topic Re: Securing High Credit line in General Credit Topics

Securing High Credit line

Anonymous — Wed, 18 Apr 2007 06:34:02 GMT

Does any one know what criteria is use to get a high limit credit card, say one that starts at 20K or higher. I have Amex no preset spending limit and have charged up to 40K and paid on time or completely off within 30 days. yet no one will issue a credit card greater than 10K?? I thought once we got the American express getting other creditors to extend higher credit limits would be easier.

Re: Securing High Credit line

Anonymous — Wed, 18 Apr 2007 13:13:15 GMT

In my experience the best bet is to not use them.. strange eh... but every time I have run up a balance then paid it off in full, left the card alone for a few months and bang... a $3-5K raise on the limit comes through. Sorry, I can't explain it other than they are just trying to intice you into more debt and you have proven that you are a good risk by paying them back previously.

Of course you could just ask the card issuers for a high limit?

Message Edited by htc on 04-18-2007 06:13 AM

Re: Securing High Credit line

Anonymous — Wed, 18 Apr 2007 15:21:31 GMT

DLC wrote:
Does any one know what criteria is use to get a high limit credit card, say one that starts at 20K or higher. I have Amex no preset spending limit and have charged up to 40K and paid on time or completely off within 30 days. yet no one will issue a credit card greater than 10K?? I thought once we got the American express getting other creditors to extend higher credit limits would be easier.

With limits like those have you tried the LUV button on your bank's websites? It could be that they ffel you have enough avail creditand the abililty to charge more than you could reasonably pay back with your current income.

Re: Securing High Credit line

Anonymous — Wed, 18 Apr 2007 17:02:22 GMT

@Anonymous wrote:
Does any one know what criteria is use to get a high limit credit card, say one that starts at 20K or higher. I have Amex no preset spending limit and have charged up to 40K and paid on time or completely off within 30 days. yet no one will issue a credit card greater than 10K?? I thought once we got the American express getting other creditors to extend higher credit limits would be easier.

Do you really need a credit limit higher than $10K?

From what I have read, taking credit limits higher than that really doesn't significantly impact your FICO. You get a major boost going from $0 to $5000. Some boost from $5000 to $10000. Beyond that, I'm pretty sure you approach a horizontal asymptote.

You might want to look at securing other kinds of credit. Maybe finance your next car, and pay it off in the first six months so you don't get bit by interest. In the long run that would help your FICO.

Re: Securing High Credit line

Anonymous — Wed, 18 Apr 2007 17:25:45 GMT

"Do you really need a credit limit higher than $10K?

From what I have read, taking credit limits higher than that really doesn't significantly impact your FICO. You get a major boost going from $0 to $5000. Some boost from $5000 to $10000. Beyond that, I'm pretty sure you approach a horizontal asymptote.

You might want to look at securing other kinds of credit. Maybe finance your next car, and pay it off in the first six months so you don't get bit by interest. In the long run that would help your FICO. "

Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.

With regards to getting one - OP mentioned having an amex. Especially with a good history with them, it should be at most trivial to get a high limit card from them. Apply for a blue or a clear, and request those CLI's. Assuming you have a good relationship with them, you won't have any trouble getting something around 25k.

Re: Securing High Credit line

Anonymous — Thu, 26 Apr 2007 23:09:34 GMT

Beware of the American Express Green Card regarding "Credit Limit" and "(High Credit)" terms as used in the FICO score.
AX states their Green card has no pre-set spending limit--which is true. The FICO Credit Limit line is left blank --suggesting that
you have no Credit Limit or preset spending limit. The line directly below this is (High Credit) which I am told is your running 12 month spending
average. So if you spend monthly what established the average in the first place your FICO score will initially lose FICO points. This is
even with a prior near perfect score in the 800+ range. But it gets worse--in one month I spent five times my monthly average ( High Credit)
which was paid off weeks before the AX due date. My next quarterly FICO score dropped 30 points because of this buy.

