topic Re: Anyone Refuses to Take a HP for a CLI? in Credit Cards

Anyone Refuses to Take a HP for a CLI?

Anonymous — Tue, 08 Oct 2013 07:24:14 GMT

I have had Discover IT ($1500 - $5000) for 2 years - and Barclays ($1000- $6200) for 1.5 years. Both of my increases with Discover came with HPs. I have had a total of 4 increases from Barclays - 2 that I requested before I even got the card - and 2 auto increases. I recently was approved for a Citi Simplicity $5,000 and a State Employees CU Visa $5,000.

I have no idea how Citi and the CU will be with CLs - but I am feeling that I am no longer willing to take HPs for CLIs. It helps that I have an extra $10,000 in CLs to help me manage purchases - and hell - there should be no reason that I NEED more of a CL to do so. In the past 6 months I have called Disc. for a CLI, and each time they told me that it required a HP, so I declined to proceed with the application. Now, I just ask if there are any other offers available like an APR reduction - which is what I received - temporarily @ 3.99% - when I called last month.

Back in the 90's - before I knew there was such a thing as the option to request a CLI - I just went about using my CCs - and those increases came regularly - and I was neither here nor there about the fact, and had no idea what these limits meant for my credit history. I am going back to that way of doing things. If nothing else, I see that Barclays is pretty consistent with the CLI - and that should be enough to stroke my credit ego.

Re: Anyone Refuses to Take a HP for a CLI?

Networth — Tue, 08 Oct 2013 07:29:18 GMT

The only time I would ever do a HP for a CLI was if it was for a large increase atleast 5K+ and a card I used very often/daily. I am very stingy with my HP's.

Re: Anyone Refuses to Take a HP for a CLI?

CreditScholar — Tue, 08 Oct 2013 07:24:09 GMT

I have no issues with taking a HP for a CLI.

If it's customer-initiated, it should be a HP. Auto-CLIs can be SP since you weren't the one who asked for it.

Re: Anyone Refuses to Take a HP for a CLI?

FinStar — Tue, 08 Oct 2013 07:32:04 GMT

@CreditScholar wrote:
I have no issues with taking a HP for a CLI.

If it's customer-initiated, it should be a HP. Auto-CLIs can be SP since you weren't the one who asked for it.

Just part of doing business. There are folks that may get accustomed with the fact that some lenders have somewhat "laxed" CLI/AR policies and can result in SP in some customer-initiated situations, yet in turn expect a SP for everything. Just doesn't work that way for all lenders.

Re: Anyone Refuses to Take a HP for a CLI?

Anonymous — Tue, 08 Oct 2013 07:39:52 GMT

I hear ya - Might as well wait it out - and let the cards work for you as opposed to asking for something you may or may not get - knowing that you WILL get dinged for it - and it will report for 2 years!

@Networth wrote:
The only time I would ever do a HP for a CLI was if it was for a large increase atleast 5K+ and a card I used very often/daily. I am very stingy with my HP's.

Re: Anyone Refuses to Take a HP for a CLI?

Anonymous — Tue, 08 Oct 2013 12:26:04 GMT

I think it really depends on your "needs" including emotional ones! In most cases, a CLI is of very little "real" value If you have a card with a very low limit that you really need to use and are paying many times a month, then that is a case where there is value but usually there is no tangible benefit (decreased utilization doesn't really count, that's just a score, you can often reduce it anyway, and unless you are applying for more credit, the score doesn't matter). But if you like posting here "Just got a 10K CLI on my card from MeanBank", that has a non-financial value for you.

Whereas is you save your HPs for a card with a sign up bonus, or rewards you can use, that does have a measurable value. So from a strictly financial viewpoint, if HPs are in short supply, it makes more sense to save HPs for new apps.

Re: Anyone Refuses to Take a HP for a CLI?

takeshi74 — Tue, 08 Oct 2013 12:43:45 GMT

@Anonymous wrote:
Anyone Refuses to Take a HP for a CLI?

As with any other subjective matter, some do, some do not. Everyone isn't in the same exact situation and our preferences aren't all identical. I'm not actively seeking CLI's for HP's on everything but I wouldn't hesitate if a desired CLI involved a HP.

@Anonymous wrote:
It helps that I have an extra $10,000 in CLs to help me manage purchases - and hell - there should be no reason that I NEED more of a CL to do so.

Your call. I find higher CL's make it easier to keep utilization low. I don't NEED the CL's that I have but my regular spend ends up putting me at about 10% utilization or less without having to worry over paying prior to statement close to micromanage utilization.

@Anonymous wrote:
If you have a card with a very low limit that you really need to use and are paying many times a month, then that is a case where there is value but usually there is no tangible benefit (decreased utilization doesn't really count, that's just a score, you can often reduce it anyway, and unless you are applying for more credit, the score doesn't matter).

Again, subjective. Be careful using "you" instead of "I". As you said, it really depends on one's needs.

