topic Re: How much does monthly spend matter in Credit Cards

How much does monthly spend matter

Anonymous — Fri, 27 Dec 2019 06:01:42 GMT

Which card issuers care most about monthly spend/swipes as far as relationship building and future CLIs.

Re: How much does monthly spend matter

Revelate — Fri, 27 Dec 2019 06:24:16 GMT

I would suggest all of them care, but as a general rule Chase and Amex are probably the big two that I am aware of where heavy use will be in your favor in the future.

Would be interested to hear other opinions though as I haven’t kept track of the more ballin’ credit cards.

Re: How much does monthly spend matter

Anonymous — Fri, 27 Dec 2019 06:29:20 GMT

Chase definitely cares when it comes to the credit line you have (and potential increases).

Re: How much does monthly spend matter

I_Love_Cards — Fri, 27 Dec 2019 07:05:05 GMT

Capital One likes significant use over multiple consecutive months if you’d like a CLI from them.

Based on the Apple Card CLI thread, it seems they also want to see significant utilization (among other things).

Re: How much does monthly spend matter

donotpassgo — Fri, 27 Dec 2019 07:11:45 GMT

Paypal 2% MC went from 3K to 16K after CLI with 6 months of heavy usage.

Average $1450 a month, PIF, sometimes slightly above $1700, that's it.

Re: How much does monthly spend matter

NRB525 — Fri, 27 Dec 2019 07:42:57 GMT

@Anonymous wrote:
Which card issuers care most about monthly spend/swipes as far as relationship building and future CLIs.

OP which cards do you currently have?
Limits on each card?

Re: How much does monthly spend matter

Aim_High — Fri, 27 Dec 2019 18:51:43 GMT

@Anonymous wrote:
Which card issuers care most about monthly spend/swipes as far as relationship building and future CLIs.

Agreed that heavy use is always appreciated, although some lenders are more sensitive to it than others. Chase, Capital One, and Apple/GS as mentioned are all good examples.

Ironically, I think my PIF strategy (and paying multiple times per month before statement cut) has worked against me in some respects. This is a strange phenomenon to me, and actually a little annoying. You'd think that lenders would be happy with a customer who PIF early, and maybe the lender getting the payment is happy. But I think it has held back my SL on new cards somewhat when lenders see what appears to be non-use of my other credit lines. I now believe that applicants with similar high scores and income may get higher SLs when lenders see some utilization on their other cards. (The use of my cards that never posts to a new balance on my CR due is basically invisible use of my credit lines.)

Re: How much does monthly spend matter

Anonymous — Fri, 27 Dec 2019 18:58:33 GMT

I think that banks want to see you utlilizing more. Navy for instance once gave me $8800 whilst I was maxed out on another card of theirs and at 55% utilization overall.

Re: How much does monthly spend matter

NimbusIII — Fri, 27 Dec 2019 20:38:31 GMT

Card companies will typically use the transactional basis and previous retained score as a first determination on CLI. Both the amounts and number of transactions come into play, as the majority of card generated revenue is produced from transactional fees rather than interest from balance carry overs. Each card company has its own algorithms for scoring. If you lack in transactional usage and or your last request for CLI is longer than 24 month the company may require an additional pull of your credit. Typically if you utilize 25% -15% and carryover 5% or less you would be in primary tier zone. Some companies use a Quarterly/Trimester/Bi-annual scale and some evaluate this per statement period. This is why most recommendations For CLI evaluation be made at minimum 6 months. Keep in mind that with some companies the higher you go on CL the more you are expected to spend to hit there ratio. If your utilization is two low or if you retain high balances and pay off moderate chunks they may drop your CL at their digression.

Re: How much does monthly spend matter

Anonymous — Fri, 27 Dec 2019 20:53:20 GMT

@Anonymous wrote:
I think that banks want to see you utlilizing more. Navy for instance once gave me $8800 whilst I was maxed out on another card of theirs and at 55% utilization overall.

