topic Re: When to ask for CLI? in Credit Cards

When to ask for CLI?

Jacque383 — Sun, 26 Aug 2007 01:38:43 GMT

Hi All,

I just got 3 new credit cards: CCU, Hooters and US Airways. The cards are in the mail I'm told. Those 3 credit card aps caused my score to drop by a huge amount - over 20 points for some reason...I'm hoping that goes back up again once the cards show on my credit report.

I'm curious though when do you all ask for CLI's?

Do you wait awhile since this pulls your credit again? And wouldn't that constitute a denial since my score went down with the first pull?

Thanks,

Jacque

Re: When to ask for CLI?

Anonymous — Sun, 26 Aug 2007 01:51:46 GMT

Well a lot of CCCs will give CLI on activation, but the 3 you mentioned aren't really known to do so. I'd suggest waiting for 3-6 months of good payment history.

Re: When to ask for CLI?

Jacque383 — Sun, 26 Aug 2007 02:06:51 GMT

Okay, thanks.

Re: When to ask for CLI?

RobertEG — Sun, 26 Aug 2007 02:17:33 GMT

New cards can cost you up to 10pts each for the hard pull inquiry, which stays, with some reduction, as a neg for one year. Yes, you get in increase in CL, and it may also improve your credit mix, but these increases are usually much less than the hit for the inquiries needed to get the new cards. Additionally, if you run a balance on these new cards that exceeds 10% or more, that will also hurt. On the whole, I dont see getting new cards as an effective short term way to improve credit score.

Re: When to ask for CLI?

Anonymous — Sun, 26 Aug 2007 02:34:18 GMT

@RobertEG wrote:
New cards can cost you up to 10pts each for the hard pull inquiry, which stays, with some reduction, as a neg for one year. Yes, you get in increase in CL, and it may also improve your credit mix, but these increases are usually much less than the hit for the inquiries needed to get the new cards. Additionally, if you run a balance on these new cards that exceeds 10% or more, that will also hurt. On the whole, I dont see getting new cards as an effective short term way to improve credit score.

I don't really understand the relevance of anything you're saying. OP wasn't asking about the effectiveness of improving credit scores with new cards. Bottom line is that adding new accounts and taking a possible hit on the FICO is a necessary evil for credit building.

As for your utilization comment, that doesn't just apply to new accounts, that also applies to older accounts as well.

Your comment "but these increases are usually much less than the hit for the inquiries needed to get the new cards." has me completely baffled. CLIs can lead to lower utilization which can lead to a higher FICO. Also a hit isn't always necessary for a CLI - assuming you're talking about another hard inquiry. I've gotten 6 CLIs in the last 3 months and 1 hard inq.

Message Edited by db23 on 08-25-2007 10:34 PM

Re: When to ask for CLI?

Anonymous — Wed, 05 Sep 2007 23:04:56 GMT

RobertEG wrote some stuff

We're havin' a bad luck streak with our Bobs.

Re: When to ask for CLI?

Anonymous — Wed, 05 Sep 2007 23:10:29 GMT

Okay Jacque when you open new accounts several things can happen first of all you just reaged the average age of your credit file with three cards all at once. You say they aren't reporting, are you sure? The max an inq should lower your score is 5 to 6 points.

As far as CLIs at activation, you can ask. The thing is not to allow another hard pull of your report. If they say the only way is with a hard, politely decline. Keep your utilization low and you should recover rather quickly

Re: When to ask for CLI?

Anonymous — Wed, 05 Sep 2007 23:22:24 GMT

does amex do a hard pull when you hit the luv button? is there a set time to wait until you should ask? i would have asked about cli and converting to blue had i found this forum a couple of weeks ealier. i know, i know i'm just icthing for one of thier famous fr's. i didn't fudge anything when i applied so i'm not too concerned.

Re: When to ask for CLI?

Anonymous — Wed, 05 Sep 2007 23:26:56 GMT

dnm45227 wrote:

does amex do a hard pull when you hit the luv button? is there a set time to wait until you should ask? i would have asked about cli and converting to blue had i found this forum a couple of weeks ealier. i know, i know i'm just icthing for one of thier famous fr's. i didn't fudge anything when i applied so i'm not too concerned.

