topic Re: Credit line increase question in Credit Cards

Credit line increase question

Anonymous — Fri, 27 Oct 2017 22:46:34 GMT

Okay I’m wondering if anyone can tell me, when your trying to get a cli is it better to run up the card a lot every month or is it better to keep the bill relatively low

Re: Credit line increase question

Anonymous — Fri, 27 Oct 2017 23:24:25 GMT

I know Chase likes heavy use first....Discover is becoming like that too....

Re: Credit line increase question

Anonymous — Fri, 27 Oct 2017 23:43:51 GMT

Heavy use but also heavy payments. They want you to use them, but on many cards if you roll over a large utilization (cap one is an example) they can and will deny you based on "recent account balances too high"

Happened to my girlfriend two months ago when she posted a 70% util on a 500 limit card

Straight from her denial letter PDF on her account:

=====

Dear xxxxxxxxxxx,

You recently requested a credit line increase for your Capital One

account. Unfortunately, your

account isn't eligible right now. We know this isn't the answer you were hoping for and we want to

help you understand why:

Recent use of this account's existing credit line has been too high

========

But for the most part, use a lot and PIF or leave just a small balance seems to be the rule. Also a history of nothing but minimum payments may not be in your favor either. Double or even triple the minimum is probably more solid.

Re: Credit line increase question

Anonymous — Sat, 28 Oct 2017 00:10:48 GMT

I always use my cards and pay them off before the report....I have two cards I use as balance transfer cards the other I pay off including Cap one. But I know for a fact Chase likes havy use before they will give you an auto CLI....

Re: Credit line increase question

Anonymous — Sat, 28 Oct 2017 02:35:50 GMT

I never carry a balance over a billing cycle. Good way to get sucked into a pit

Re: Credit line increase question

Anonymous — Sat, 28 Oct 2017 02:39:20 GMT

I leave a 20-30 dollar balance (whatever minimum payment amount is) on 1-2 cards each cycle besides my primary spender

That way they constantly report and are up to date. Then I pay them off the next month and pick 1-2 different cards to carry a small balance and so on.

Re: Credit line increase question

HeavenOhio — Sat, 28 Oct 2017 10:51:02 GMT

Keep in mind that "carry" a balance means to not pay the full statement amount, i.e. you pay interest unless you're in a 0% interest period.

You can "post," "print," or "report" a balance without carrying one. The balance would come from new charges made during the current statement period.

Back to the original question, preferences seem to vary from lender to lender, but I think the biggies are to use the card and pay in full. I personally wouldn't ask for a CLI if either my current balance or my previous statement balance were high. But some might come up with some reasonable counterpoints to that.

Re: Credit line increase question

Loquat — Sat, 28 Oct 2017 03:26:32 GMT

In my opinion, there isn't a set-in-stone way of increasing your credit limit. I would think that one would have a better argument for an increase if they were utilizing the limit they currently have...at least you have a basis for wanting and needing more. Utilizing 1-2% of your given limit may not be enough to justify and increase to a computer algorithm or even a human.

I know many would say, if I had more, I'd use more. But the same argument could be said from the other side of, if you use more, we'd give you more. A never ending battle.

There are some lenders (Synchrony) where their increases are more tied to score rather than use. Lenders of such are few and far between...especially now as it seems as though some are really tighening up their wallet.

I would suggest using your card in a manner which would justify a need for an increase. I know some would suggest that carrying a balance would be a good idea but in my mind, I don't believe or can advocate paying interest for the sake of an increase. But then again, that's just my mindset.

Best of luck to you.

Re: Credit line increase question

Anonymous — Sat, 28 Oct 2017 03:43:27 GMT

@Anonymous wrote:
I never carry a balance over a billing cycle. Good way to get sucked into a pit

stuff happens! washer goes out ect! ideally you don't want to keep a balance but sometimes like in my case a lot of stuff breaks at the same time....thank God for 0%. most of the big banks want to see heavy usage....Period! the only times I was approved by citi bank for a CLI was when I put a lot on the card then paid it a few months in a row.

Re: Credit line increase question

Anonymous — Sat, 28 Oct 2017 04:32:31 GMT

I think a lot of it depends on the lender. I was at over 80% utilization on my Limitless when I requested a CLI because I wasn't really thinking of how utilization may have factored into the decision. End result - they more than tripled my limit. I always PIF and may have gotten more if I had paid prior to the CLI request, but it shows that there's not always a specific rhyme or reason.

