topic Re: To CLI or not / Utilization question in Credit Cards

To CLI or not / Utilization question

Anonymous — Mon, 30 Sep 2013 18:42:03 GMT

So I was wondering if it would be a good idea to CLI my Amex card after 61 days. Currently I have $10,500. The reason I'm asking is because in the future I would like to apply for the Chase Sapphire Preferred and the Chase Freedom. My income is only around $60,000. So I was wondering if Chase would deny me for having to much credit vs income, since I have other cards too.

Also, I was looking at Credit Karma today. I know it's a Fako score. But it seems my score dropped by 20 points for having my utilization below 1%. I only had a balance of $135 report. They calculated it as 0%. So is it a good idea to try to keep it at 1% for a better score?

Thank you.

Re: To CLI or not / Utilization question

Revelate — Mon, 30 Sep 2013 18:51:49 GMT

@Anonymous wrote:
So I was wondering if it would be a good idea to CLI my Amex card after 61 days. Currently I have $10,500. The reason I'm asking is because in the future I would like to apply for the Chase Sapphire Preferred and the Chase Freedom. My income is only around $60,000. So I was wondering if Chase would deny me for having to much credit vs income, since I have other cards too.

Also, I was looking at Credit Karma today. I know it's a Fako score. But it seems my score dropped by 20 points for having my utilization below 1%. I only had a balance of $135 report. They calculated it as 0%. So is it a good idea to try to keep it at 1% for a better score?

Thank you.

Generally even with FICO we've found that an aggregate utilization of 0% is not where you want to be. I don't know where the rounding is on FICO's algorithm but it's worth letting more report if you're trying to maximize that in a given month. I typically target the 3-5% range which gives me enough cushion if I have an awkard purchase near a statement date when I'm trying to ruthlessly maximize my report.

Regarding the CLI; that's actually an very interesting question. If it were me, and this is just my opinion as it may not really matter, I think I'd wait on the CLI till after I obtained the CSP as your Amex tradeilne is more than sweet enough to have Chase try to entice you away from a marketing perspective with a CSP. Freedom you can probably qualify for outright without knowing anything else other than that one tradeline.

You can always ask for the Amex CLI later after obtaining the Chase cards.

Edit: I don't think you'll have much trouble with CSP underwriting looking at your signature line. You are gold plated credit wise with solid history and good income .

Re: To CLI or not / Utilization question

lg8302ch — Mon, 30 Sep 2013 19:09:24 GMT

Funny I was asking myself the exact same question and finally decided to go for it but did not expect to get the full 25K requested ... I am also on a mission to get CSP in 2014 and in case Chase will have a problem with the CL I figured I can always lower it again with Amex. What worries me more is Discover never allow me a CLI because of the CL (similar income for me)

Re: To CLI or not / Utilization question

09Lexie — Mon, 30 Sep 2013 19:24:23 GMT

@lg8302ch

Discover is an odd bird. There CL and CLI's are all over the place IMO. I just read a thread where they gave an initial CL of $6k with no rev cc history.
Go figure

Re: To CLI or not / Utilization question

sccredit — Mon, 30 Sep 2013 20:33:05 GMT

@09Lexie wrote:
@lg8302ch

Discover is an odd bird. There CL and CLI's are all over the place IMO. I just read a thread where they gave an initial CL of $6k with no rev cc history.
Go figure

They gave me $10k when my highest limit was $1,800.

OP - Looking at your scores I am not sure it would matter a whole lot. As far as credit vs. income no one has actually figured out if there is any kind of rule with Chase

Re: To CLI or not / Utilization question

lg8302ch — Tue, 01 Oct 2013 03:58:24 GMT

@09Lexie wrote:
@lg8302ch

Discover is an odd bird. There CL and CLI's are all over the place IMO. I just read a thread where they gave an initial CL of $6k with no rev cc history.
Go figure

yep.....it almost looks to me that Discover wants to be highest limit card and if they cannot achieve this they make sure to be lowest ???...very funny patterns we see here..LOL

Re: To CLI or not / Utilization question

myjourney — Tue, 01 Oct 2013 04:18:50 GMT

@lg8302ch wrote:
@09Lexie wrote:
@lg8302ch

Discover is an odd bird. There CL and CLI's are all over the place IMO. I just read a thread where they gave an initial CL of $6k with no rev cc history.
Go figure
yep.....it almost looks to me that Discover wants to be highest limit card and if they cannot achieve this they make sure to be lowest ???...very funny patterns we see here..LOL

It's my lowest and at the end of 6 months if no auto luv it will be in the bottom SD

Not the top SD the BOTTOM........used for bubble gum and chips twice a year

Re: To CLI or not / Utilization question

Themanwhocan — Tue, 01 Oct 2013 23:30:26 GMT

@myjourney wrote:
@lg8302ch wrote:
@09Lexie wrote:
@lg8302ch

Discover is an odd bird. There CL and CLI's are all over the place IMO. I just read a thread where they gave an initial CL of $6k with no rev cc history.
Go figure
yep.....it almost looks to me that Discover wants to be highest limit card and if they cannot achieve this they make sure to be lowest ???...very funny patterns we see here..LOL
It's my lowest and at the end of 6 months if no auto luv it will be in the bottom SD
Not the top SD the BOTTOM........used for bubble gum and chips twice a year

Thats why I stuck it to Discover. Think you can stay my lowest limit card, eh? I got a pair of Barclaycard's now that took THAT crown away from you...