topic Re: How to get a higher credit limit? in Credit Cards

How to get a higher credit limit?

Anonymous — Mon, 25 Apr 2011 18:16:21 GMT

I make $50k a year, nothing amazing but a nice wage. My credit is pretty crummy, but I have five years of credit card history that is 100% on-time payments. I have never not paid at least the minimum payment on my cards. I have crappy limits, 6000, 1500, 750 and 500. None of them will raise them. What can I do to get my credit limits raised? If I could get one card with a $10k limit, I would use it and none of the others.

Any advice is appreciated.

Re: How to get a higher credit limit?

visorboy1974 — Mon, 25 Apr 2011 18:32:04 GMT

I wouldn't consider $6K crappy. As for the other ones, which banks are they with? That'll give us some insight as to whether you have any hope for them to grow with time.

Re: How to get a higher credit limit?

Anonymous — Mon, 25 Apr 2011 18:50:26 GMT

$6000 USAA

$1500 Wells Fargo

$750 Capital One

$500 Capital One

No, the $6000 isn't a crappy one. Infact, if I could increase it by $4k and move all of my credit over to USAA I would. They are an awesome entity, their online system is awesome and their customer service is exceptional. Either way, I have asked all of them for an increase and they've all said not at this time.

From your experience, what is the best thing to do to position yourself for a credit line increase?

Re: How to get a higher credit limit?

aftermath — Mon, 25 Apr 2011 18:56:28 GMT

@Anonymous wrote:
$6000    USAA
$1500    Wells Fargo
$750      Capital One
$500      Capital One

No, the $6000 isn't a crappy one. Infact, if I could increase it by $4k and move all of my credit over to USAA I would. They are an awesome entity, their online system is awesome and their customer service is exceptional. Either way, I have asked all of them for an increase and they've all said not at this time.

From your experience, what is the best thing to do to position yourself for a credit line increase?

1) Pay off all of your balances to below 10%.

2) Let the accounts age for a few months.

3) Call in and request a CLI (not Capital One though because they don't do customer initiated CLI)

Re: How to get a higher credit limit?

visorboy1974 — Mon, 25 Apr 2011 18:58:12 GMT

@Anonymous wrote:
$6000    USAA
$1500    Wells Fargo
$750      Capital One
$500      Capital One

No, the $6000 isn't a crappy one. Infact, if I could increase it by $4k and move all of my credit over to USAA I would. They are an awesome entity, their online system is awesome and their customer service is exceptional. Either way, I have asked all of them for an increase and they've all said not at this time.

From your experience, what is the best thing to do to position yourself for a credit line increase?

I just saw your credit scores. Your best bet for a CLI is to work on the scores some...at least get them to 650 or so. Are the Cap One cards a part of the Credit Steps program? If they are, you should see some auto CLIs on them. I'm not sure about Wells Fargo. They won't touch me and my score is over 700 (of course I have a previous BK on file though).

Re: How to get a higher credit limit?

visorboy1974 — Mon, 25 Apr 2011 19:00:02 GMT

@aftermath wrote:

@Anonymous wrote:
$6000    USAA
$1500    Wells Fargo
$750      Capital One
$500      Capital One

No, the $6000 isn't a crappy one. Infact, if I could increase it by $4k and move all of my credit over to USAA I would. They are an awesome entity, their online system is awesome and their customer service is exceptional. Either way, I have asked all of them for an increase and they've all said not at this time.

From your experience, what is the best thing to do to position yourself for a credit line increase?
1) Pay off all of your balances to below 10%.

2) Let the accounts age for a few months.
3) Call in and request a CLI (not Capital One though because they don't do customer initiated CLI)

Agreed on all 3. 1 & 2 will be what gets your scores trending in the right direction.

Re: How to get a higher credit limit?

Anonymous — Mon, 25 Apr 2011 20:14:38 GMT

opps

Re: How to get a higher credit limit?

Cranston — Mon, 25 Apr 2011 21:48:21 GMT

open an account with PSECU and go for their combo.

Re: How to get a higher credit limit?

Anonymous — Mon, 25 Apr 2011 22:41:15 GMT

@Cranston wrote:
open an account with PSECU and go for their combo.

Would be an awesome idea, seeing as how they have an excellent card available, if I met one of their membership criterias.

Re: How to get a higher credit limit?

haulingthescoreup — Mon, 25 Apr 2011 23:04:32 GMT

@Anonymous wrote:
@Cranston wrote:
open an account with PSECU and go for their combo.
Would be an awesome idea, seeing as how they have an excellent card available, if I met one of their membership criterias.

Join the Pennsylvania Recreation and Parks thingy. Easy to do, and warm fuzzies on helping the great outdoors, even if you don't live in PA. Twenty bucks does the job, plus the $5 or whatever-it-is funding for the PSECU share account.

Yes, you too can join PSECU and find out your EX FICO score!

Re: How to get a higher credit limit?

creditguy-378 — Mon, 25 Apr 2011 23:15:36 GMT

Re: How to get a higher credit limit?

frddlawson — Tue, 26 Apr 2011 00:08:27 GMT

The key for credit line increases is to make yourself look more attractive. Creditors like to see activity on accounts, low utility( typically under 20% but 10% is ideal), and no recent derogatory information on credit reports. If there are some blemishes on your credit report, I suggest that you work on those things first before requesting an increase. Though some creditors only look at account activity, others look at credit history either hard or soft inquiry. So we want to cover ourselves all the way around just to make sure. And also allow time for improvements, both account history and credit history.

Re: How to get a higher credit limit?