Re: Credit line increase question

Anonymous — Sat, 28 Oct 2017 09:50:52 GMT

@Anonymous wrote:
I know Chase likes heavy use first....Discover is becoming like that too....

Disco auto-CLI'd me today. Spending last cycle? About 4% of my CL.

Re: Credit line increase question

SouthJamaica — Sat, 28 Oct 2017 15:34:47 GMT

@Anonymous wrote:
Okay I’m wondering if anyone can tell me, when your trying to get a cli is it better to run up the card a lot every month or is it better to keep the bill relatively low

In my opinion there is no single formula; different lenders have different attitudes, and in many instances -- e.g. Discover -- people have had wildlly different experiences in this area. So there are many theories, but we're all basically guessing.

The closest thing I've seen to something that makes sense of it is a blog post that Barclays once posted on its Ring card blog.

It said that it treats lower utilization as a proxy for lower risk, and it treats higher utilization as a proxy for higher profitability, and it tries to strike a balance between the two in deciding whether to issue an auto CLI. I.e. people with very high utilization, or very little utilization, are not expected to receive a CLI, while those with modest utilization are likely to be in the best place for a CLI. From the graphics they showed it looked like they were talking about 10 to 25% as the "sweet spot". In defining utilization they weren't talking about statement-posted utilization, but intra-month utilization (i.e. actual usage of the existing limits).

Re: Credit line increase question

Anonymous — Sat, 28 Oct 2017 22:17:58 GMT

@HeavenOhio wrote:
Keep in mind that "carry" a balance means to not pay the full statement amount, i.e. you pay interest unless you're in a 0% interest period.

You can "post," "print," or "report" a balance without carrying one. The balance would come from new charges made during the current statement period.

Back to the original question, preferences seem to vary from lender to lender, but I think the biggies are to use the card and pay in full. I personally wouldn't ask for a CLI if either my current balance or my previous statement balance were high. But some might come up with some reasonable counterpoints to that.

I don't believe that is so.

When the statement cuts you then are warranted a grace period.

Say you start the period at $0 and spend $1000

You pay down to $100 and "carry that balance"

If you pay the $100 before the next statement, you are interest free.

CLI is very different from bank to bank like Ohio said.

It would advantageous to figure which bank you want the increase with and then search it here on the forums.

Re: Credit line increase question

Anonymous — Sun, 29 Oct 2017 01:02:19 GMT

@Anonymous wrote:
@HeavenOhio wrote:
Keep in mind that "carry" a balance means to not pay the full statement amount, i.e. you pay interest unless you're in a 0% interest period.

You can "post," "print," or "report" a balance without carrying one. The balance would come from new charges made during the current statement period.

Back to the original question, preferences seem to vary from lender to lender, but I think the biggies are to use the card and pay in full. I personally wouldn't ask for a CLI if either my current balance or my previous statement balance were high. But some might come up with some reasonable counterpoints to that.
I don't believe that is so.
When the statement cuts you then are warranted a grace period.
Say you start the period at $0 and spend $1000
You pay down to $100 and "carry that balance"
If you pay the $100 before the next statement, you are interest free.

CLI is very different from bank to bank like Ohio said.
It would advantageous to figure which bank you want the increase with and then search it here on the forums.

No, carrying a balance is what causes interest. When the statement cuts, that is what is needed to PIF in order to not carry a balance and not accrue interest. Super general examples:

Scenario 1:

Oct 1- Charge $1k

Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28

Oct 27- Pay $1k, no balance carried, no interest accrued

Scenario 2:

Oct 1- Charge $1k

Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28

Oct 27- Pay $900, $100 balance carried, interest accrued on Oct 29 and added to following months statement

Re: Credit line increase question

Shooting-For-800 — Sun, 29 Oct 2017 20:02:14 GMT

I use my cards for EVERY purchase possible.

I make payments WEEKLY.

It seems to work well for me for the 5 cards I care the most about (Cap One, Lowes, Amazon.)

Not to mention 1.5% - 10% cash back on the purchases.

Re: Credit line increase question

Anonymous — Sun, 29 Oct 2017 22:33:32 GMT

@Anonymous wrote:
@Anonymous wrote:
@HeavenOhio wrote:
Keep in mind that "carry" a balance means to not pay the full statement amount, i.e. you pay interest unless you're in a 0% interest period.

