to be a worthy borrower and as they become more comfortable with you they are more likely to extend you additional credit.

The other thing you should work on is thickening your file. Once you get to 5 accounts or so some people start to consider it not being "thin" any longer. While I don't recommend opening up accounts for no reason, thickening a file can be a perfectly valid reason. You could open a share secure loan which would be another account with no HP for starters, which will also help your credit score by roughly 30 points as it will help your "credit mix." After that I would open up 2 more revolvers, ones that you think would be of use to you either now or down the road. With all of those accounts reporting you'll build more solid credit history, thicken your file and IMO increase your chances for greater limits.

Re: CLI without hard pull question

krielly — Thu, 12 Jan 2017 13:34:03 GMT

Don't take this too personally from Chase.

I've had a Chase card for over 8 years. I'm still stuck at the same 1000 limit. I refuse to allow a hard pull. My scores like yours are 800+. This is the lowest limit I have. I have an Amex BCE with a 34K limit, and a Discover with a 44K limit. these are my largest 2, but I have several others with decent limits.

Why I haven't closed it yet, I have NO idea

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 15:51:25 GMT

BBS has given you a lot of good advice. Do you have any open installment loans? If not (as BBS mentions) we can suggest a quick painless way to add 30 points to your score and make your profile thicker at the same time. Since thickness seems to an issue, this seems like a no-brainer solution (if you have no open I-loans).

You may find this guide helpful about card issuers, and how to get soft pull CLIs at each (assuming they allow it).

http://www.doctorofcredit.com/credit-cards/which-credit-card-companies-do-a-hard-pull-for-a-credit-limit-increase/

I will suggest that you not worry too much about CL size. It will increase if you give it time. And we can suggest ways to make very large purchases even with a small CL.

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 16:05:50 GMT

I am looking into secured loan. many thanks y'all

Re: CLI without hard pull question

Anonymous — Thu, 12 Jan 2017 16:09:15 GMT

@Anonymous wrote:
I am looking into secured loan. many thanks y'all

If you read the first 2-3 posts in this thread, it will tell you pretty much all you need to know.

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

Re: CLI without hard pull question

iced — Thu, 12 Jan 2017 22:37:23 GMT

If you have a card you like and will use for a long time, just do the CLI.

I know a lot of people see this as "wasting" a HP, but it's not. You can take a HP and maybe get a card with a SL of $X, or you can take a HP and maybe increase your CL by $X. The advantage to the second approach is your AAoA isn't lowered for it.

Re: CLI without hard pull question

Anonymous — Fri, 13 Jan 2017 00:20:16 GMT

Really? Is it true that hp for a cli will not affect my AAOA?

Re: CLI without hard pull question

iced — Fri, 13 Jan 2017 01:14:13 GMT

@Anonymous wrote:
Really? Is it true that hp for a cli will not affect my AAOA?

You're not adding a new account, so it's not affected. All you're doing is asking them to raise the limit on your existing account. Your report will show your same old account, just with a higher limit.

Re: CLI without hard pull question

Anonymous — Fri, 13 Jan 2017 01:17:12 GMT

Make sense now. Thanks buds

Re: CLI without hard pull question

Anonymous — Sat, 14 Jan 2017 10:09:43 GMT

Creditors "The computer" are basing their CL decisions off previous CL from other cards on your credit profile. If you have no previous cards then expect a low limit.

What I would do if I had a 800+ score? TBH I'll do this with a 720+ score!

First Card.

I would go for the ~~AMEX~~ Blue or Everday card. Why?

The starting limit may be low but ~~AMEX~~ does soft pull CLI up to 3x the original CL after 61 days and then again every 181 days. It's important that you don't request CLI early. Wait the days, truest me. 1k turns into 3k in 61 days then 9k in 181 days then 27k in 181 more days. Some peeople have gon further than 65k. Don't go to high because ~~AMEX~~ will do income verification.

Next Card

I would go for ~~Discover IT~~, Why?

