topic Re: What should be my optimal strategy? in Credit Cards

What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:39:49 GMT

My Equifax FICO Score is 694.

I have 8 months of credit history & have the following credit limits:

Commerce Bank $500

Capital One $300

Macy's $100

I just got approved for a Southwest Airline card with $8500 credit line (so happy to get that...). My goal is to reach a total $100,000 credit limit (total of all CCs) within 2 years. Do you think it's a reasonable/realistic target? If yes, what should be my optimal strategy to reach this goal? I want to apply for new CCs which could give very high credit lines but I want to focus on those CCs who have the highest possibility of approving me, giving me highest credit lines & increasing my credit limits with time. Which CCs do you recommend in this regard?

Thank you very much in advance!

Re: What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:46:19 GMT

People will probably ask why you want that, is it for a specific need, or just a general goal. Answer doesn't really matter (apart from whether it is a good idea!).

Feasibility depends on your income more than credit score. At some stage, issuers don't want to give credit if there are outstanding potential credit lines way above income. Companies have different sensitivities to this, depending on their overall level of risk tolerance.

Re: What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:48:38 GMT

I have around $100,000 annual income (including bonuses). I need CCs because I use them & pay off them full.

Re: What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:52:07 GMT

Very agressive goal but might be possible with that income.

Suggest you open several secured cards with hightest limits available ($3k to $10K) with major banks, That will help you get to higher limits.

Re: What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:52:29 GMT

Why do I need to open secured cards with high limits when I already have a Southwest Airline Chase CC with $8,500?

Re: What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:52:33 GMT

And not open to all, but NFCU seems famous around here for giving very high (and unjustified!) credit limits on their cards, so if you are eligible, look there at some point.

Re: What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:54:18 GMT

Unfortunately I'm not eligible for NFCU. What other CCs in the market are famous for their approval & high credit limits?

Re: What should be my optimal strategy?

Anonymous — Fri, 30 Nov 2012 22:55:06 GMT

Also, if you just want to pay in full each month, you can also consider an Amex charge card with good rewards (gold PR one for example).

Re: What should be my optimal strategy?

Anonymous — Sat, 01 Dec 2012 02:18:20 GMT

@Anonymous wrote:
Why do I need to open secured cards with high limits when I already have a Southwest Airline Chase CC with $8,500?

Because you are in a big hurry! It is an extreme measure to accomplish an extreme goal!

Re: What should be my optimal strategy?

Anonymous — Sat, 01 Dec 2012 18:09:52 GMT

I have a similar kind of question

Re: What should be my optimal strategy?

Anonymous — Sat, 01 Dec 2012 18:13:04 GMT

I have a card with $5,500 limit. If I apply for a new card, wouldn't they give me a limit higher than $5,500 since I already have a card with this limit?

Re: What should be my optimal strategy?

daybreakgonesXe — Sat, 01 Dec 2012 18:16:26 GMT

@Anonymous wrote:
I have a card with $5,500 limit. If I apply for a new card, wouldn't they give me a limit higher than $5,500 since I already have a card with this limit?

Not necessarily...every creditor is different. Some consider giving CL that match or counter higher than certain cards on your report, but most of the time it's an algorithmically calculated limit based on aspects on your report or simply just from a CS/income situation.

Places like NFCU or USAA will give you a very inflated limit compared to your reports, but other lenders like CapOne, Chase, Discover, wouldn't even consider that type of limit based on those same stats!

Re: What should be my optimal strategy?

HiLine — Sat, 01 Dec 2012 18:33:04 GMT

I think you can achieve the goal with 5 application sprees, timed 6 months apart, starting today, before your Southwest card gets reported. For the first one, apply for the cards that don't offer high rewards so you can be approved with higher initial CL's. For the later ones, once you have already added high CL cards into your portfolio, you can shoot for better cards. Definitely throw Amex in the mix for their 61-day 3x CLI as well.

Re: What should be my optimal strategy?

Anonymous — Sat, 01 Dec 2012 19:40:29 GMT

Re: What should be my optimal strategy?

Anonymous — Sat, 01 Dec 2012 19:41:18 GMT

HiLine,

Can you please tell why should I apply for these 5 cards before my southwest card is reported?

Secondly, which banks/credit unions in the market match the highest credit limit on your current report? Can you please specifically highlight which 5 credit cards are the best bet for me?

Thanks

Re: What should be my optimal strategy?

HiLine — Sat, 01 Dec 2012 19:59:03 GMT

cowboyguy,

Every time you open a credit card, you gain debt allowance, which is not a good sign to creditors. Often when someone is in financial troubles, the person would try to accumulate as much debt as possible, then default. Creditors perceive new credit accounts as risk. If you apply before your new card gets reported, no one will be informed of the new card yet.

And notice that I said 5 application sprees, not 5 applications. You apply for multiple cards in each application spree. Sorry if I confused you.

Regarding your second question, I honestly have not spent much time investigating particular lenders' tendencies to match the highest credit limit from the borrower's portfolio. But many posters on here can give you their anecdotal information.

Re: What should be my optimal strategy?

Anonymous — Sat, 01 Dec 2012 21:10:02 GMT

HiLine,

If I apply for the new card before my Southwest is reported, how would that serve my purpose of getting high limits initially? Since they would consider my current Commerce Bank crd having $500 limit, wouldn't they give me a small limit & it will then take me a long time to get CLIs?

Re: What should be my optimal strategy?

HiLine — Sat, 01 Dec 2012 21:16:05 GMT

If some creditor already gave you such a high credit limit, chances are you'll get approved for similarly high limit cards. Since today is a new month, you also have one more month of credit history. Just make sure to avoid cards that are generally regarded as having tough criteria.

Re: What should be my optimal strategy?

Anonymous — Sat, 01 Dec 2012 21:48:42 GMT

What you're saying makes sense. I'm now just researching on those cards which do not have tough criteria & which are generous in giving high initial credit limits.

Anyone?

Re: What should be my optimal strategy?

Repo-ed — Sat, 01 Dec 2012 22:01:19 GMT

Guys, nobodies spiddy-senses went off within the OP?

$900 in TOTAL CL, and then hits us with SWA Siggy Visa with $8500 CL?!!?!?

This is a train wreck that I'll have to stop from watching.