topic Re: Best utilization ratio for faster auto CLI? in Credit Cards

Best utilization ratio for faster auto CLI?

vwgrrc — Fri, 21 Jun 2013 04:45:42 GMT

Hi guys,

I want my Chase Freedom get a lucky auto CLI after 6 months as many ppl got for theirs. I was confused by the proper approach described by different sites. Here're 2 common opinions:

1. Use the card heavily (60%+) and always pay it down to 10% BEFORE closing date.

2. Use the card heavily (60%+) and pay if down to 10% AFTER closing date for earlier months. Then pay it down to 10% BEFORE closing date for the 6th month.

So which one is correct? I know 30%+ should be no good for my credit score. But is this talking about long term or short term? I don't care if it only has short term impact...

Is that a good way to show my bank that I need more credit by showing high balance on statement?

More tricks on getting auto CLI plz?

Thanks. Any advice would help!

Re: Best utilization ratio for faster auto CLI?

red259 — Fri, 21 Jun 2013 04:52:10 GMT

I have been using my card heavily and PIF right before the statement date so a zero balance reports to CRAs as I show a small balance on my other CC instead. I never thought this would impact my chance at an auto CLI with my Freedom, since I assumed Chase can see all my card activity regardless of the fact I pay it off way early. For example on a 3k limit in a month I may run up 1k in the first two weeks, then pay it down to zero then run up another 2k in the second two weeks and pay it down to zero before statement closes. Wouldn't Chase just see me using the card heavily and PIF by looking at their own records? Should I just run the balance up to the full 3k and then pay off before statement date all at once?

Re: Best utilization ratio for faster auto CLI?

CEOriginal — Fri, 21 Jun 2013 05:51:41 GMT

Before I knew any better, I would pay $50 each month on my Cap1 card. It started at $300 and stayed there for a year. I didn't know anything about auto CLI.. I would just charge up to about $250, then pay $50 each month until it got down to about $100.. then charge it back up.

Apparently Cap1 liked that, because I got an auto CLI up to $1,800 (the highest I've seem from this site), which coincidentally led me to myFico because I wanted to learn more.

The point I'm trying to make is that I don't think it's an exact science. Each lender is different. Each card is different. Each person is different. However, I would think that if you PIF, Chase wouldn't see activity post. So, if I were a betting man, I'd put my money on option 2.

Re: Best utilization ratio for faster auto CLI?

vwgrrc — Fri, 21 Jun 2013 06:13:32 GMT

@CEOriginal wrote:
Before I knew any better, I would pay $50 each month on my Cap1 card. It started at $300 and stayed there for a year. I didn't know anything about auto CLI.. I would just charge up to about $250, then pay $50 each month until it got down to about $100.. then charge it back up.

Apparently Cap1 liked that, because I got an auto CLI up to $1,800 (the highest I've seem from this site), which coincidentally led me to myFico because I wanted to learn more.

The point I'm trying to make is that I don't think it's an exact science. Each lender is different. Each card is different. Each person is different. However, I would think that if you PIF, Chase wouldn't see activity post. So, if I were a betting man, I'd put my money on option 2.

You charged 250 on you card but pay only 50 each month. That means you carry the balance thru due date? Don't you have to pay interest for that part? Isn't it a bad record/delinquency? Wondering~

Re: Best utilization ratio for faster auto CLI?

Stralem — Fri, 21 Jun 2013 07:08:58 GMT

He has to pay interest, but that's not necessarily a bad thing. After all, floating balances are what credit cards are for; charge cards are where paying off the full balance each month is a must.

Re: Best utilization ratio for faster auto CLI?

Anonymous — Fri, 21 Jun 2013 12:28:21 GMT

I think the best way to show that a credit limit increase is needed, is to charge the card close to the limit and pay in full. Rinse and repeat. I always let about 10-20% report on my freedom.

If an auto increase doesn't occur, take the HP. The analyst will take into consideration the amount you spend and pay every month.

EDIT: Utilization is short term. Your score will fluctuate depending on the amount your statements report. Don't worry about it. If you need to use your credit, let only 1 card report 1-9% and you'll be good.

Re: Best utilization ratio for faster auto CLI?

CEOriginal — Fri, 21 Jun 2013 14:27:06 GMT

@vwgrrc wrote:
@CEOriginal wrote:
Before I knew any better, I would pay $50 each month on my Cap1 card. It started at $300 and stayed there for a year. I didn't know anything about auto CLI.. I would just charge up to about $250, then pay $50 each month until it got down to about $100.. then charge it back up.

Apparently Cap1 liked that, because I got an auto CLI up to $1,800 (the highest I've seem from this site), which coincidentally led me to myFico because I wanted to learn more.

The point I'm trying to make is that I don't think it's an exact science. Each lender is different. Each card is different. Each person is different. However, I would think that if you PIF, Chase wouldn't see activity post. So, if I were a betting man, I'd put my money on option 2.
You charged 250 on you card but pay only 50 each month. That means you carry the balance thru due date? Don't you have to pay interest for that part? Isn't it a bad record/delinquency? Wondering~

No it's not a deregatory mark if you carry a balance, just so long that you make at least your minimum balance payment by the due date.

Of course, this method is not recommended because you do pay interest. But I was paying about $1.20 in interest every month, and in hindsight, that helped me get a $1,800 CL. So it was worth it... TO ME. My main point is that everyone's situation is different. Over the year I paid Cap1 about $15 in interest, and they gave me a $1,500 CLI. Of course, YMMV. That's just my personal experience with auto CLI's.

