topic Re: How much should I spend to maximize CLI $$$? in Credit Cards

How much should I spend to maximize CLI $$$?

pdxmike — Wed, 18 Jul 2018 20:32:04 GMT

I would like to increase my credit limits. I haven't been using my cards much, so it's understandable that I'm being declined for increases on the basis of a lack of history using my current limits.

My question, and I'll make this general so it helps other people and not just me, is how much should I spend to make an issuer think "this person could use more credit" without thinking "oh no, this person is in desperate need of new credit?"

What sort of utilization should I aim for that shows I can and do use my limit and pay it responsibly, without worrying the algorithm about overspending? Should I stay under a certain spending-to-income ratio, or does it not matter as long as I'm paying in full? Wouldn't spending near the limit and paying it off show most clearly that I could use a bigger limit, or would that just look like I'm dangerously maxing out my credit cards?

Should I pay before the statement end date in order to post a $0 statement balance, or only boost my spending on one card, or try anything else to reduce issuer anxiety about my spending increases?

Re: How much should I spend to maximize CLI $$$?

Kforce — Wed, 18 Jul 2018 22:01:47 GMT

Use the cards in the way that is best for your rewards and spending needs.

Don't waist you time moving spend to get CL increases.

They will come with time, normal spend and paying on time.

High correlation for increases from:

Income going up, time owning the card, payment history, and which issuer the card is from.

Low correlation from:

Spend and other card limits.

I believe that it depends on which creditor the cards are issues buy the most with time and payments as the next most important points

Re: How much should I spend to maximize CLI $$$?

wasCB14 — Wed, 18 Jul 2018 22:00:23 GMT

Giving a general answer to a general question...don't expect that spending a particular amount on a card will necessarily hasten the arrival of a CLI.

Could it help in some cases? Maybe. But in other cases, what you may just need is time.

It's easy to show a lender that you could use more credit...but that's not the same thing as convincing a lender it wouldn't be a high risk for them to extend more credit.

Re: How much should I spend to maximize CLI $$$?

Anonymous — Thu, 19 Jul 2018 00:08:00 GMT

Many times it is just a matter of time,scores and "reasonable" use. Yes income and cranberry do play a part also.

Join us over in the garden club.

Re: How much should I spend to maximize CLI $$$?

wasCB14 — Thu, 19 Jul 2018 00:55:10 GMT

@Anonymous wrote:
Many times it is just a matter of time,scores and "reasonable" use. Yes income and cranberry do play a part also.
Join us over in the garden club.

Is this an autocorrect? Or slang I don't get?

Re: How much should I spend to maximize CLI $$$?

simplynoir — Thu, 19 Jul 2018 00:58:11 GMT

@wasCB14 wrote:
@Anonymous wrote:
Many times it is just a matter of time,scores and "reasonable" use. Yes income and cranberry do play a part also.
Join us over in the garden club.
Is this an autocorrect? Or slang I don't get?

Garden thread slang that's sort of in-joke. It means utilization.

Re: How much should I spend to maximize CLI $$$?

Anonymous — Thu, 19 Jul 2018 01:03:05 GMT

@Kforce wrote:
Use the cards in the way that is best for your rewards and spending needs.
Don't waist you time moving spend to get CL increases.

And certainly don't waste MONEY by spending more than you would have anyway to try to get a CLI.

Re: How much should I spend to maximize CLI $$$?

wasCB14 — Thu, 19 Jul 2018 01:05:34 GMT

@simplynoir wrote:
@wasCB14 wrote:
@Anonymous wrote:
Many times it is just a matter of time,scores and "reasonable" use. Yes income and cranberry do play a part also.
Join us over in the garden club.
Is this an autocorrect? Or slang I don't get?
Garden thread slang that's sort of in-joke. It means utilization.

Oh, okay.

I do tend to skip the garden. Too much noise.

Re: How much should I spend to maximize CLI $$$?

peghede — Thu, 19 Jul 2018 01:15:31 GMT

make regularly 25, 30k monthly payments with one lender for 6 or more months will help with cli.

Re: How much should I spend to maximize CLI $$$?

wasCB14 — Thu, 19 Jul 2018 01:36:13 GMT

@peghede wrote:
make regularly 25, 30k monthly payments with one lender for 6 or more months will help with cli.

Easier to just put it on Cent if your private banker can't help with a CLI on a JPMR...

...if we're suddenly assuming OP has that kind of spend.

Re: How much should I spend to maximize CLI $$$?

pdxmike — Thu, 19 Jul 2018 03:13:31 GMT

There are ways to create that kind of spend without having that kind of money, but wouldn't at least some lenders balk at spending more money than you're earning, or would they not care as long as you're paying the balance?

Maybe I should focus my question:

What is the border area between credit use that creditors see as responsible and irresponsible? What ratios should I aim for or avoid to prove I can spend and pay meaningful amounts without looking like I'm too risky?

Re: How much should I spend to maximize CLI $$$?

Anonymous — Thu, 19 Jul 2018 03:35:59 GMT

@pdxmike
There are ways to create that kind of spend without having that kind of money, but wouldn't at least some lenders balk at spending more money than you're earning, or would they not care as long as you're paying the balance?

I don't think they'd care. There are plenty of people out there with personal businesses or "off the books" jobs that have income levels far greater than what are seen on paper. These types of individuals could certainly spend far more on their cards than would seem to be the case based on declared income.