Re: Anyone Refuses to Take a HP for a CLI?

navigatethis12 — Tue, 08 Oct 2013 12:41:59 GMT

@Anonymous wrote:
I think it really depends on your "needs" including emotional ones! In most cases, a CLI is of very little "real" value If you have a card with a very low limit that you really need to use and are paying many times a month, then that is a case where there is value but usually there is no tangible benefit (decreased utilization doesn't really count, that's just a score, you can often reduce it anyway, and unless you are applying for more credit, the score doesn't matter). But if you like posting here "Just got a 10K CLI on my card from MeanBank", that has a non-financial value for you.

Whereas is you save your HPs for a card with a sign up bonus, or rewards you can use, that does have a measurable value. So from a strictly financial viewpoint, if HPs are in short supply, it makes more sense to save HPs for new apps.

I admit that the increases I've asked for I really didn't need; I was just doing it to do it.I will allow a hard inquiry for a card that I use often and would like a higher limit on so it can be used for business use if I choose to do so. I will not allow a hard inquiry if it's a card I don't use or care about. Discover offered 500 more online and said a hard may yield more but I declined because I don't use it. I will take a hard with Chase any day because I use their cards all of the time and the increased limit may come in handy some day. If someone really needs it I don't see why the issue of the hard inquiry.

I'm not sure when hard inquiries stop mattering, but they do. Citi is known to turn down people with four or five inquiries; I had 26 on Experian and they didn't care, with 14 being less tha one year old. One inquiry for one increase shouldn't stop you from getting any cards.

Re: Anyone Refuses to Take a HP for a CLI?

youngandcreditwrthy — Tue, 08 Oct 2013 13:07:16 GMT

99.99% I NEVER take a HP for a cli.
In fact, the only time I have taken a HP for a cli was recently: BOA cli'ed me from $3500 to $10,000- that was worth it for me considering I got 16 mos 0% interest lol

Re: Anyone Refuses to Take a HP for a CLI?

phillyguy12 — Tue, 08 Oct 2013 13:58:52 GMT

i think it really depends on where the person is at and how much the cli is for and the person's income. me i am still in rebuilding mode, and very inquiry sensitive so i will not grant a hp for a cli, while i would like higher limits on most of my cards simply to not have to worry about ult. i am at a point where i don't need larger lines, yea its a pain pushing multiple payments but doing so does force me to question my spending. if i cant pay it off before statement cuts or shortly after do i really need it? prob not. But at the same time i feel card compaines are doing themselves a disservice by not doing auto cli's as my higher limit cards see more everyday spend than those w/ lower limits, the more i use the card the more they make in swipe fees, i rarely pay interest now because i pif in most cases, but if i had higher limits i would be more inclined to carry some balance. if you have good credit and large lines already you prob aren't apping, so you could be more free w/ hp's. i dont know how much income level really plays into the line amts but one would have to assume it has to come into play to some extent.

Re: Anyone Refuses to Take a HP for a CLI?

ficoguy75 — Tue, 08 Oct 2013 15:04:17 GMT

@youngandcreditwrthy

That's awesome! If you don't mind me asking, how did you get the bonus offer from a CLI?

Re: Anyone Refuses to Take a HP for a CLI?

Gunnar419 — Tue, 08 Oct 2013 15:52:27 GMT

Changingmantra wrote:

Back in the 90's - before I knew there was such a thing as the option to request a CLI - I just went about using my CCs - and those increases came regularly - and I was neither here nor there about the fact, and had no idea what these limits meant for my credit history. I am going back to that way of doing things. If nothing else, I see that Barclays is pretty consistent with the CLI - and that should be enough to stroke my credit ego.

I'm with you there.

A company can do whatever it likes, of course. But if cc vendors don't give me automatic or SP CLIs as a reward for my long-term loyalty and good credit practices, I tend to lose interest in them. Just as they can set an HP only CLI policy, I can set a policy of dealing only with their more liberal competitors.

The exception might be if I had a low CLI card that I wanted to be my main go to card. Then I'd take an HP for a decent enough increase. Otherwise as you say CLIs are often about "credit ego" more than need, and therefore not worth the HP hit.

Re: Anyone Refuses to Take a HP for a CLI?

Anonymous — Tue, 08 Oct 2013 16:30:10 GMT

@FinStar wrote:
@CreditScholar wrote:
I have no issues with taking a HP for a CLI.

If it's customer-initiated, it should be a HP. Auto-CLIs can be SP since you weren't the one who asked for it.
+1

Just part of doing business. There are folks that may get accustomed with the fact that some lenders have somewhat "laxed" CLI/AR policies and can result in SP in some customer-initiated situations, yet in turn expect a SP for everything. Just doesn't work that way for all lenders.

+2.

At the end of the day, it's really just ONE inquiry.

It's not going to tank your score, and it's not going to result in adverse action just because you had 1 more inquiry.