Re: Best utilization ratio for faster auto CLI?

navigatethis12 — Fri, 21 Jun 2013 14:30:56 GMT

Chase is very random with automated increases. It very rarely happens and when it does it is usually for a very small amount. I got one for $300 back in Januray, but some is better than none. They do like to see usuage, but do not lke new accounts, so just don't open a lot of cards. You don't have to let the balance report to show that you need more credit; I always pay before the statement closes and have not had a problem.

Re: Best utilization ratio for faster auto CLI?

GatorGuy — Fri, 21 Jun 2013 14:34:35 GMT

There is no formula with Chase. I used my card maybe $200 a month and PIF and they gave me an auto increase of $5k.

Re: Best utilization ratio for faster auto CLI?

navigatethis12 — Fri, 21 Jun 2013 14:39:56 GMT

@GatorGuy wrote:
There is no formula with Chase. I used my card maybe $200 a month and PIF and they gave me an auto increase of $5k.

You're definitely one of the lucky ones. Some people have had their card for years and never received anything.

Re: Best utilization ratio for faster auto CLI?

vwgrrc — Fri, 21 Jun 2013 16:19:23 GMT

Thank you all.

I knew someone with a very low CL freedom got auto CLI after 6 months. I assumed he has very "heavily usage" there lol....

Re: Best utilization ratio for faster auto CLI?

red259 — Fri, 21 Jun 2013 21:35:14 GMT

@GatorGuy wrote:
There is no formula with Chase. I used my card maybe $200 a month and PIF and they gave me an auto increase of $5k.

What was the prior CL on the card and what was the CLs on your other cards? Maybe they were trying to match another card you had to get you to spend more on theirs?

Re: Best utilization ratio for faster auto CLI?

GatorGuy — Fri, 21 Jun 2013 22:10:49 GMT

@red259 wrote:
@GatorGuy wrote:
There is no formula with Chase. I used my card maybe $200 a month and PIF and they gave me an auto increase of $5k.
What was the prior CL on the card and what was the CLs on your other cards? Maybe they were trying to match another card you had to get you to spend more on theirs?

My prior limit was $10k. My highest limit was with Capital One at $25k. So that might have been their goal to get me to switch over to them.

Re: Best utilization ratio for faster auto CLI?

armbenderc — Fri, 21 Jun 2013 22:16:37 GMT

@vwgrrc wrote:
Hi guys,

I want my Chase Freedom get a lucky auto CLI after 6 months as many ppl got for theirs. I was confused by the proper approach described by different sites. Here're 2 common opinions:

1. Use the card heavily (60%+) and always pay it down to 10% BEFORE closing date.
2. Use the card heavily (60%+) and pay if down to 10% AFTER closing date for earlier months. Then pay it down to 10% BEFORE closing date for the 6th month.

So which one is correct? I know 30%+ should be no good for my credit score. But is this talking about long term or short term? I don't care if it only has short term impact...
Is that a good way to show my bank that I need more credit by showing high balance on statement?
More tricks on getting auto CLI plz?

Thanks. Any advice would help!

I kept my overall util at 1-9% and reporting on one card only. Makes sure that on that one card it is not high or almost maxed out. In my case it is at 8% on the card that is reporting and overall is 1%.

Re: Best utilization ratio for faster auto CLI?

pats23 — Fri, 21 Jun 2013 22:32:16 GMT

My experience with my chase freedom was auto CLI after 6month from 3k to 3.5k. I used the card heavily prob 10k in that time span including running the balance up to maxed out think I even let it carry over through a cut date one month cuz 0%apr promo but always PIF and this is just my theory I think companies like lots of swipes not just use a card heavily by big purchases etc. but I use my freedom for everything even if its a dollar I can never get my balance to zero cuz always using it

Re: Best utilization ratio for faster auto CLI?

red259 — Fri, 21 Jun 2013 22:40:16 GMT

@pats23 wrote:
My experience with my chase freedom was auto CLI after 6month from 3k to 3.5k. I used the card heavily prob 10k in that time span including running the balance up to maxed out think I even let it carry over through a cut date one month cuz 0%apr promo but always PIF and this is just my theory I think companies like lots of swipes not just use a card heavily by big purchases etc. but I use my freedom for everything even if its a dollar I can never get my balance to zero cuz always using it

What my dream would be is for my freedom to have an auto CLI from 3k to 5k within six months. It just doesn't feel like it would be likely to happen, but I can still dream!

Re: Best utilization ratio for faster auto CLI?

vwgrrc — Sat, 22 Jun 2013 06:22:28 GMT

@pats23 wrote:
My experience with my chase freedom was auto CLI after 6month from 3k to 3.5k. I used the card heavily prob 10k in that time span including running the balance up to maxed out think I even let it carry over through a cut date one month cuz 0%apr promo but always PIF and this is just my theory I think companies like lots of swipes not just use a card heavily by big purchases etc. but I use my freedom for everything even if its a dollar I can never get my balance to zero cuz always using it

This sounds like the common case.

When you say PIF, do you mean PIF before cut date? If not, what kinda of balance did you left on statement?

Re: Best utilization ratio for faster auto CLI?

pats23 — Sat, 22 Jun 2013 09:25:47 GMT

Usually before the cut date but I specifically remember in my case that I carried a balance of 95% util for one cut date during my 6 month. It was not intentional but I was not worried cuz it was 0%apr. it was paid paid in full a short time after. And still got auto CLI

Re: Best utilization ratio for faster auto CLI?

vwgrrc — Sat, 22 Jun 2013 21:28:54 GMT

@pats23 wrote:
Usually before the cut date but I specifically remember in my case that I carried a balance of 95% util for one cut date during my 6 month. It was not intentional but I was not worried cuz it was 0%apr. it was paid paid in full a short time after. And still got auto CLI

Thank you!

Even it was not 0 APR, you still wont be charged for interest if you carry that balance thru cut date as long as you pay before due date.