topic Re: New Credit Card vs CLI in Credit Cards

New Credit Card vs CLI

Casper476 — Sat, 30 Dec 2017 20:09:18 GMT

So I've been thinking about this a lot and was hoping someone could offer some advice/ insight - but first, I'll provide some background: I'm in my early 20s and I'm still working to establish my credit. Currently, I have 5 student loan accounts and two credit cards. My first credit card was a Chase Freedom Unlimited ($1,500 credit limit - 1 year, 1 month old) and Commenity Bank/ Loft Card ($1,250 credit limit, 4 months old - this card isn't bad but I really regret opening a store card).

I'd like to increase my overall credit limit and I'd like some advice on the best way to do that. My most ideal option would be to get a credit limit increase on my Chase card. However, from what I've read around here it seems they are quite stingy with those and that they like to hit you twice with hard inquiries (and sometimes still deny you). I've also read that the best way to get an increase with them is to apply for an entirely new card and combine them - but this, of course, would affect my AAoA which is already fairly low (3 years 1 month).

Which brings me to option number 2: instead of worrying about the best way to get a credit limit increase with Chase, would it be better to just open a new card with someone else - preferably, a card where it is easier to increase my credit limit over time? I've read a lot about Discover's credit limit increases, which sound nice, and have been considering the Discover It. My ideal card, though, is one that is more like my Freedom Unlimited - where the cash back is fixed across all purchases. Still, the biggest item on my wishlist is one where the issuer is better with credit limit increases.

As far as data is concerned: With my Chase card, I use it every month - keeping utilization below 10% and I always pay at least the statement balance. I've never had any late payments on any account, my credit scores are 696 (EX), 698 (TU) and 701 (EQ). 2 Experian inquiries and 1 with each Trans Union and Equifax over the past 24 months - 2 of my inquries are within the past 6 months.

Any advice would be greatly appreciated!

Re: New Credit Card vs CLI

EAJuggalo — Sun, 31 Dec 2017 02:45:46 GMT

I wouldn't worry about AAoA. You have a total of around 22 years aggregate history, you could add 4 new accounts before your AAoA drops below the magical threshold of 2 years. The best way to get another Chase product for you is to watch the My Offers section of your account page. I started with a Freedom and added both a FU and a CSP through my Offers while over 5/24. You also might want to consider a Citi DC. 2% across all categories and generally soft pull CLIs.

Re: New Credit Card vs CLI

SouthJamaica — Sun, 31 Dec 2017 03:29:31 GMT

@Casper476 wrote:
So I've been thinking about this a lot and was hoping someone could offer some advice/ insight - but first, I'll provide some background: I'm in my early 20s and I'm still working to establish my credit. Currently, I have 5 student loan accounts and two credit cards. My first credit card was a Chase Freedom Unlimited ($1,500 credit limit - 1 year, 1 month old) and Commenity Bank/ Loft Card ($1,250 credit limit, 4 months old - this card isn't bad but I really regret opening a store card).
I'd like to increase my overall credit limit and I'd like some advice on the best way to do that. My most ideal option would be to get a credit limit increase on my Chase card. However, from what I've read around here it seems they are quite stingy with those and that they like to hit you twice with hard inquiries (and sometimes still deny you). I've also read that the best way to get an increase with them is to apply for an entirely new card and combine them - but this, of course, would affect my AAoA which is already fairly low (3 years 1 month).
Which brings me to option number 2: instead of worrying about the best way to get a credit limit increase with Chase, would it be better to just open a new card with someone else - preferably, a card where it is easier to increase my credit limit over time? I've read a lot about Discover's credit limit increases, which sound nice, and have been considering the Discover It. My ideal card, though, is one that is more like my Freedom Unlimited - where the cash back is fixed across all purchases. Still, the biggest item on my wishlist is one where the issuer is better with credit limit increases.
As far as data is concerned: With my Chase card, I use it every month - keeping utilization below 10% and I always pay at least the statement balance. I've never had any late payments on any account, my credit scores are 696 (EX), 698 (TU) and 701 (EQ). 2 Experian inquiries and 1 with each Trans Union and Equifax over the past 24 months - 2 of my inquries are within the past 6 months.
Any advice would be greatly appreciated!