Navy is a strange beast. I have a $12,700 Platinum, $4K cashRewards, and $500 CLOC and despite the fact I haven't used any of my NFCU credit for anything substantial since I got my $2500 $0/0% BT paid off earlier this year, they still gave me another $2K on my cashRewards earlier this month to bring it to $4K. Just a few months ago I asked for a CLI and third card and was denied for maximum unsecured limit. 🤷‍♂️

Synchrony is another one that doesn't need much spend. My Amazon card has grown from $1800 to $6K and it hasn't gotten much use and my B&H Payboo grew from $5K to $7500 after a single $250 purchase. I actually probably could have had more on that one by now but I haven't asked because my Sync exposure is too high.

Disco is a total puzzle all the way around.

Capital One wants lots of spend.

Re: How much does monthly spend matter

Kforce — Fri, 27 Dec 2019 21:13:19 GMT

Ironically, I think my PIF strategy (and paying multiple times per month before statement cut) has worked against me in some respects.

Yes your $440,000 worth of credit lines shows PIF and paying multiple times per month is not working !

Maybe it is related to how much available credit you have that is making new apps start at a lower limit.

Cutting all your cards to 20k, and getting rid of 10 cards might make a new card start at 20k. (Just a joke)

Just trying to show that there are a lot of factors issuers use, and different views of what they look at.

I do believe PIF and paying multiple times per month hurts if one is on a mission to maximize CL's.

At the same time I believe nice CL's can be received with minimum spend, PIF and paying multiple times per month. (My own history with CC's)

Is it necessary or smart to maximize CL's is my question ?

It is one of the most sought after things on the Myfico forum and I have no understanding of why.

I cap all my cards at a level that is conservative for my income, credit scores and spend.

Re: How much does monthly spend matter

recoveringfrombk7 — Sat, 28 Dec 2019 01:19:57 GMT

From my personal experience I would add Discover. I started with a secured card after ch7 discharge (Discover not IIB) at 500, over time (500 at a time) I maxed it to 2500$. Used it as my daily driver for a year, running up to $2200/mo through it, always paying in full every paycheck. Card still hasn't graduated, but at the 1 year mark I prequalified unsecured and ended up with a $14,500 SL*. Seems outrageous with a BK 14 months post discharge, but I think my income + 1 year of heavy use relative to CL is what made that happen.

*I had to call in after sending my DL because we had recently moved. My husband sitting across from me nearly choked on his breakfast when he heard the limit. 😂

Re: How much does monthly spend matter

Anonymous — Sat, 28 Dec 2019 02:02:55 GMT

I think with DISCOVER, they might factor in "time served". I requested a CLI with them after about 3 years from the previous. I got it. Two weeks later, I tried again. Failed due to "not enough experience at the current credit line" or something of that sort. It sounded a little different than "I just gave you a CLI, wait 6 months". I don't put a lot of spend on it, but I'm thinking over time it will still grow. One poster on the forum has a very high CL with them, but had the card for something like 30 years.

Re: How much does monthly spend matter

recoveringfrombk7 — Sat, 28 Dec 2019 02:13:11 GMT

@Anonymous wrote:
I think with DISCOVER, they might factor in "time served". I requested a CLI with them after about 3 years from the previous. I got it. Two weeks later, I tried again. Failed due to "not enough experience at the current credit line" or something of that sort. It sounded a little different than "I just gave you a CLI, wait 6 months". I don't put a lot of spend on it, but I'm thinking over time it will still grow. One poster on the forum has a very high CL with them, but had the card for something like 30 years.

Agreed. I just think there is more than one way to accomplish things. I also think their language is indicative of that "not enough experience managing current limit" can be satisfied two ways: 1) By having a high limit and not using it, or 2) By having a high limit, using it, and paying on time well beyond the minimum payment/staying out of danger zones utility wise. Basically, be a responsible human. If you demonstrate need we got your back sooner if need be.

Re: How much does monthly spend matter

Remedios — Sat, 28 Dec 2019 02:40:14 GMT

All lenders want to be your main squeeze, however, some dont require too much use if growing card is the goal. Amex comes to my mind.

Others, like Capital One thinks you should be buying organs on black market to meet their expectations on how much their cards should be used.

Discover grew for me with a lot of use, but it also grew with almost no use. I alternate between loving and hating them, sometimes simultaneously.

