topic Re: Credit Exercising: For CLI......Credercise? in Credit Cards

Credit Exercising: For CLI......Credercise?

ThisMightWork41c3 — Sat, 01 Sep 2018 23:03:56 GMT

Credit Exercising: for CLI

Been doing alittle research on the board here and Im still curious and have questions regarding the relationship
between Credit Line Increases (CLI), High Balance and the best way to "Exercise credit" in order to optimize its potential for growth.

While in the garden my goal is to grow some limts. So I want to throw this wall of text out there and see what some of you think. Please bare with me on this.

I understand Paying In Full (PIF) is a necessity -- with some exceptions, of course. However If I were to request a CLI every 61 or 91 days (as Ive seem recommended), and if my reported balance is $0.00 all the time from paying in full (prior to statement cut),that --to me--- doesnt seem like it shows I need or want a CLI. It doesnt justify the need for increasing the limt and therefore I could see the request being rejected by a CSR. "Remember Im thinking this through the best I can, so dont throw anything at your monitor just yet."

Each CRA has a record of the culmulative amount of money spent on a given card for one billing cycle, referred to as HIGH CREDIT (Equifax), HIGH BALANCE (TransUnion), and HIGHEST BALANCE (Experian). This amount is always the highest point that your spending has reached in the account's history and will never ever come down as far as I can tell. So does this figure get factored into the consideration for CLI?

If so, then I propose the following strategy of taking some credit card accounts through an exercise:

Lets consider 5 accounts total with various CL. The idea is to maximize rewards and points whereever possibleas well. So this may take some rotating of account balances. (Not Balance Transfers (BT), unless there are no BT fees and 0.% apr!) Each month using a different account more than another. And by doing so in the process, Try to establish at some point a high balance for each. Still paying in full mind you. Now just (30-60 days) before I start to apply for CLIs, switch to a AZEO or just make sure that my utilization is bewteen 3-6%. (these are expenses that would normally occur over with th exception of month1)

This would show the creditor that the user is utilizing (slightly) over 50% of available credit. The % could be higher. But the point is to show a need for an increase by using the account more. No manufactured spending, just regular old monthly expenses normally occured.

Does anybody think this exercise will work or do I need to go stick my head in a garden pail?

Your thoughts are appreciated.

Re: Credit Exercising: For CLI......Credercise?

iv — Sat, 01 Sep 2018 23:58:19 GMT

@ThisMightWork41c3 wrote:

Each CRA has a record of the culmulative amount of money spent on a given card for one billing cycle, referred to as HIGH CREDIT (Equifax), HIGH BALANCE (TransUnion), and HIGHEST BALANCE (Experian). This amount is always the highest point that your spending has reached in the account's history and will never ever come down as far as I can tell.

I've noticed, at least with some lenders, that it will eventually come down, if that high-water mark is long enough ago.

In practice, they seem to use a rolling window (4 years, in a specific case that I was paying attention to), and report the highest balance in that window. Once your "lifetime" high balance passes out of that window, the reported number will drop to the remaining highest balance in the window.

As for the rest of your post... well, there's nothing wrong with it (in that it won't cause any real damage to your credit, nor will it cost you any money) - but...

I think that you are massively over-thinking this. Many/most lenders just don't care about your highest previous balance on their card.

Current credit score and income matter far more, and if they are looking at balances - they are far more likely to be looking at total spend on the card in the last 6/12/24 months than at a one-month high balance.

Unless you are specifically getting CLIs denied for "insufficient use" or similar phrasing from particular lenders... don't worry about it.

Re: Credit Exercising: For CLI......Credercise?

Anonymous — Sun, 02 Sep 2018 00:08:06 GMT

Don’t use the AZEO method until you are ready to ask for CLI. I think you should let the record show your usage fully and then 30 days prior to asking use the AZEO method and ask. I don’t think it’s necessary to ask every 2-3 months. Once every 6 months is adequate imho

Re: Credit Exercising: For CLI......Credercise?

ThisMightWork41c3 — Sun, 02 Sep 2018 00:19:04 GMT

Understood, thats for the reponse.

Re: Credit Exercising: For CLI......Credercise?

ThisMightWork41c3 — Sun, 02 Sep 2018 00:19:34 GMT

Gotcha, thanks for the response.

Re: Credit Exercising: For CLI......Credercise?

Anonymous — Sun, 02 Sep 2018 01:19:20 GMT

@ThisMightWork41c3 wrote:
Gotcha, thanks ...

I like your thinking, TMW, although I doubt your methodology would be effective. Though I do hope you'll investigate & report back.

There's a post in one of the Discover threads that logs incredible CLI growth over like 25 months with that card. I remember the poster saying he asked for a CLI every Monday, and then over time he mixed in different "techniques." You might want to search that one out. Note: it's not one of the ancient 2008 posts; much more recent, I'd guess in last 6 months.

My (current) philosophy: If you're not asking, you're not trying.

Also it's easier to know who you're referring to if you quote the post. 1st you hit the REPLY button on the bottom right of the post; then when the window opens look for the QUOTE button on the right which then shows the original poster's text. It's more meaningful that way for everybody, I think. Should the quoted text be more wordy than need be you can always quote only what you wish to reply to (like I just did with your post).

Re: Credit Exercising: For CLI......Credercise?

ThisMightWork41c3 — Sun, 02 Sep 2018 01:13:10 GMT

@Anonymous

Also it's easier to know who you're referring to if you quote the post. 1st you hit the REPLY button on the bottom right of the post; then when the window opens look for the QUOTE button on the right which then shows the original poster's text. It's more meaningful that way for everybody, I think.

Thanks for the tips!

Re: Credit Exercising: For CLI......Credercise?

Anonymous — Sun, 02 Sep 2018 01:46:34 GMT

@ThisMightWork41c3 wrote:

Thanks for the tips!

This isn't the post I'm thinking of, but it shows similar results (maybe better): from 4500 to 29600 in 12 months. Check it out.

Re: Credit Exercising: For CLI......Credercise?

ThisMightWork41c3 — Sun, 02 Sep 2018 02:32:40 GMT

@Anonymous wrote:
@ThisMightWork41c3 wrote:

Thanks for the tips!

This isn't the post I'm thinking of, but it shows similar results (maybe better): from 4500 to 29600 in 12 months. Check it out.

Brilliant, this helps alot, thanks!

Re: Credit Exercising: For CLI......Credercise?

SweetCreditObsession — Sun, 02 Sep 2018 03:03:58 GMT

Excellent question. I am curious to see what others think.