When I asked American Express why I can not have an actual Credit Limit to preclude a situation as above, I was told NO because
the Green Card is a Charge Card and not a Credit Card. When I then asked AX why the Charge Card was used in credit reporting they had
no answer.
BEWARE!

t

Re: Securing High Credit line

Anonymous — Thu, 26 Apr 2007 23:41:56 GMT

"Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible."

Actually, I don't think the first part of this is always true. A potential lender can be scared off if you have too much available credit. They see it as an opportunity for you to run up big debt in the future.

Re: Securing High Credit line

Anonymous — Fri, 27 Apr 2007 03:57:04 GMT

@Anonymous wrote:
Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.

One any CL over $1000, your utilization should already be negligible. There's no need to ever carry a balance higher than $50 or so to have a bill to pay most months and keep an account active. $50 on a credit limit of $1000 is 5%. To FICO, that's negligible. Increasing to $5000 CL brings your utilization down to 1%. Beyond that, what's the point? No need to gild the lily on utilization there.

Re: Securing High Credit line

Anonymous — Fri, 27 Apr 2007 21:12:08 GMT

@Anonymous wrote:

@Anonymous wrote:
Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.

One any CL over $1000, your utilization should already be negligible. There's no need to ever carry a balance higher than $50 or so to have a bill to pay most months and keep an account active. $50 on a credit limit of $1000 is 5%. To FICO, that's negligible. Increasing to $5000 CL brings your utilization down to 1%. Beyond that, what's the point? No need to gild the lily on utilization there.

LOL!!! NWM what do you use your cards for? A CL of 1k would kill me My last purchase was over 3k setting up a new comp and a wireless network. I'd much rather put that on a 0% card and have that money sitting in a 5% interest account for 6 additional months than raid my savings.

Re: Securing High Credit line

Anonymous — Fri, 27 Apr 2007 21:20:31 GMT

@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:
Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.

One any CL over $1000, your utilization should already be negligible. There's no need to ever carry a balance higher than $50 or so to have a bill to pay most months and keep an account active. $50 on a credit limit of $1000 is 5%. To FICO, that's negligible. Increasing to $5000 CL brings your utilization down to 1%. Beyond that, what's the point? No need to gild the lily on utilization there.
LOL!!! NWM what do you use your cards for? A CL of 1k would kill me My last purchase was over 3k setting up a new comp and a wireless network. I'd much rather put that on a 0% card and have that money sitting in a 5% interest account for 6 additional months than raid my savings.

I use my cards as a strategic tool for increasing my FICO score, and as an EMERGENCY source of cash (until I get far enough ahead to build up savings). Nothing more.

Yes, I can see certain instances where, if you have a moderate to high income that is at least highly likely to continue into the future (nothing is guaranteed) coupled with a high CL and zero interest, you might find it advantageous to put something you were going to buy anyway onto a CC. Myself, I just don't like debt. I've been burned by debt before, and I don't believe in debt. I don't believe in carrying any balance that I can't pay off in a month or two if push comes to shove.

Of course, especially if you've had better luck in life than I have, YMMV.

Re: Securing High Credit line

Anonymous — Fri, 27 Apr 2007 21:30:17 GMT

good for you NWM, that's exactly what you should use your credit cards for , small purchases and in case of emergencies and occasionly booking you vacation. People love to play around with high limits and buying toys on their cc having full intention on paying it down in the next ensuing months. But it only takes one good car in the shop, one good medical problem and then BAM let the fun of major debt begin. Credit Cards are evil. A necissity but evil. People need to start using their debit cards more than using their credit cards.

Re: Securing High Credit line

Anonymous — Fri, 27 Apr 2007 22:05:35 GMT

Boswd wrote:
good for you NWM, that's exactly what you should use your credit cards for , small purchases and in case of emergencies and occasionly booking you vacation. People love to play around with high limits and buying toys on their cc having full intention on paying it down in the next ensuing months. But it only takes one good car in the shop, one good medical problem and then BAM let the fun of major debt begin. Credit Cards are evil. A necissity but evil. People need to start using their debit cards more than using their credit cards.

If you are referring to my comp purchase well ... You know what they say when you 'assume'. Since I own my own business and just brought on a new employee who needs her personal workspace, my purchase was NOT a TOY. Wireless networking is essential in a small office space unless of course you want to be sued when your employee falls over a cable and lands on her face and it is cheaper than having some guy instal wires hidden all over the office.

I don't charge anything that I don't have cash to pay for, I just prefer that my money works for me NOT the other way around.

As long as you don't understand the difference between good debt and bad debt you wil never be on top of the credit game. Even if I revolved this debt the interest is 100% deductible as a business expense

Re: Securing High Credit line

Anonymous — Fri, 27 Apr 2007 22:28:28 GMT

@Anonymous wrote:
good for you NWM, that's exactly what you should use your credit cards for , small purchases and in case of emergencies and occasionly booking you vacation. People love to play around with high limits and buying toys on their cc having full intention on paying it down in the next ensuing months. But it only takes one good car in the shop, one good medical problem and then BAM let the fun of major debt begin. Credit Cards are evil. A necissity but evil. People need to start using their debit cards more than using their credit cards.

Agreed...though Brammy's case appears to be business related, and other factors enter into the equation there. But my view on debt in general was learned when that fabled School of Hard Knocks gave me my B.S. degree in Street-level Financial Management. I'm a firm believer in Murphy's Law, and I have found that going into personal debt is basically hanging a red flag on your rear end, hanging it out the window, and saying, "Murphy, please shoot me!" Seems like most of the knocks I took in life just happened to come at times when I was overextended and thought at the time, "Gee, this is okay...I can pay this later." I'm sure Murphy was having a real belly-buster when I said that...

Now if you're in Brammy's shoes and you are charging an asset that you can claim as a business expense and that you reasonably expect will provide a financial return, I think the rules are different.

Re: Securing High Credit line

Anonymous — Mon, 30 Apr 2007 14:37:05 GMT

Brammy, I wasn't referring to you at all, I was reffering to the general public, myself included back in the day when I had three GREAT cc and a great FICO score. People buy toy's Flat screen TV's, the best stereo's tons of clothes and shoes etc.

It is soo easy to to abuse credit cards, TOO EASY. All I was saying is people need to educated themselves on handling credit, discpline themselves, and use the debit card more often than the credit card. And from what I've been reading on this board for the past few months, people should worry first about getting their debt under control first before worrying about raising their FICO score. It sounds like alot of people are spreading themselves out too thin, like opening up new credit cards, or take out a loan they don't need so it can get reported to the CB's in hopes their score will raise because of this. This is a fast track to financial trouble. OH I KNOW FIRST HAND.

Re: Securing High Credit line

Anonymous — Mon, 30 Apr 2007 14:48:54 GMT

Boswd wrote:
Brammy, I wasn't referring to you at all, I was reffering to the general public, myself included back in the day when I had three GREAT cc and a great FICO score. People buy toy's Flat screen TV's, the best stereo's tons of clothes and shoes etc.

It is soo easy to to abuse credit cards, TOO EASY. All I was saying is people need to educated themselves on handling credit, discpline themselves, and use the debit card more often than the credit card. And from what I've been reading on this board for the past few months, people should worry first about getting their debt under control first before worrying about raising their FICO score. It sounds like alot of people are spreading themselves out too thin, like opening up new credit cards, or take out a loan they don't need so it can get reported to the CB's in hopes their score will raise because of this. This is a fast track to financial trouble. OH I KNOW FIRST HAND.

Yep. I buy toys with cash. Even my flat screen tv. I don't want to still be paying on something after I find something new and want something else.