I've received one increase on my Freedom when it was three months old. I was so excited they approved me (finally) I did not care about categories. That passed quickly. No increases on CSP, but it started with great limit (actually freedom did too), one that most likely will never require me to ask for increase, unless I need utilization padding some day.

US Bank, spending quite a bit seemed to work. I got my increases on relatively new cards via SP, happy camper all around.

So while spend is important, they have to "like" your profile, too. For some people everything works, and for some nothing will work with particular lender. In those cases, just move on. Big sea, plenty of fishy swimmin' around.

Re: How much does monthly spend matter

simplynoir — Sat, 28 Dec 2019 03:10:58 GMT

AMEX revolvers they don't really care and limits can grow big without income verification, charge cards you can't spend $500-$1000 a month on your Gold card and out of the blue charge $10k and expect it to go through without some moderate spend. Disco seems like playing hard to get so take that as you will. CapOne wants your next born child to get an increase and with account combinations gone for the moment no real way to grow limits otherwise. Chase is weird to me because they hate giving increases so new accounts is usually the way to go there with acct combinations but at least you can ask for them yourself through your acct. Bank of America was another that used to do HPs for increase but went SP so they're good as long as you shoot for the moon and let them counter you; spend and/or assets held with them help with increases. US Bank another tricky one because they appear to give SP CLIs at random even with HP language present, spend seems to help here and like BofA assets may help as well. Citi is somewhat stuborn depending on product but they're SP with optional HP increases and can grow steadily as long as adhere to CLI schedule. Sync accounts like Paypal credit with their Credit Solutions department can make any card grow like a weed in a short time period

I'm sure there are others but those are the ones that come to mind atm

Re: How much does monthly spend matter

Aim_High — Sat, 28 Dec 2019 04:21:35 GMT

@simplynoir wrote:
AMEX revolvers they don't really care and limits can grow big without income verification, charge cards you can't spend $500-$1000 a month on your Gold card and out of the blue charge $10k and expect it to go through without some moderate spend. Disco seems like playing hard to get so take that as you will. CapOne wants your next born child to get an increase and with account combinations gone for the moment no real way to grow limits otherwise. Chase is weird to me because they hate giving increases so new accounts is usually the way to go there with acct combinations but at least you can ask for them yourself through your acct. Bank of America was another that used to do HPs for increase but went SP so they're good as long as you shoot for the moon and let them counter you; spend and/or assets held with them help with increases. US Bank another tricky one because they appear to give SP CLIs at random even with HP language present, spend seems to help here and like BofA assets may help as well. Citi is somewhat stuborn depending on product but they're SP with optional HP increases and can grow steadily as long as adhere to CLI schedule. Sync accounts like Paypal credit with their Credit Solutions department can make any card grow like a weed in a short time period

+1 Good summary

Re: How much does monthly spend matter

Aim_High — Sat, 28 Dec 2019 04:59:26 GMT

@Kforce wrote:
Ironically, I think my PIF strategy (and paying multiple times per month before statement cut) has worked against me in some respects.
Yes your $440,000 worth of credit lines shows PIF and paying multiple times per month is not working !
Maybe it is related to how much available credit you have that is making new apps start at a lower limit.
Cutting all your cards to 20k, and getting rid of 10 cards might make a new card start at 20k. (Just a joke)
Just trying to show that there are a lot of factors issuers use, and different views of what they look at.
I do believe PIF and paying multiple times per month hurts if one is on a mission to maximize CL's.
At the same time I believe nice CL's can be received with minimum spend, PIF and paying multiple times per month. (My own history with CC's)
Is it necessary or smart to maximize CL's is my question ?
It is one of the most sought after things on the Myfico forum and I have no understanding of why.
I cap all my cards at a level that is conservative for my income, credit scores and spend.

You sort of missed my point. Some lenders value my high credit score, thick file, and high income and give me starting limits that fall in the middle of the pack relative to my other scores. Then, other lenders give me limits that, compared to approvals posted my My Fico with profiles that may not be as strong as mine in some respects, have given me lower Starting Limits that surprised me. So yes, my TCL of $440K coupled with low posted monthly utilization is the factor that I most recently have identified as to why some lenders are more generous with other applicants based on other factors. I found that noteworthy and wanted to tell others about my experience. And yes, I'm (partially) on a mission to raise my credit limits, so that bolded sentence above applies.

Yes, high credit limits are a focus for many of us. If you like your conservative limits, there's nothing wrong with that. We all have our preferences and there is plenty of room for different schools of thought on My Fico. As I have often pointed out, there is a LOT of background information and data points about other members that we don't see or understand, so comparing different profiles, lifestyles, and circumstances can be a pointless exercise. I have several reasons for wanting to increase my limits as high as possible and I'm sure they are similar to many other My Fico members. I'll try to explain some of my thought processes.

First, utilization padding. As I've worked on my credit, I have become increasingly aware of how much utilization is used to evaluate credit profiles, and I think the impact is much too exaggerated from the FICO standpoint. They give you "x" amount of credit to use, because that is what they think you can successfully manage, but then FICO lowers your score (uses it against you) if you run up balances, even though they know very little about your complete financial picture. Very frustrating!! So playing the game, utilization padding helps you to have a credit line of $20,000 meaning you can actually USE only $2,000 (about 10%) of it without sweating what you're doing to your score. I'll never need or use even 1/10th of my credit lines, but it's nice to have them high for that very reason.

Second, one of my credit score services mentioned that even though I had a very high FICO, that one factor holding me back from even higher was that my highest credit limit was lower than other people with similar scores. Hmmmm..... So that got me to investigating and learning how to increase credit limits even higher. I learned that it was true: my limits WERE lower. I hadn't been pushing lenders to give me the higher limits and once I got more pushy, they quickly obliged. In turn, my credit scores did go up somewhat higher. And I've learned that even my relatively high limits are not nearly as high as many other people, thanks to My Fico.

Three, my household disposable income has risen significantly in recent years, and we are able to afford higher spending. Even though we don't do it normally, it's nice to know if we want to splurge on a special vacation or other indulgence, that our credit limits will be there to support it safely. High credit limits are no longer a danger.

Four, I'm at a point in my life where I have high credit scores and high income, so I'm in the driver's seat more than I've ever been in my life regarding my credit accounts. It's fun to see how high I can drive my limits. I'm a few years away from retirement where it may be more difficult to increase my limits once my income drops, so I'd like to push my available credit as high as I can now which will give me more options in the future. Inflation will have a moderating effect on those high limits as I slip further into retirement.

Which brings up Five. I have enough decades of managing my credit that I trust my ability to handle high credit lines without screwing it up. I wouldn't recommend just anyone do what I and others have done. It's very risky for someone who is not disciplined and careful about their credit habits.

Re: How much does monthly spend matter

recoveringfrombk7 — Sat, 28 Dec 2019 05:53:14 GMT

Not remotely in your boat, but it all makes sense to me relative to one's income. Now that I have a decent income and don't actually need credit like I once did, I find myself offended by paying cash/using my checking account for purchases regardless of size. Rewards are factored in everywhere when you are the buyer (some places charge an outright credit processing fee, but in other cases it's just built directly into the price tag of a given item). So, if I am not earning rewards when spending my money I am the only player in the game that's a chump (my personal opinion, and certainly not meant as an insult).

I PIF all the time now and I'm fine that it might slow me down a bit in terms of CLI, but I want the limits available to make big purchases that I have cash for because I want something in return for spending that money. For example, while maybe I won't be booking a fancy vacation in the near future, I do plan on buying a used vehicle and putting 10k+ down. I'm putting that money down on a card and immediately paying it off. I'm getting my reward. If my income were your income and my spending were your spend, I'd pursue limits like your limits. I don't really see a problem with it, especially so if you're staying very low on util and largely PIF. Just my unsolicited 0.02.

Re: How much does monthly spend matter

AverageJoesCredit — Sat, 28 Dec 2019 12:08:01 GMT

Its easy for someone with high income,established credit and high credit limits to look down at those chasing cli but in the end everyone here on this forum has their own reasons for doing so. We need to remember no matter how good ones credit is , a credit limit can be taken away in a blink of an eye and simple mistakes or life altering ones can affect ones credit in an instant. I believe usage always plays a part in determining ones credit increase ability but as always stated, alot of other factors involved. Each bank has their own criteria. If one really wants more credit with a lender use their card and use it responsibly