It's not going to make a difference whether someone went from 4 to 5 inquiries. Even for people with lots of inquiries, such as 20+ inquiries, it's not going to make any difference by adding 1 more to it.

I have no issues with taking HP for CLIs on cards that I use regularly.

For the other cards, I'll ask for a SP CLI if possible. If not, I'll just leave it as is and try to get a CLI on the "more important" cards.

A lot of people try to get SP CLIs to pad their utilization but at the end of the day, lenders do look at the dollar amount of debt relative to income as well.

Re: Anyone Refuses to Take a HP for a CLI?

parakleet — Tue, 08 Oct 2013 16:43:34 GMT

@Anonymous wrote:
@FinStar wrote:
@CreditScholar wrote:
I have no issues with taking a HP for a CLI.

If it's customer-initiated, it should be a HP. Auto-CLIs can be SP since you weren't the one who asked for it.
+1

Just part of doing business. There are folks that may get accustomed with the fact that some lenders have somewhat "laxed" CLI/AR policies and can result in SP in some customer-initiated situations, yet in turn expect a SP for everything. Just doesn't work that way for all lenders.
+2.
At the end of the day, it's really just ONE inquiry.
It's not going to tank your score, and it's not going to result in adverse action just because you had 1 more inquiry.
It's not going to make a difference whether someone went from 4 to 5 inquiries. Even for people with lots of inquiries, such as 20+ inquiries, it's not going to make any difference by adding 1 more to it.

I have no issues with taking HP for CLIs on cards that I use regularly.
For the other cards, I'll ask for a SP CLI if possible. If not, I'll just leave it as is and try to get a CLI on the "more important" cards.

A lot of people try to get SP CLIs to pad their utilization but at the end of the day, lenders do look at the dollar amount of debt relative to income as well.

+3 You can refuse to take a HP all day long. But no one is "entitled" to SP CLIs. Don't get me wrong, I welcome with open arms SP CLIs. But if I truly want a CLI, I'll take the HP. It's really no big.

Re: Anyone Refuses to Take a HP for a CLI?

09Lexie — Tue, 08 Oct 2013 18:02:47 GMT

For my barely used cc's that are circling the bowl, no. Why ask for a HP on a CL you have no intention of using. The cards most heavily used -yes.

Interesting we all enjoy the 3x CLI on Amex as a SP; would we be as happy if they changed their policy to HPs?

Re: Anyone Refuses to Take a HP for a CLI?

Anonymous — Tue, 08 Oct 2013 18:00:33 GMT

For me, it all depends upon the circumstances. As a rule I tend to be stingy with my HPs. But if it's a card that I really want to grow, then I might be willing to take the HP.

A good example is my DH's Care Credit card (I manage his accounts for him, with his full knowledge and permission). He first got it when his scores were in the toilet, so his initial CL was only $500. We used it for small expenses with our vet, but we needed to grow it if it was going to be useful in an emergency. After a while I took a HP and got it up to $2100, and then a few months ago I asked for a CLI and risked a HP (they didn't state in advance it iwas going to be, and it turns out it was) and the result was that it was doubled to $4200. It's now a much more usable card and, if anything unexpected should happen with out dogs, we have a means of payment to our vet that would allow us to take advantage of the 0% interest structure.

A HP for the sake of an increase that I don't really need -- that's a different matter. I believe in looking at your situation and what you're trying to accomplish and then doing what makes sense.

Re: Anyone Refuses to Take a HP for a CLI?

youngandcreditwrthy — Tue, 08 Oct 2013 18:21:41 GMT

I called to ask about the Balance Transfer terms and she offered me a month extension w 0% to do it "only on this phone call"

Re: Anyone Refuses to Take a HP for a CLI?

phillyguy12 — Tue, 08 Oct 2013 19:03:23 GMT

@09Lexie wrote:
For my barely used cc's that are circling the bowl, no. Why ask for a HP on a CL you have no intention of using. The cards most heavily used -yes.

Interesting we all enjoy the 3x CLI on Amex as a SP; would we be as happy if they changed their policy to HPs?

a 3x i can see there is a risk there and frankly im still suprised amex is this generous w/ a sp, it gives me pause when thinking i could potentailly have a 9k card in january off hand i think its tech right around xmas i could request it but w/ holiday delays i might just put off till the new yr,

Re: Anyone Refuses to Take a HP for a CLI?

youngandcreditwrthy — Tue, 08 Oct 2013 19:57:28 GMT

As long as I could get large clis and continued to find Amex cards useful(my BCE and Delta)
I certainly wouls take a HP for a 3xcli!

Re: Anyone Refuses to Take a HP for a CLI?

missjae — Tue, 08 Oct 2013 20:33:51 GMT

I'll take an HP if I really want the increase. It's that simple.

I recently asked Discover for an increase. I wasn't going to do it if it resulted in an HP, but changed my mind. Why not?