For the same reason as ~~AMEX~~ except you can keep requesting a CLI ever 61 days instead of 181. You can go nuts and just keep requesting with no harm to your account or score. There's no 3x CLI, some months your increase can be $400 others can be $4500, some can be denied and then you'll just request a increase again after 61 days. Some people, actually a lot of people say they request a increase after each month. I've read some pretty high CL over 30K from users doing this method.

~~AMEX~~ and ~~Discover~~ are two banks that don't require a HP for CLI and are really generous with their CL.

If you want but don't need to if you get the ~~Discover~~ and ~~AMEX~~ but:

Apply for premier cards that require annual fee "they seem to start CL with at least 5k" then switch the card into an annual free card while keeping the limit. I've done this before with ~~Chase~~.

What you absolutely don't want to do.

Don't apply for multiple cards until your CL is high. You don't want 10 cards all with 1 and 3k limits!

Wait about 6 months to a year after the high CL has posted to your CP before apping. This will show history with a high CL.

What I would do after that process is complete?

Now I may start apping, I'll probably start at the CU before the Bank because they tend to be more generous. Capital One has been known to be generous as well. There are times where you'll already have a 17K card and receive a 3K CL to start on a new card (Probably a Bank). Those times will blow and you'll feel like you wasted a HP. If I go for a bank let's say a ~~Chase~~ then I'm only applying for the premier cards then switching them to their regular cards (after I collect the bonus).

You're in a good position, great income, no debt with a high score. You just have to groom your CL limits up. Goodluck

Re: CLI without hard pull question

SouthJamaica — Sat, 14 Jan 2017 13:49:47 GMT

@Anonymous wrote:
What's up everyone,
Just to vent and share my experience with you guys. I have chase slate with 1000$ limit for 4 years so far and chase never offer any credit limit increase at all. Last year I decided wether to request limit and take hard pull or open new card and I opted for option 2. So I open new card with Wells Fargo and again my CL was 1000$. Yesterday marked the 12 month with WF so today I called and requested an increase. They say it has to be a HP. I said no thanks
I am really getting frustrated with those people as my credit score is near 800 across all CB and no bad stuff on my report at all so why they never offer increase. so now am stuck with 2 cards with low limits that are not enough to do anything. Like last month I could pay for a plane ticket due to low limit.
Should I: A. put a request with a hard pull with either chase or WF or
B. Open a third credit card and hope they treat me with better limit.

Please advise:

1. What is last statement balance on each of the cards?

2. Are there any installment loans, open or closed?

3. Any other accounts of any kind?

4. What score are you referring to? FICO 8?

Re: CLI without hard pull question

SouthJamaica — Sat, 14 Jan 2017 13:52:12 GMT

@Anonymous wrote:
That's what make me wonder why am getting low limit. I honestly don't know why. The only thing I could think of is that my credit history is short (4 years old) but I had the impression that 4 years old credit file is in the ok department. My income is ok around 70000$ and no late payment no collection etc Am also try to keep my monthly spend less than 30% of my limit

1. The age is fine.

2. The income is fine.

3. Keeping your spend down does not help you get a credit limit increase. As far as CLI's go it's better to spend a lot and keep paying it down before statement cuts. The only thing that will affect your score is the balance on the statement usually.

Re: CLI without hard pull question

SouthJamaica — Sat, 14 Jan 2017 13:54:01 GMT

@Anonymous wrote:
Really? Is it true that hp for a cli will not affect my AAOA?

It doesn't affect AAOA but a recent hard inquiry does affect your score. I think you're right not to waste a HP on a CLI request.

Re: CLI without hard pull question

SouthJamaica — Sat, 14 Jan 2017 13:58:40 GMT

If your FICO 8's are 800 I think you can get out of 'small limit hell' easily: apply for the Capital One Venture card, or an NFCU card, each of which is more generous than most lenders on starting limits. The downside to Cap One is that it usually pulls 2 or 3 bureaus, not just one.

Re: CLI without hard pull question

Anonymous — Sat, 14 Jan 2017 14:31:00 GMT

desolatedata, I know I asked you this in another thread but either didn't see your reply or forgot what your reasoning was... but why do you use a ~~strikethrough~~ any time you write a creditor name? At first I thought it was just an Amex thing, but now I see you do it will all of them?