From what I understand, Amex's LUV button is notoriously soft. I dont know about tha card got scared off, dont want to be found looking for LUV in all the wrong places so I went PENFED instead. Even though I went through their F/r upon applying

Message Edited by Brammy on 09-05-2007 07:26 PM

Re: When to ask for CLI?

Anonymous — Wed, 05 Sep 2007 23:36:19 GMT

well good, bad or worst i asked got this;

Your request for a line of credit increase has been submitted.
You will receive a written response within 7-10 days.

anyone out there care to break out thier crystal ball?

Re: When to ask for CLI?

Anonymous — Wed, 05 Sep 2007 23:38:53 GMT

dnm45227 questions

does amex do a hard pull when you hit the luv button?
Soft

is there a set time to wait until you should ask?
Wait 30 days before asking again

i would have asked about cli and converting to blue had i found this forum a couple of weeks ealier.
No time like the present, but what are you converting from?

i know, i know i'm just icthing for one of thier famous fr's. i didn't fudge anything when i applied so i'm not too concerned.
Honesty on income and staying at around 1/3 one's annual income in total AMEX CLs are two ways to help avoid FR. Not a sure thing, but it's something you can do.

Re: When to ask for CLI?

Anonymous — Wed, 05 Sep 2007 23:51:07 GMT

sorry, platinum delta skymiles. shortly after i got the skymiles i felt like i had a pair and took a hard for the blue (again before i found this forum, ignorant me), for which the decline cured that feeling.

i guess it will be a turn down. just short of 30 days on the card. just have to file the info away for future date.

Re: When to ask for CLI?

Anonymous — Thu, 06 Sep 2007 00:14:52 GMT

dnm45227 wrote:
Your request for a line of credit increase has been submitted.
You will receive a written response within 7-10 days.
anyone out there care to break out thier crystal ball?

Usually that means a denial, but wait it out and do not despair. A lot can happen in a short time. DW keeps requesting a CLI each month. Recently paid off.

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=1980

I would wait out the CLI request, and whatever the answer wait 30 days then call up and ask for a conversion to Blue.

Re: When to ask for CLI?

Anonymous — Thu, 06 Sep 2007 00:16:16 GMT

dnm45227 wrote:
shortly after i got the skymiles i felt like i had a pair and took a hard for the blue (again before i found this forum, ignorant me), for which the decline cured that feeling.

Try recon on your Blue denial.

Re: When to ask for CLI?

Anonymous — Thu, 06 Sep 2007 00:24:55 GMT

i don't normally see the mail. i don't think we have the turn down letter. would it still be on file if i called in?

Re: When to ask for CLI?

SpecFile — Thu, 06 Sep 2007 00:25:30 GMT

Noah,

If I have had my AMEX Gold DSM card for about three weeks now, is it possible to convert to Blue Cash without another hard hit?

Thanks

Re: When to ask for CLI?

Anonymous — Thu, 06 Sep 2007 00:53:50 GMT

dnm45227 wrote:
i don't normally see the mail. i don't think we have the turn down letter. would it still be on file if i called in?

What am I thinking. You can check the status of your application online.

https://www201.americanexpress.com/eaol/statuscheck/welcome.jsp?us_nu=dd

Re: When to ask for CLI?

Anonymous — Thu, 06 Sep 2007 00:54:34 GMT

SpecFile wrote:
If I have had my AMEX Gold DSM card for about three weeks now, is it possible to convert to Blue Cash without another hard hit?

What's the date of the INQ when you applied?

Re: When to ask for CLI?

SpecFile — Thu, 06 Sep 2007 00:57:21 GMT

Aug. 7th

Re: When to ask for CLI?

Anonymous — Thu, 06 Sep 2007 01:02:23 GMT

SpecFile wrote:
Aug. 7th

It's close to the wire, but if you apply for another AMEX within 30 days, they'll likely go on the CR they pulled on Aug 7th.

I'd take a chance and apply online now for Blue.