You can "post," "print," or "report" a balance without carrying one. The balance would come from new charges made during the current statement period.

Back to the original question, preferences seem to vary from lender to lender, but I think the biggies are to use the card and pay in full. I personally wouldn't ask for a CLI if either my current balance or my previous statement balance were high. But some might come up with some reasonable counterpoints to that.
I don't believe that is so.
When the statement cuts you then are warranted a grace period.
Say you start the period at $0 and spend $1000
You pay down to $100 and "carry that balance"
If you pay the $100 before the next statement, you are interest free.

CLI is very different from bank to bank like Ohio said.
It would advantageous to figure which bank you want the increase with and then search it here on the forums.
No, carrying a balance is what causes interest. When the statement cuts, that is what is needed to PIF in order to not carry a balance and not accrue interest. Super general examples:

Scenario 1:
Oct 1- Charge $1k
Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28
Oct 27- Pay $1k, no balance carried, no interest accrued

Scenario 2:
Oct 1- Charge $1k
Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28
Oct 27- Pay $900, $100 balance carried, interest accrued on Oct 29 and added to following months statement

Most card issuers offer what is called a grace period.

A period of interest free financing usually extended to the following due date from the statement close date. Simple example.

10/01- beginning balance is 0,

10/02 - charge $1000

11/01- Statement closes and your balance is $1000.

You have until the next due date (grace period) to pay.

12/01 - statement closes with 0 balance = 0% interest

Every issuer has a different amount of time for their grace period.

I always read the terms and conditions and have found this in my own credit card agreements. Ill reference them.

--Amex Blue Cash Terms and Conditions

Page 3 of 5

"If you pay the new balance on every statement by the payment due date, we will not charge you interest on purchases"

--Bank of America Credit Card Agreement

Page 8 - Paying Interest

"We will not charge you any interest on purhcases if you always pay your entire New Balance Total by the Payment Due Date.

--Comenity BJ's Perks Plus

Section D - Interest Charges

"If you make a purchase under a Regular Revolving Credit Plan, interest charges will not be imposed in any billing period in which (i) no Previous balance exist or (ii) payments received and credits issues by the payment due date equal or exceed the previous balance"

Capital One

Page 6 - Interest Charged and Fees

"In general, Interest Charges begin to accrue from the day a transaction occurs. However, we will not charge you interest on any new balances posted to the purchase segment of your account provided you have paid your previous balance in full by the due date"

Chase

Page 5 Under "Interest Free Period (also called Grace Period) on Purchases"

"Your account is in an interest free period when you pay your New Balance as shown on your statement every month by the due date and time. During this period, you willnot pay interest on purchases"

Citi Card Agreement Guide

Page 4 under "Grace Period on Purchases"

You won't pay any interest on Purchases if you pay the New Balance, including balance transfers, in full by the payment due date shown on your statement each billing period. We call this a grace period on puchases.

Discover Cardmember Agreement

Page 2 under "How to avoid paying interest on purchases ("Grace Period")"

"If you paid the New Balance on your previous billing statement by the payment due date shown on that billing statement, we will not impose interest charges on new purchases, or any portion of a new purchase, paid by the payment due date on your current billing statement. New purchases are purchases that first appear on the current billing statement."

TD Bank

Samsung Financing Program Account Summary Table

Section 3.C " How interest accrues and how to void paying interest on purchases"

"On each purchase, interest begins to accrue on the transaction date. Generally, you can avoid paying interest on standard purchases in any given billing cycle if you pay the entire statement closing date balance (identified on your statement as the "new balance") for that billing cycle in full by the payment due date reflected on that statement."

Overall, you absolutely CAN carry a balance and NOT be charged interest.

Re: Credit line increase question

Anonymous — Sun, 29 Oct 2017 23:38:36 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@HeavenOhio wrote:
Keep in mind that "carry" a balance means to not pay the full statement amount, i.e. you pay interest unless you're in a 0% interest period.

You can "post," "print," or "report" a balance without carrying one. The balance would come from new charges made during the current statement period.

Back to the original question, preferences seem to vary from lender to lender, but I think the biggies are to use the card and pay in full. I personally wouldn't ask for a CLI if either my current balance or my previous statement balance were high. But some might come up with some reasonable counterpoints to that.
I don't believe that is so.
When the statement cuts you then are warranted a grace period.
Say you start the period at $0 and spend $1000
You pay down to $100 and "carry that balance"
If you pay the $100 before the next statement, you are interest free.

