topic Re: High utilization/Credit limit increase in Rebuilding Your Credit

High utilization/Credit limit increase

Anonymous — Wed, 16 Jan 2013 23:51:11 GMT

I currently have a high utilization rate on my credit cards and it's the only thing negatively affecting my credit score. It's at 85% total, and individually, the worst are at around 95%. I want to ask for a credit limit increase to help my utilization rate, but I don't want to request it and have it denied and have a hard inquiry on my report. What can I do to boost my chances of having the credit limit increase approved? Is there a certain percentage I should reach before doing the request?

The other reason I want an increase is that I'm hoping to add my husband as an authorized user to a couple of cards to help increase his score.

Re: High utilization/Credit limit increase

shols44 — Thu, 17 Jan 2013 03:04:02 GMT

Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC.

Re: High utilization/Credit limit increase

pizzadude — Thu, 17 Jan 2013 03:19:56 GMT

I agree that it's going to be tough to get a CLI with your current utilization maxed. Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.

Re: High utilization/Credit limit increase

Anonymous — Thu, 17 Jan 2013 03:33:30 GMT

@shols44 wrote:
Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC.

Thank you for the completely useless information. I didn't post here to be insulted and lectured.

I've already acknowledged that the utilization was high and that I'm paying it. I'm not looking for information on how to get and maintain a good credit score by keeping a decent utilization rate. I was hoping someone would know what what percentage it would be less risky for me to request an increase. Or if there are any other factors that would help.

As I've mentioned, I'm not looking to get an increase so I can spend more. I want the increase so my utilization would lower faster and to help boost my husband's credit score.

Re: High utilization/Credit limit increase

Anonymous — Thu, 17 Jan 2013 03:42:44 GMT

@pizzadude wrote:

I agree that it's going to be tough to get a CLI with your current utilization maxed. Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.

I understand it is tough to get a credit limit increase with my high utilization rate, and I am paying it down as quickly as possible. But at what point is it ok to ask for the increase?

I've already added my husband as an authorized user, but I think it's too soon for it to be reported to on his credit report. I've added him on a card with about 50% utilization and hoping it help his credit score. He currently has no accounts with revolving balances, a few deliquencies, and at least two accounts in collections. It would be the oldest account on his report, and one with a clean payment history.

Re: High utilization/Credit limit increase

pizzadude — Thu, 17 Jan 2013 03:51:25 GMT

@Anonymous wrote:
@pizzadude wrote:

I agree that it's going to be tough to get a CLI with your current utilization maxed. Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.
I understand it is tough to get a credit limit increase with my high utilization rate, and I am paying it down as quickly as possible. But at what point is it ok to ask for the increase?

I've already added my husband as an authorized user, but I think it's too soon for it to be reported to on his credit report. I've added him on a card with about 50% utilization and hoping it help his credit score. He currently has no accounts with revolving balances, a few deliquencies, and at least two accounts in collections. It would be the oldest account on his report, and one with a clean payment history.

Well it's really hard to know.....just due to the fact that creditors have different policies regarding their CLIs. I'd think that you'd want to be less than 50%, at least, before you ask for an increase....

Re: High utilization/Credit limit increase

Anonymous — Thu, 17 Jan 2013 04:00:55 GMT

@pizzadude wrote:

Well it's really hard to know.....just due to the fact that creditors have different policies regarding their CLIs. I'd think that you'd want to be less than 50%, at least, before you ask for an increase....

Darn, I was hoping to be able to do it sooner. Anybody familiar with Bank of America's or Capital One's policies?

Re: High utilization/Credit limit increase

beb86 — Thu, 17 Jan 2013 05:59:45 GMT

@Anonymous wrote:
@shols44 wrote:
Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC.

Thank you for the completely useless information. I didn't post here to be insulted and lectured.

I've already acknowledged that the utilization was high and that I'm paying it. I'm not looking for information on how to get and maintain a good credit score by keeping a decent utilization rate. I was hoping someone would know what what percentage it would be less risky for me to request an increase. Or if there are any other factors that would help.

As I've mentioned, I'm not looking to get an increase so I can spend more. I want the increase so my utilization would lower faster and to help boost my husband's credit score.

This is info pulled from the fico high achievers thread....best chance for a CLI is UTIL <30%. I understand you are new here and the members here will tell you info based on what was posted and more importantly real life experiences. The above poster was just trying to provide helpful advice for your question/situation. What are your current cards and Util on them...if you have any GE backed cards with low UTIL you have good chances at a CLI

Re: High utilization/Credit limit increase

_jb_ — Thu, 17 Jan 2013 09:11:58 GMT

@Anonymous wrote:

Darn, I was hoping to be able to do it sooner. Anybody familiar with Bank of America's or Capital One's policies?

I can't speak for BoA, but I know from experience (last night) that Capital One does a soft pull for CLI (and explicitly explains so prior to doing it) so it can't hurt to try sooner than <50% utilization (UT? - not good with all of the acronyms here yet..) if you feel like it will help your situation sooner.

Re: High utilization/Credit limit increase

Shogun — Thu, 17 Jan 2013 13:34:16 GMT

I would have to say that below 50% you would stand a chance and below 30% a better chance. It's always a YMMV type of thing. Also when trying for a CL they ask your income, so improvement in that area might make your chances better. I wish you the best of luck.

Re: High utilization/Credit limit increase

Anonymous — Thu, 17 Jan 2013 18:10:23 GMT

@beb86 wrote:
@Anonymous wrote:
@shols44 wrote:
Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC.

Thank you for the completely useless information. I didn't post here to be insulted and lectured.

I've already acknowledged that the utilization was high and that I'm paying it. I'm not looking for information on how to get and maintain a good credit score by keeping a decent utilization rate. I was hoping someone would know what what percentage it would be less risky for me to request an increase. Or if there are any other factors that would help.

As I've mentioned, I'm not looking to get an increase so I can spend more. I want the increase so my utilization would lower faster and to help boost my husband's credit score.

This is info pulled from the fico high achievers thread....best chance for a CLI is UTIL <30%. I understand you are new here and the members here will tell you info based on what was posted and more importantly real life experiences. The above poster was just trying to provide helpful advice for your question/situation. What are your current cards and Util on them...if you have any GE backed cards with low UTIL you have good chances at a CLI

I realize my response came off kind of aggressive, but I felt and still feel that shols44's post was a little uncalled for. This was posted on the "Rebuilding Your Credit" section, and I didn't post it to be judged and retold it was bad and lectured about it. I know it's bad, that's why I said it was bad and it was posted on this forum.

Shols44 ignored my questions and gave me irrelevant information. I wasn't asking what utilization I should be at to have a good score, or advice on how to use my credit cards. I was asking that given my high utlization, at what point would I have a better chance to request the increase, not my best chance for the increase. Also, Shols44 did not mention anything about credit limit increases. He/She just merely gave advice on how to use my credit.

Re: High utilization/Credit limit increase

Mama-j — Thu, 17 Jan 2013 22:22:26 GMT

I also had CL from Cap1 and it was soft pull. BofA will be hard pull.