topic Re: Credit Utilization for Limit Increase in Credit Cards

Credit Utilization for Limit Increase

bigdogg2834 — Sat, 07 Jun 2014 19:14:09 GMT

I currently have 4 cards with limits ranging from $2500-$3000. I went through some difficult times not long ago, which forced me to have to use up quite a bit of my credit. My 4 cards are all sitting just shy of maxed out status (89% utilization). I am currently working on getting them paid down to a more reasonable percentage. My credit scores are not too shabby considering the high utilization. I have no negatives and my 3 scores average out to 690 currently.

I would like to continue to work on my scores while I am paying down my cards and would like to increase my limits on my cards. I know no one can give an exact number, but what would be a rough estimate that I could shoot for as far as a credit utilization percentage that would most likely net me a successful limit increase request?

Re: Credit Utilization for Limit Increase

EW800 — Sat, 07 Jun 2014 19:21:01 GMT

I am not sure about what type of CL increases you might get, however in my experience if your scores are sititng at the 690 range with 89% UTIL, I think you will be in VERY good shape when you get UTIL way down! I was sititng up near that range as well, with a foreclosure to boot, and saw dramatic score increases when I brought my UTIL under 10% or so (currently at about 3%).

Re: Credit Utilization for Limit Increase

gdale6 — Sat, 07 Jun 2014 19:29:46 GMT

Realistically I would not attempt a CLI till utilization is below 40%.

Re: Credit Utilization for Limit Increase

One7 — Sat, 07 Jun 2014 21:25:20 GMT

@EW800 wrote:
I am not sure about what type of CL increases you might get, however in my experience if your scores are sititng at the 690 range with 89% UTIL, I think you will be in VERY good shape when you get UTIL way down! I was sititng up near that range as well, with a foreclosure to boot, and saw dramatic score increases when I brought my UTIL under 10% or so (currently at about 3%).

Re: Credit Utilization for Limit Increase

CreditJunkie917 — Sun, 08 Jun 2014 02:37:40 GMT

Re: Credit Utilization for Limit Increase

bigdogg2834 — Sun, 08 Jun 2014 13:12:32 GMT

Thank you for the replies. Yes, before my period of struggle, my utilization was very low (around 10%) and my scores were around 745. So I look forward to what is coming my way once I can get them back down to where they once were. Looks like my main focus will be paying down my debt and I will attempt a CLI request when I get closer to 40%. I may even get an auto CLI between now and then. Who knows?

Re: Credit Utilization for Limit Increase

takeshi74 — Sun, 08 Jun 2014 17:27:26 GMT

@bigdogg2834 wrote:
I know no one can give an exact number, but what would be a rough estimate that I could shoot for as far as a credit utilization percentage that would most likely net me a successful limit increase request?

All we can say is the lower the better. That's why the general recommendation of only letting 1 balance report at 10% or less exists. At 89% you'll have a long way to go but you'll want to get it down as quickly as possible to avoid AA anyway. Keep in mind that 30% is the generally recommended max.