CLI is very different from bank to bank like Ohio said.
It would advantageous to figure which bank you want the increase with and then search it here on the forums.
No, carrying a balance is what causes interest. When the statement cuts, that is what is needed to PIF in order to not carry a balance and not accrue interest. Super general examples:

Scenario 1:
Oct 1- Charge $1k
Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28
Oct 27- Pay $1k, no balance carried, no interest accrued

Scenario 2:
Oct 1- Charge $1k
Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28
Oct 27- Pay $900, $100 balance carried, interest accrued on Oct 29 and added to following months statement
Most card issuers offer what is called a grace period.
A period of interest free financing usually extended to the following due date from the statement close date. Simple example.
10/01- beginning balance is 0,
10/02 - charge $1000
11/01- Statement closes and your balance is $1000.
You have until the next due date (grace period) to pay.
11/26- Statement Due Date
12/01 - statement closes with 0 balance = 0% interest

Every issuer has a different amount of time for their grace period.
I always read the terms and conditions and have found this in my own credit card agreements. Ill reference them.

--Amex Blue Cash Terms and Conditions
Page 3 of 5
"If you pay the new balance on every statement by the payment due date, we will not charge you interest on purchases"

--Bank of America Credit Card Agreement
Page 8 - Paying Interest
"We will not charge you any interest on purhcases if you always pay your entire New Balance Total by the Payment Due Date.

--Comenity BJ's Perks Plus
Section D - Interest Charges
"If you make a purchase under a Regular Revolving Credit Plan, interest charges will not be imposed in any billing period in which (i) no Previous balance exist or (ii) payments received and credits issues by the payment due date equal or exceed the previous balance"

Capital One
Page 6 - Interest Charged and Fees
"In general, Interest Charges begin to accrue from the day a transaction occurs. However, we will not charge you interest on any new balances posted to the purchase segment of your account provided you have paid your previous balance in full by the due date"

Chase
Page 5 Under "Interest Free Period (also called Grace Period) on Purchases"
"Your account is in an interest free period when you pay your New Balance as shown on your statement every month by the due date and time. During this period, you willnot pay interest on purchases"

Citi Card Agreement Guide
Page 4 under "Grace Period on Purchases"
You won't pay any interest on Purchases if you pay the New Balance, including balance transfers, in full by the payment due date shown on your statement each billing period. We call this a grace period on puchases.

Discover Cardmember Agreement
Page 2 under "How to avoid paying interest on purchases ("Grace Period")"
"If you paid the New Balance on your previous billing statement by the payment due date shown on that billing statement, we will not impose interest charges on new purchases, or any portion of a new purchase, paid by the payment due date on your current billing statement. New purchases are purchases that first appear on the current billing statement."

TD Bank
Samsung Financing Program Account Summary Table
Section 3.C " How interest accrues and how to void paying interest on purchases"
"On each purchase, interest begins to accrue on the transaction date. Generally, you can avoid paying interest on standard purchases in any given billing cycle if you pay the entire statement closing date balance (identified on your statement as the "new balance") for that billing cycle in full by the payment due date reflected on that statement."

Overall, you absolutely CAN carry a balance and NOT be charged interest.

Thank you, that is a whole lot of examples of exactly what I said and I highlighted it in red. I don't know if you didn't read my post or are trying to enhance what I said by citing how all of the banks word Scenario 1, but I definitely agree with everything that you posted aside from where you missed the statement due date in your grace period example (added in red). The statement due date has to happen before the next statement cut date in order to add any necessary interest to the new statement that gets cut. As long as you PIF on the statement due date then you absolutely won't be charged interest, but carrying a balance past it absolutely will.

Re: Credit line increase question

AverageJoesCredit — Sun, 29 Oct 2017 23:39:33 GMT

Says Neo::: WOAH!!

Re: Credit line increase question

Anonymous — Sun, 29 Oct 2017 23:46:49 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@HeavenOhio wrote:
Keep in mind that "carry" a balance means to not pay the full statement amount, i.e. you pay interest unless you're in a 0% interest period.

You can "post," "print," or "report" a balance without carrying one. The balance would come from new charges made during the current statement period.

