topic Re: Super confused about low Util and CLI in Credit Cards

Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 18:04:39 GMT

I am currently working on credit building. Not a rebuild but a late starter. My question is: If I'm keeping a low utilization(9%) and planning on implementing the AZEO method, why would a card issuer or bank give me a CLI? Why would they give me more credit if I'm not even using what I have? I am very new into this build so I'm really confused but I'm sure someone here can explain it. I really appreciate these forums. So much info that has already taken me this far. Here are my stats if that helps.

Started building in Nov 2017- 550 average on all 3 CB

Jan 2018- EX 642 EQ 672 TU 651
Discover it 70/1400
Amex Delta gold 0/1000
Boa scc 5/600
Cap1 scc 2/200
Overstock 50/1750
Target 50/500
Kohls 20/300

Re: Super confused about low Util and CLI

Gmood1 — Sun, 21 Jan 2018 18:36:06 GMT

Do you have an installment loan? If not, I'd grab a SSL before worrying about that AZEO stuff. It will have much more of a long term impact. The AZEO is temporary and not a true builder of credit. It's more of a score manipulator. Which is fine when you absolutely need every point.
Not something I'd do long term.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 18:44:34 GMT

Yes. I am a master mechanic so I have a loan through Snap-on tools, originally 4200,current balance 2000. It reports to all CB. its actually my oldest acount as I have been using them for 10 years(multiple purchases). I am kinda thinking the AZEO is not something I need to do with my profile. But if I'm keeping my util low and why would any issuer increase my CL. Seems like they would just leave it where it's at if I'm never posting a big balance. I do use all of them but pay before closing to keep my util low

Re: Super confused about low Util and CLI

Gmood1 — Sun, 21 Jan 2018 18:51:49 GMT

Does it report as an installment loan? Or a revolving account? Some of those loans similar to lines of credit, report as a revolving account.
Seems like your scores should be higher, if you've been using them that long?
Yeah I agree, IMHO you can build a straw house relying solely on AZEO or you can build a brick one with solid account history and usage, along with a mix of revolving and installment accounts.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:00:16 GMT

On CK It shows as a secured loan. Some of accounts I listed are new and have not showed up on my CR. The amex, overstock, kohls and target are from a spree at the beginning of January. I knew nothing about how credit works until i started reading these forums back in September 2017. Im currently just making small purchases on all of them. Income is not an issue as I live way inside my means and don't buy something with credit cards that I can't pay for with any of my bank accounts. But I do want to be up in the 700 club. Goal for 2018 is 50k avail credit.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:08:45 GMT

I just checked experian website and the snapon loan shows up as installments. Not showing any store cards yet or the amex

Re: Super confused about low Util and CLI

Gmood1 — Sun, 21 Jan 2018 19:12:08 GMT

OIC, have you tried pulling your reports directly from the credit bureaus? It will show under the loan type it's reported as.
$50k TLs will be a walk in the park for you.
You should see a score increase over the next couple of months as those accounts report and age. 700 should come easy for you as well.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:18:47 GMT

@Anonymous wrote:
I am currently working on credit building. Not a rebuild but a late starter. My question is: If I'm keeping a low utilization(9%) and planning on implementing the AZEO method, why would a card issuer or bank give me a CLI? Why would they give me more credit if I'm not even using what I have? I am very new into this build so I'm really confused but I'm sure someone here can explain it. I really appreciate these forums. So much info that has already taken me this far. Here are my stats if that helps.

Started building in Nov 2017- 550 average on all 3 CB

Jan 2018- EX 642 EQ 672 TU 651
Discover it 70/1400
Amex Delta gold 0/1000
Boa scc 5/600
Cap1 scc 2/200
Overstock 50/1750
Target 50/500
Kohls 20/300

I think you are confused what AZERO is. You can use every card as much as you want every month. You just pay off every card before the statement cut date except one. It doesn’t mean don’t use the cards. It just is how you pay the cards you use.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:22:34 GMT

No but I will do all individual reports and get that cleared up. If it's reporting as a revolving credit line then I will get a SSL.

Re: Super confused about low Util and CLI

HeavenOhio — Sun, 21 Jan 2018 19:23:02 GMT

With scores in the mid-600s, you might want to do AZEO or come close to it most of the time. Card companies are known to use scores as a reason to deny CLIs. And some use scores that aren't necessarily current when they grant or deny CLIs.

