topic Re: Can requesting credit limit increase keep cards active? in General Credit Topics

Can requesting credit limit increase keep cards active?

Subexistence — Fri, 19 Jan 2018 16:11:41 GMT

Is it possible to avoid having a card shut down for inactivity by simply requesting credit limit increases rather than putting a little spend?

Re: Can requesting credit limit increase keep cards active?

Anonymous — Fri, 19 Jan 2018 16:27:44 GMT

That seems really counterintuitive. I.e. a CC issuer responding favorably to a person with zero spend for a long time (not even buying a gallon of milk or a tank of gas) making CLI requests.

Part of the expectation any person should have who is in the game of opening multiple credit cards (whether for bonuses, for the scoring advantage of having several cards, etc.) should be that he needs to charge something small (one necessary purchase) every six months on any card he'd be sad to see get closed. If a person cannot do that, he should be out of the game -- that's my perspective.

Re: Can requesting credit limit increase keep cards active?

Subexistence — Fri, 19 Jan 2018 16:51:51 GMT

@Anonymous wrote:
That seems really counterintuitive. I.e. a CC issuer responding favorably to a person with zero spend for a long time (not even buying a gallon of milk or a tank of gas) making CLI requests.

Part of the expectation any person should have who is in the game of opening multiple credit cards (whether for bonuses, for the scoring advantage of having several cards, etc.) should be that he needs to charge something small (one necessary purchase) every six months on any card he'd be sad to see get closed. If a person cannot do that, he should be out of the game -- that's my perspective.

Do you have any experience with small balance waivers?

https://www.doctorofcredit.com/small-balance-waiver-a-k-a-lots-of-free-99-cent-amazon-gcs/

I wonder if people get shutdown for that. Right now I'm doing it for my barclayscard.

Re: Can requesting credit limit increase keep cards active?

FinStar — Fri, 19 Jan 2018 17:35:36 GMT

OP, simply put, a CLI is not transactional activity that keeps the tradeline from getting closed (or CLD) due to inactivity.

What's the point of getting a CC if you're not going to use it periodically? Some prior threads appear indicative that you like to play with fire, yes?

As far as AA, yes it has happened. Small balance write-offs consistently done by consumers will definitely put you on the radar. Closures have happened, and just be aware, just because someone doesn't post a thread on these forums doesn't mean it hasn't or doesn't happen. Lots of data outside of this spectrum.

Re: Can requesting credit limit increase keep cards active?

SouthJamaica — Sat, 20 Jan 2018 02:41:48 GMT

@Subexistence wrote:
Is it possible to avoid having a card shut down for inactivity by simply requesting credit limit increases rather than putting a little spend?

Re: Can requesting credit limit increase keep cards active?

JoeLuvsHisCredit — Sun, 21 Jan 2018 16:50:58 GMT

NO I just had a HP CLI and They closed my card for inactivity. The cli was 3 weeks earlier before they closed it

Re: Can requesting credit limit increase keep cards active?

Anonymous — Sun, 21 Jan 2018 17:57:11 GMT

@JoeLuvsHisCredit wrote:
NO I just had a HP CLI and They closed my card for inactivity. The cli was 3 weeks earlier before they closed it

Sorry to hear this, Joe. How many consecutive months of inactivity was there? (Zero purchases, Zero balance, Zero payments) And who was the CC issuer? Was it a major credit card (VISA, MC, Amex, or Discover logo on it) or a card that can only be used at a certain merchant?

Re: Can requesting credit limit increase keep cards active?

Revelate — Sun, 21 Jan 2018 17:59:03 GMT

I think it's worse.

A CLI request will almost certainly trigger a review, and generally speaking fewer reviews are better when it comes to us the consumer.

I still play by the needle in a haystack defense: I don't stray (much) beyond norms when it comes to credit... I have probably too many accounts now and am an outlier there, but I don't think I see axes swinging for that yet in the current economy.

Re: Can requesting credit limit increase keep cards active?

JoeLuvsHisCredit — Sun, 21 Jan 2018 18:36:20 GMT

@Anonymous wrote:
@JoeLuvsHisCredit wrote:
NO I just had a HP CLI and They closed my card for inactivity. The cli was 3 weeks earlier before they closed it
Sorry to hear this, Joe. How many consecutive months of inactivity was there? (Zero purchases, Zero balance, Zero payments) And who was the CC issuer? Was it a major credit card (VISA, MC, Amex, or Discover logo on it) or a card that can only be used at a certain merchant?

It was care credit and it was 18 months with no payments etc and I got my 15k cli

Re: Can requesting credit limit increase keep cards active?

Anonymous — Sun, 21 Jan 2018 19:12:13 GMT

Yep, that's in keeping with what we've seen. Usually takes a long time before a card will be closed due to inactivity (though a few issuers like Wells Fargo have closed accounts after 7 months, though even still many WF customers can go longer with no closure).

As Revelate observes, the CLI request likely induced the closure -- you requested that they review your credit reports, they did, and they saw that you hadn't used it in a long time -- thus closing it. I know that bites. Sorry pal.

Re: Can requesting credit limit increase keep cards active?

Anonymous — Mon, 22 Jan 2018 03:32:56 GMT

I would say that a "best practice" whenever you are going to be requesting a CLI is to have used the card (ideally a good amount) in the cycle(s) leading up to your CLI request. That can definitely be a bit more difficult with a non-major card such as a Care Credit account through Synchrony, as those types of accounts may only be used every once in a long while based on a specific need at a specific time. There are some work arounds for this, though. For Care Credit, one recommendation is to either go to a local Rite-Aid and make a small purchase on occasion or go to your local vet and buy a cheap counter item for < $10 for your pet.

Re: Can requesting credit limit increase keep cards active?

HeavenOhio — Mon, 22 Jan 2018 05:18:37 GMT

We've heard of CLI requests turning into adverse action, usually CLDs. But usually, the AA is immediate or after a message saying the request has to be reviewed. To approve the request and close the card three weeks later seems weird.

As BBS mentions, CareCredit is somewhat of a different animal. It's certainly plausible that people would request CLIs after non-use in anticipation of a procedure coming up.