Back to the original question, preferences seem to vary from lender to lender, but I think the biggies are to use the card and pay in full. I personally wouldn't ask for a CLI if either my current balance or my previous statement balance were high. But some might come up with some reasonable counterpoints to that.
I don't believe that is so.
When the statement cuts you then are warranted a grace period.
Say you start the period at $0 and spend $1000
You pay down to $100 and "carry that balance"
If you pay the $100 before the next statement, you are interest free.

CLI is very different from bank to bank like Ohio said.
It would advantageous to figure which bank you want the increase with and then search it here on the forums.
No, carrying a balance is what causes interest. When the statement cuts, that is what is needed to PIF in order to not carry a balance and not accrue interest. Super general examples:

Scenario 1:
Oct 1- Charge $1k
Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28
Oct 27- Pay $1k, no balance carried, no interest accrued

Scenario 2:
Oct 1- Charge $1k
Oct 14- Statement showing $1k total charges with minimum payment required by Oct 28
Oct 27- Pay $900, $100 balance carried, interest accrued on Oct 29 and added to following months statement
Most card issuers offer what is called a grace period.
A period of interest free financing usually extended to the following due date from the statement close date. Simple example.
10/01- beginning balance is 0,
10/02 - charge $1000
11/01- Statement closes and your balance is $1000.
You have until the next due date (grace period) to pay.
11/26- Statement Due Date
12/01 - statement closes with 0 balance = 0% interest

Every issuer has a different amount of time for their grace period.
I always read the terms and conditions and have found this in my own credit card agreements. Ill reference them.

--Amex Blue Cash Terms and Conditions
Page 3 of 5
"If you pay the new balance on every statement by the payment due date, we will not charge you interest on purchases"

--Bank of America Credit Card Agreement
Page 8 - Paying Interest
"We will not charge you any interest on purhcases if you always pay your entire New Balance Total by the Payment Due Date.

--Comenity BJ's Perks Plus
Section D - Interest Charges
"If you make a purchase under a Regular Revolving Credit Plan, interest charges will not be imposed in any billing period in which (i) no Previous balance exist or (ii) payments received and credits issues by the payment due date equal or exceed the previous balance"

Capital One
Page 6 - Interest Charged and Fees
"In general, Interest Charges begin to accrue from the day a transaction occurs. However, we will not charge you interest on any new balances posted to the purchase segment of your account provided you have paid your previous balance in full by the due date"

Chase
Page 5 Under "Interest Free Period (also called Grace Period) on Purchases"
"Your account is in an interest free period when you pay your New Balance as shown on your statement every month by the due date and time. During this period, you willnot pay interest on purchases"

Citi Card Agreement Guide
Page 4 under "Grace Period on Purchases"
You won't pay any interest on Purchases if you pay the New Balance, including balance transfers, in full by the payment due date shown on your statement each billing period. We call this a grace period on puchases.

Discover Cardmember Agreement
Page 2 under "How to avoid paying interest on purchases ("Grace Period")"
"If you paid the New Balance on your previous billing statement by the payment due date shown on that billing statement, we will not impose interest charges on new purchases, or any portion of a new purchase, paid by the payment due date on your current billing statement. New purchases are purchases that first appear on the current billing statement."

TD Bank
Samsung Financing Program Account Summary Table
Section 3.C " How interest accrues and how to void paying interest on purchases"
"On each purchase, interest begins to accrue on the transaction date. Generally, you can avoid paying interest on standard purchases in any given billing cycle if you pay the entire statement closing date balance (identified on your statement as the "new balance") for that billing cycle in full by the payment due date reflected on that statement."

Overall, you absolutely CAN carry a balance and NOT be charged interest.
Thank you, that is a whole lot of examples of exactly what I said and I highlighted it in red. I don't know if you didn't read my post or are trying to enhance what I said by citing how all of the banks word Scenario 1, but I definitely agree with everything that you posted aside from where you missed the statement due date in your grace period example (added in red). As long as you PIF on the statement due date then you absolutely won't be charged interest, but carrying a balance past it absolutely will.

Okay, I didn't read the first post thoroughly and missed what I highlighted in blue. I dont want to play the blame game but i definitely felt you were opposing what i was saying after your first post. Then from there the way it was worded like you would pay interest on any statement balance other than 0 which we both know is not true and I was just trying to clarify that. Not until this last post did I realize you knew how the grace period worked, I apologize. Funny conversation in all.