topic Re: How much CLI to ask? in Credit Cards

How much CLI to ask?

Anonymous — Fri, 14 Nov 2014 04:28:28 GMT

I know there's no set rules and each UW is different, but what general percentage of our income should we request as a CLI?

Re: How much CLI to ask?

SunriseEarth — Fri, 14 Nov 2014 08:01:46 GMT

@Anonymous wrote:
I know there's no set rules and each UW is different, but what general percentage of our income should we request as a CLI?

The only example that comes to mind in tying a CLI request to income is AMEX. Some have reported that customer-initiated CLIs are limited to ~40% of your income. However, there's also many examples of CLs that are above and below that percentage with AMEX.

Aside from that, I honestly think it varies too much with each product to give a good answer, let alone each person's credit needs and profile. I think it may be better to tie the amount of your spend to what your ideal CL would be for a certain CC. For example, if I have a $500 monthly dining spend, then a $5K card would work well for me, as I could keep my UTIL optimal without much effort.

Re: How much CLI to ask?

takeshi74 — Fri, 14 Nov 2014 13:33:42 GMT

@Anonymous wrote:
I know there's no set rules and each UW is different, but what general percentage of our income should we request as a CLI?

There's no such thing and the first part of your covers part of the reason why. The other part is the CLI's aren't just based on income but one's credit as well. Request what you think is reasonable for your situation. The creditor can counteroffer if they find you eligible for a CLI but don't agree that you qualify for what you requested.

If you want to be specific about a creditor then we can try to use aggregated anecdotal evidence to come up with guidelines like the 40% ceiling for AmEx. Chase was more like 70% for me.

Re: How much CLI to ask?

elegia — Fri, 14 Nov 2014 14:33:40 GMT

@SunriseEarth wrote:
@Anonymous wrote:
I know there's no set rules and each UW is different, but what general percentage of our income should we request as a CLI?
The only example that comes to mind in tying a CLI request to income is AMEX. Some have reported that customer-initiated CLIs are limited to ~40% of your income. However, there's also many examples of CLs that are above and below that percentage with AMEX.

Aside from that, I honestly think it varies too much with each product to give a good answer, let alone each person's credit needs and profile. I think it may be better to tie the amount of your spend to what your ideal CL would be for a certain CC. For example, if I have a $500 monthly dining spend, then a $5K card would work well for me, as I could keep my UTIL optimal without much effort.

Aha! That explains my somewhat odd credit limit with Amex - I requested $15,000 and they countered with $14,400. Brilliant!

Re: How much CLI to ask?

Creditaddict — Fri, 14 Nov 2014 14:35:17 GMT

I use the general rule of $25k but depending where you are at now and which creditor $25k maybe not be enough!

Re: How much CLI to ask?

Anonymous — Fri, 14 Nov 2014 14:37:05 GMT

@Creditaddict wrote:
I use the general rule of $25k but depending where you are at now and which creditor $25k maybe not be enough!

The CA Rule? "25K or bust."

Re: How much CLI to ask?

FinStar — Fri, 14 Nov 2014 14:38:34 GMT

@Anonymous wrote:
@Creditaddict wrote:
I use the general rule of $25k but depending where you are at now and which creditor $25k maybe not be enough!

The CA Rule? "25K or bust."

Exactly