My advice would be to go for a new card with a different bank, or better yet a credit union.

Re: New Credit Card vs CLI

Anonymous — Sun, 31 Dec 2017 03:52:24 GMT

If Discover interests you, I highly recommend them.

Soft Pull CLI's and they offer APR reductions if you ask.

I would recommend the Discover It miles. It gives 1.5% cashback (like the freedom unlimited) on everything and then you get cashback match for the first year so effectively you get 3% the first year.

They also have the Discover deals portal.

You can redeem the cash back at any amount to a checking account or for travel.

Re: New Credit Card vs CLI

Anonymous — Sun, 31 Dec 2017 04:30:12 GMT

Ever thought about the shopping cart trick for a Comenity card than can grow to $30,000? Boscovs or BonTon.

The problem with being young and new to credit is you end up with small starting lines. Many times it's a HP for a CLI.

You already have major credit cards so a store card that can offer you a potential $30,000 increase to your utilizations seems like the quickest way to get from point A to point B. Might even try a Lowes card from Synchrony which can get to $25,000 kinda fast.

You'd be surprised how many large limits you'd get with more major CCs in the future once you have a store card reporting at a $30,000 limit.

Re: New Credit Card vs CLI

NRB525 — Sun, 31 Dec 2017 04:38:08 GMT

The Citi Double Cash may start with a lower limit, but the 2% is decent. CLI should be possible after some time.

Asking Chase for a CLI should be considered. The 1.5 UR earnings are good to keep for that future CSP / CSR app. When asking, shoot high and let them counter with a limit they want to maximize.

Do you know why your scores are at 700? With your AAoA and no lates, I would expect it to be higher. What is the utilization percentage on your student loans?

Re: New Credit Card vs CLI

Anonymous — Sun, 31 Dec 2017 07:26:00 GMT

@Anonymous wrote:
Ever thought about the shopping cart trick for a Comenity card than can grow to $30,000? Boscovs or BonTon.

The problem with being young and new to credit is you end up with small starting lines. Many times it's a HP for a CLI.

You already have major credit cards so a store card that can offer you a potential $30,000 increase to your utilizations seems like the quickest way to get from point A to point B. Might even try a Lowes card from Synchrony which can get to $25,000 kinda fast.

You'd be surprised how many large limits you'd get with more major CCs in the future once you have a store card reporting at a $30,000 limit.

I had not thought about this but it is an option if you want a store card.

Both Boscov's and Bon-Ton are regional so you may want to look at other Comenity bank cards

I will admit that Comenity has been very stingy with me just as an FYI.

Re: New Credit Card vs CLI

Casper476 — Sun, 31 Dec 2017 20:46:52 GMT

@NRB525 wrote:
The Citi Double Cash may start with a lower limit, but the 2% is decent. CLI should be possible after some time.

Asking Chase for a CLI should be considered. The 1.5 UR earnings are good to keep for that future CSP / CSR app. When asking, shoot high and let them counter with a limit they want to maximize.

Do you know why your scores are at 700? With your AAoA and no lates, I would expect it to be higher. What is the utilization percentage on your student loans?

Probably the student loans, then - my balances are extremely high. However, my sister owes more on her student loans and she was able to boost her credit score by getting higher credit limits (I don't know what her utilization was like before, though). And the Citi Double Cash card has been on my list - but the reviews I've read online seem a little mixed.

@SouthJamaica - I am currently researching credit unions - I would like to join one at some point. A credit card from a credit union is definitely on my list.

@Anonymous - I hadn't considered the Discover It Miles - I didn't realize you could redeem your miles for cash. I'll have to consider that one!

@Anonymous - I wasn't really looking for another store card but now you have me curious. I'll look into that shopping cart trick - I've never heard of it!

Thanks for the feedback, y'all! I appreciate it!