Chase SL recon

[Anonymous]

Help! I am super new to this site and to credit in general. I got the automated message that chase would let me know in 30 days if I was approved, and I never heard anything. I figured I was denied. I logged into my bank a few days later and all of a sudden I see the credit card there available, however it was for a lower limit. The question is what do you say when you call these numbers? Do you ask for a higher limit? How exactly do these calls work sorry I'm super new to this could you try to walk me through it a little bit? I appreciate any help thanks

[FinStar]

Hi @Anonymous and welcome to the forums.

Congrats on the approval.

Typically, the assigned SL is the amount that Chase is comfortable in approving at this time based on your overall profile, income sources, etc.  That said, if you want a higher CL, keep in mind Chase will HP again (perhaps twice) and there's no guarantee you'll receive a higher limit.   Out of curiosity, what CL amount was the card approved?

[Anonymous]

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@FinStar wrote:

Hi @Anonymous and welcome to the forums.

Congrats on the approval.

Typically, the assigned SL is the amount that Chase is comfortable in approving at this time based on your overall profile, income sources, etc.  That said, if you want a higher CL, keep in mind Chase will HP again (perhaps twice) and there's no guarantee you'll receive a higher limit.   Out of curiosity, what CL amount was the card approved?

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It was for $500. 

[Anonymous]

Honestly I would just leave it alone. As stated above, Chase approved what they're comfortable with. Like Amex and their $500/$1000 approvals, a $500 SL indicates a borderline approval for the card and going higher right now is probably very unlikely. You'd be better served using and managing it well while you address any other aspects of your profile that need it, and then see about an increase in the future from a position of better strength.

[joltdude]

Unfortunately a 500$ SL (similar to a 500/1000 CL from Amex as previous mentioned, means they have some reservations about your approval... From what youve said, i presume its because your new to credit/have a thin credit profile.. Don't try for a CL ... