topic Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit? in Credit Cards

Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

oceanbay — Fri, 10 Sep 2021 15:06:35 GMT

OK - TLDR:

Looking to maxmize the amount of $ I can qualify for on a new 0% APR CC
I already have $150K across 6 cards that I pay off each month (each card has at least one transaction)
Question: is my best option to cancel half of my exisiting cards to ensure I position myself to get the maximimum amount of credit for the new 0% intro CC? My main goal is to get the highest available credit limit, I dont care about the other cards. Or, is there a better way?

The card I am aiming to get is the US Bank Platinum Visa (note: I already have an REI card with them, my guess I should cancel that one).

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

Aim_High — Fri, 10 Sep 2021 18:13:21 GMT

@oceanbay wrote:
Looking to maxmize the amount of $ I can qualify for on a new 0% APR CC

I already have $150K across 6 cards that I pay off each month (each card has at least one transaction)

Question: is my best option to cancel half of my exisiting cards to ensure I position myself to get the maximimum amount of credit for the new 0% intro CC? My main goal is to get the highest available credit limit, I dont care about the other cards. Or, is there a better way?
The card I am aiming to get is the US Bank Platinum Visa (note: I already have an REI card with them, my guess I should cancel that one).

Not enough information, especially without signature, but I also think you may have inaccurate expectations. Most often, it's not necessary to close accounts to add credit unless in more extreme cases or before applying with very conservative lenders.

Just to clarify, is the $150K your current Total Credit Limits or how much you charge and PIF or carry on other cards? (Yes, there are people with large business expenses that could be posting those kinds of numbers.) But I'm assuming the $150K is your Total Credit Limits.

Second, how is your TCL in relation to income? If you make more than $150K, you're at less than a 1x multiple of annual income, which shouldn't spook most lenders so there is probably no need to close any accounts. However, if you make $30K and you're already at 5x income in credit limits, that's a different picture.

Third, what debts do you have including mortgage, auto loans, student loans, or personal loans? If your debt is high relative to income, it can affect your credit limit. Lenders see open and unused credit limits as potential future debt, so high credit lines are more likely to become a concern if overall debt load is high. I've heard that in particular some mortgage brokers occassionally require accounts be closed to approve a mortgage loan.

Fourth, I would say the most important factor besides the above is picking a card and lender who is known to be more generous relative to profile in lending limits. They aren't all alike. Since you have a track record with US Bank, that should go in your favor. But it also depends on what other lenders where you already have history. For example, if you have a Navy Federal account, they are known to be very generous in limits for established members plus they have great BT offers.

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

oceanbay — Fri, 10 Sep 2021 18:31:01 GMT

I make $300k a year, $0 debt of any kind (no mortgage, no student loans, no carry-over CC balance, no car).

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

Aim_High — Fri, 10 Sep 2021 19:42:47 GMT

@oceanbay wrote:
I make $300k a year, $0 debt of any kind (no mortgage, no student loans, no carry-over CC balance, no car).

Based on that, I don't see any need to reduce existing credit limits.

One other factor I neglected to mention is that recent credit-seeking may inhibit starting limits. If you've added many cards in the past 6/12/24 months, gardening awhile longer can be helpful in getting higher limits. How old are your accounts?

If you're not happy with the limit, you can always go with a recon route. I've read of several successful recon decisions with US Bank over starting limits. Perhaps those with US Bank cards will add some data points. Also, with some lenders, you may be able to consolidate credit limits. Perhaps you could move all/part of the REI limit over once you are approved. Or do the same with a different lender where you already have credit, instead of applying with US Bank for the 0% APR card. That could give you the higher limit that you're seeking.

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

FinStar — Fri, 10 Sep 2021 20:23:53 GMT

@Aim_High wrote:
@oceanbay wrote:
I make $300k a year, $0 debt of any kind (no mortgage, no student loans, no carry-over CC balance, no car).
Based on that, I don't see any need to reduce existing credit limits.

One other factor I neglected to mention is that recent credit-seeking may inhibit starting limits. If you've added many cards in the past 6/12/24 months, gardening awhile longer can be helpful in getting higher limits. How old are your accounts?

If you're not happy with the limit, you can always go with a recon route. I've read of several successful recon decisions with US Bank over starting limits. Perhaps those with US Bank cards will add some data points. Also, with some lenders, you may be able to consolidate credit limits. Perhaps you could move all/part of the REI limit over once you are approved. Or do the same with a different lender where you already have credit, instead of applying with US Bank for the 0% APR card. That could give you the higher limit that you're seeking.

Unfortunately, US Bank (nor ELAN for that matter) do not reallocate or move CLs around -- just FYI.

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

NRB525 — Sat, 11 Sep 2021 00:08:44 GMT

OP what is the limit on the REI card?

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

Yankee2 — Sat, 11 Sep 2021 01:27:40 GMT

Not knowing what cards you have, but how I got a large CL on a new card was earlier closing and moving existing CL from one card to another from the same bank.

I had 2 CC from BOA. One $12.5k and the other $15k. (they were my 2 highest CL cards, my other cards were $10k or less)

I closed the $15k card, but moved it's CL to the $12.5k card to make the one card at $27.5k. I did that 8/2020.

I appe'd for the Chase FF that September and bam... $22k.

So if you looking for new high CL cards and are willing to close your existing cards, if you have multiples from a single lender, consolidate your CL before you app....

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

oceanbay — Mon, 13 Sep 2021 14:59:19 GMT

It's my smallet one, $10,000...but I also got it when my credit/income where worse about 2 years ago.

Someone mentioned "recon" what does that mean?

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

Aim_High — Mon, 13 Sep 2021 15:27:04 GMT

@oceanbay wrote:
Someone mentioned "recon" what does that mean?

@oceanbay, "recon" is short for reconsideration. When a credit applicant wants to appeal (to ask a lender to reconsider their decision on approval or terms such as starting limit), they may contact that lender (usually by phone) to talk to an underwriter. There are phone numbers circulating on the webz and on My Fico that list some "backdoor" contact numbers for different lenders.

Re: Maximizing credit limit on 0% APR CC with a lot of existing (but not used) credit?

cashorcharge — Mon, 13 Sep 2021 21:09:57 GMT

@Yankee2 wrote:
Not knowing what cards you have, but how I got a large CL on a new card was earlier closing and moving existing CL from one card to another from the same bank.

I had 2 CC from BOA. One $12.5k and the other $15k. (they were my 2 highest CL cards, my other cards were $10k or less)

I closed the $15k card, but moved it's CL to the $12.5k card to make the one card at $27.5k. I did that 8/2020.

I appe'd for the Chase FF that September and bam... $22k.

So if you looking for new high CL cards and are willing to close your existing cards, if you have multiples from a single lender, consolidate your CL before you app....

I can confidentially state that Yes, both Bank of America and Wells Fargo permit you to do this, as my own experience shows. I had applied for my 2nd BofA card, got a decent limit (you do need to make sure that when you get approved, that they don't take from another card to feed your new card...this is documented too) and my new card was given a decent limit and I immediately called and they reallocated from the card I wasn't using much to my new card. Kept the old card because of aging and now it has a smaller CL but the history is important. With WF, I requested SP CLI's on both accounts....they agreed and approved both...then I asked them to reallocate the majority to one and leave the other lower...even though both had just been given a CLI...they had no issue completing this for me.