In your case, balances are low, but you have every card reporting a positive balance. If you're keeping the balances as low as they are right now, you could just as easily have all but one as zero.

Although there are exceptions, most card companies like to see usage. You can have substantial usage and keep reported balances low — i.e. have the best of both worlds — by doing about what you're doing now. Discover is an exception. There's no rhyme or reason that we can pin down that explains how they operate.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:34:58 GMT

No I understand I can(and do) use all of them. But my lack of knowledge about it is this:

If I'm using each card does the issuer keep track of that internally to do CLI or are they just going to see that when it posts it's a low balance, hence not used. Here's an example to portrait it better.
My BoA card balance is at 366/600 right now. I will pay it down to probably $2-$5 before it closes. The balance will post as $2-$5 or whatever I decide to leave on it. If it's zero all the time or a majority of the time why would the give me a credit increase? Based off my scores? Maybe I'm missing something. Idk . Also that doesn't seem like it establishes the fact I can pay off a large balance if posted

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:36:43 GMT

@Anonymous wrote:
No I understand I can(and do) use all of them. But my lack of knowledge about it is this:

If I'm using each card does the issuer keep track of that internally to do CLI or are they just going to see that when it posts it's a low balance, hence not used. Here's an example to portrait it better.
My BoA card balance is at 366/600 right now. I will pay it down to probably $2-$5 before it closes. The balance will post as $2-$5 or whatever I decide to leave on it. If it's zero all the time or a majority of the time why would the give me a credit increase? Based off my scores? Maybe I'm missing something. Idk

Because they can see how much you are using the card and for what even tho they report a $0 balance. They get swipe fees every time you use the card. Just because it reports a zero doesn’t mean they aren’t seeing whatever activity is on it.

Re: Super confused about low Util and CLI

Gmood1 — Sun, 21 Jan 2018 19:42:22 GMT

Yes they will see internally. It's your other lenders that may not see it. Some lenders report the last balance before the statement cuts. Others report the highest balance you've had on the card. Even if it's paid down early. Some report zero if you pay it down before the statement cuts. And there is no way for another lender to see usage on those CCs.

Re: Super confused about low Util and CLI

HeavenOhio — Sun, 21 Jan 2018 19:38:26 GMT

Their internal records will show that you've used the card. They'll have that information for as long as they want to keep it and deem it relevant.

They'll also know that your other cards have seen use, even if the reported balance ends up being zero. In a few cases, detailed payment information is submitted to the bureaus and is kept on the report for 24–30 months. Many card companies don't submit that level of detail, though.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:43:00 GMT

Perfect🤗 That was exactly the info I was searching for. I am super new to this and have not seen this discussed in any forum on here. I am doing my building based off what I read on these forums and the inputs from all the contributors. It's working spectacular so far, about 100 points in 2 months. 6 months ago if you asked me about getting a credit card i would have laughed and said no chance. That was until I came across this site and figured out I was doing it all way wrong.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:47:48 GMT

So if I'm using the all the cards responsibly, keeping low util and closing balances, I should still be golden to get some luv from them because they can see that I used their card for tons of purchases? Correct?

Re: Super confused about low Util and CLI

Gmood1 — Sun, 21 Jan 2018 19:54:13 GMT

Yes ..for sure! Use the ones that allow, to pay your normal monthly expenses.

The CLIs will come. As well as those higher scores. Your scores aren't bad now. Actually they're about average.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 19:58:39 GMT

Sweet! Thank you so much🤗 That's what I'm going to start doing. I kinda thought I should be doing that but was confused. I'm definitely going to pay all my monthly bills next month with the amex delta so I can get the 30k opening offer miles lol. And since I'm thinking about that now, do I have to let the whole balance post on that to get the miles?

Re: Super confused about low Util and CLI

Gmood1 — Sun, 21 Jan 2018 20:05:11 GMT

No you don't. They're keeping tabs on your usage for the bonus. Put the debit card down and use all of your CC's instead. In fact only carry the Debit card for when you may need to pull cash out of an ATM. PIF Amex every month, they'll love you for it.

Re: Super confused about low Util and CLI

Anonymous — Sun, 21 Jan 2018 20:11:10 GMT

That's exactly what I'm going to do!!! Should I post a decent balance with them or keep it at the point where I'll stay with a low 8-10% CU total/all accounts? Then pif amex every month