Re: How much should I spend to maximize CLI $$$?

arkane — Thu, 19 Jul 2018 04:18:15 GMT

@pdxmike wrote:
There are ways to create that kind of spend without having that kind of money, but wouldn't at least some lenders balk at spending more money than you're earning, or would they not care as long as you're paying the balance?

Maybe I should focus my question:

What is the border area between credit use that creditors see as responsible and irresponsible? What ratios should I aim for or avoid to prove I can spend and pay meaningful amounts without looking like I'm too risky?

If you're talking about MS then forget it. Lenders don't take kindly to that at all, even if you're not using it to artificially inflate rewards.

And back to your original question: I'd say history and income are far more important than your monthly spend. Personal example: I got 3 more cards in November last year and my spending on my BoA card dropped like a rock (it was my only card for 5 years). I went from regularly swiping close to $1000 each month down to averaging $100 each month, maaaaaybe $200 on a very busy month. Had a 15K CL and still managed to CLI to 24K despite not needing any of it and barely using 2% of the original CL.

To be fair I hadn't asked for a CLI in 3.5 years, and I'm also a Preferred Rewards client. But this just goes to show how little monthly spend matters in the grand scheme. But if you must have an answer, I'd say keep your util below 30%, and definitely no more than 50%. That being said, if you have a long enough history with the bank and have the means for doing so, maybe you can try going >85% util one month, then PIF the day after the statement cuts to avoid triggering any AA algorithms. (>85% util is considered "maxed out" by FICO, also if you have a sudden and dramatic util spike, the computers will definitely keep close tabs on your account for any signs of (bust out) fraud)

Re: How much should I spend to maximize CLI $$$?

kdm31091 — Thu, 19 Jul 2018 10:26:58 GMT

@Anonymous wrote:
@Kforce wrote:
Use the cards in the way that is best for your rewards and spending needs.
Don't waist you time moving spend to get CL increases.

And certainly don't waste MONEY by spending more than you would have anyway to try to get a CLI.

This exactly. Use your cards and pay them, and just let time pass. CLIs will come to you eventually. I don't think spending (especially intentional, possibly unneeded extra spending) is the way to go.

Re: How much should I spend to maximize CLI $$$?

Peteyglad — Thu, 19 Jul 2018 13:25:32 GMT

Just to echo what others have said. You don't need to change speding habits for a CLI. I have had cards with all the major banks and the only one that denied me for a CLI for non usage was Capital One. For 2 years the sole reason they kept denying me a CLI was not enough credit line used. Fair enough.

Re: How much should I spend to maximize CLI $$$?

joltdude — Thu, 19 Jul 2018 13:39:46 GMT

@simplynoir wrote:
@wasCB14 wrote:
@Anonymous wrote:
Many times it is just a matter of time,scores and "reasonable" use. Yes income and cranberry do play a part also.
Join us over in the garden club.
Is this an autocorrect? Or slang I don't get?
Garden thread slang that's sort of in-joke. It means utilization.

I had to have the cranberry thing explained to me...

But it actually is quite amusing....

Abbreviation for utilization is UTI..... and if youve ever had a UTI.... one of proported things that can help is cranberry juice/cranberries...

Hence cranberry=UTI

Hence having a bigger cranberry=more uncomfortable and side effects...

Re: How much should I spend to maximize CLI $$$?

Shooting-For-800 — Thu, 19 Jul 2018 21:11:39 GMT

I put every purchase I can through a credit card no matter how big or how small.

I charge between $5,000-$10,000 per month.

It matters for both CLI and for rewards.

I earned over $100 per month on average in cash back. That is free money!

If you charge $100 per month and have a $5,000 limit, why would a bank give you $20,000 when they can give it to someone else who charges and pays $10,000 per month?

I am a firm believer in showing high (75% of CL) balances on CR then paying down to 1%.

It shows that you can handle large amounts of money.

I was denied for a $35,000 car loan once because my previous $50,000 car was only financed $20,000. The CU told me that I did not show that I could handle a $35k car loan because my highest previous was $20,000!

Re: How much should I spend to maximize CLI $$$?

arkane — Fri, 20 Jul 2018 01:58:00 GMT

I agree that amount charged each month certainly plays some role, but as others have noted and I've witnessed myself, it definitely takes a back seat to other more important factors.

If you can run up 75% of your CL with 100% necessary and legitimate expenses (in other words stuff you would've bought anyway regardless) then by all means go for it. But doing so for the sake of a CLI which may or may not happen is beyond foolish.

Re: How much should I spend to maximize CLI $$$?

Anonymous — Thu, 19 Jul 2018 23:58:52 GMT

@arkane wrote:

I agree that amount charged each month certainly plays some role, but as others have noted and I've witnessed myself, it definitely takes a back seat to other more important factors.

If you can run up 75% of your CL with 100% necessary and legitimate expenses (in other words stuff you would've bought anyway regardless) then by all means go for it. But doing so for the sake of a CLI which may or may happen is beyond foolish.

And, once you buy into the MyFico mindset of "cards must grow"... then a CLI is never enough. You go from $10K to $20K, and now think that if you don't get $40K, the issuer isn't taking into account your perfect payment record etc. Even if you charge $500 a month!

Re: How much should I spend to maximize CLI $$$?

pdxmike — Fri, 20 Jul 2018 00:50:12 GMT

I found this old comment:

"Usage of 50% or more of your current CL, and PIF … Every time I've received an auto-CLI from Chase it's been under those conditions."

https://ficoforums.myfico.com/t5/Credit-Cards/Chase-CLI/m-p/4426805/highlight/true#M1271959

Thoughts?