Anonymous — Tue, 26 Apr 2011 02:04:35 GMT

My utilization right now is horrible. I am at something like 90%. Next month, after everything reports, it should be in the 70% range. Within a year I plan to have everything paid off. I have had my Wells Fargo card for over five years. When I originally got it, they gave me a $1000 CL. After a year or so they bumped it up to $1500. I have requested a CLI every year since they (just did it for 2011 a couple of days ago) and they deny it. Every. Darn. Time. I reiterate that it has NEVER been late. I have ALWAYS paid more than the minimum but I do keep a balance on it. Trying to fix that.

On another note, none of them will lower my interest rate, either. My wife's Wells Fargo card went from 5.46% to 19% for no reason. I loathe Wells Fargo.

Re: How to get a higher credit limit?

visorboy1974 — Tue, 26 Apr 2011 02:15:45 GMT

@Anonymous wrote:
My utilization right now is horrible. I am at something like 90%.

I think that answers the question as to why nobody's giving you a CLI. Get your utilization below 50% and then you'll at least have a shot.

I was at about 85% utilization and nobody would touch me for an increase. I had to get it below 50% before the CC issuers would even give me as little as a $100 increase. Now that I have my utilization under control, they are MUCH more willing to increase me.

Re: How to get a higher credit limit?

cw81 — Tue, 26 Apr 2011 02:23:46 GMT

@visorboy1974 wrote:

@Anonymous wrote:
My utilization right now is horrible. I am at something like 90%.

I think that answers the question as to why nobody's giving you a CLI. Get your utilization below 50% and then you'll at least have a shot.

I was at about 85% utilization and nobody would touch me for an increase. I had to get it below 50% before the CC issuers would even give me as little as a $100 increase. Now that I have my utilization under control, they are MUCH more willing to increase me.

Re: How to get a higher credit limit?

vish1 — Tue, 26 Apr 2011 02:27:43 GMT

@cw81 wrote:

@visorboy1974 wrote:

@Anonymous wrote:
My utilization right now is horrible. I am at something like 90%.

I think that answers the question as to why nobody's giving you a CLI. Get your utilization below 50% and then you'll at least have a shot.

I was at about 85% utilization and nobody would touch me for an increase. I had to get it below 50% before the CC issuers would even give me as little as a $100 increase. Now that I have my utilization under control, they are MUCH more willing to increase me.
+1

OP:: Another concern to note here is, that if you don't do something for your Util sooner than soon, you may risk a special kind of AA called balance chasing, where lenders keep reducing your CL close to your balance whenever you pay down. This keeps can you maxed out all the time.

Re: How to get a higher credit limit?

Anonymous — Tue, 26 Apr 2011 02:41:56 GMT

OP:: Another concern to note here is, that if you don't do something for your Util sooner than soon, you may risk a special kind of AA called balance chasing, where lenders keep reducing your CL close to your balance whenever you pay down. This keeps can you maxed out all the time.

Well that is a scary concept, but on the bright side, as I have been paying them down, this hasn't been happening (thus far.)

Re: How to get a higher credit limit?

aftermath — Tue, 26 Apr 2011 17:41:28 GMT

@Anonymous wrote:

OP:: Another concern to note here is, that if you don't do something for your Util sooner than soon, you may risk a special kind of AA called balance chasing, where lenders keep reducing your CL close to your balance whenever you pay down. This keeps can you maxed out all the time.

Well that is a scary concept, but on the bright side, as I have been paying them down, this hasn't been happening (thus far.)

It doesn't happen when you make small payments. It happens once your balance is low.

I had an Amex Blue Cash that I maxed out to $3000. I paid a little over the mimimum due every month, and once I finally got it paid down to $1000, they reduced my credit line to $1500. Once I paid it down to $500, they reduced my credit line to $500.

If you aren't able to pay your balances down quickly and keep your utilization low, then you don't need more credit. <--- that is what the banks are telling you.

Re: How to get a higher credit limit?

Anonymous — Tue, 26 Apr 2011 17:52:49 GMT

It doesn't happen when you make small payments. It happens once your balance is low.

I had an Amex Blue Cash that I maxed out to $3000. I paid a little over the mimimum due every month, and once I finally got it paid down to $1000, they reduced my credit line to $1500. Once I paid it down to $500, they reduced my credit line to $500.

If you aren't able to pay your balances down quickly and keep your utilization low, then you don't need more credit. <--- that is what the banks are telling you.
I contacted my major cards (USAA & Wells Fargo) and voiced my concern about the possibility of this being done to me. USAA said they don't do that. WF said they do but only when they think there is abuse on the account. IE: over utilization (she said it would only happen if I am constantly OVER my limit and then suddenly pay it down, they might drop it the limit. In my case, I have never been over.) or under utilization such as a $2000 credit limit and NEVER charging over $200 to it.

Re: How to get a higher credit limit?

vish1 — Tue, 26 Apr 2011 18:30:17 GMT

@Anonymous wrote:

It doesn't happen when you make small payments. It happens once your balance is low.

I had an Amex Blue Cash that I maxed out to $3000. I paid a little over the mimimum due every month, and once I finally got it paid down to $1000, they reduced my credit line to $1500. Once I paid it down to $500, they reduced my credit line to $500.

If you aren't able to pay your balances down quickly and keep your utilization low, then you don't need more credit. <--- that is what the banks are telling you.
I contacted my major cards (USAA & Wells Fargo) and voiced my concern about the possibility of this being done to me. USAA said they don't do that. WF said they do but only when they think there is abuse on the account. IE: over utilization (she said it would only happen if I am constantly OVER my limit and then suddenly pay it down, they might drop it the limit. In my case, I have never been over.) or under utilization such as a $2000 credit limit and NEVER charging over $200 to it.

I won't bother to trust the WF CSR on this, they have no understanding of how risk algorithms work. I would still advice getting balances lower (if you can afford to).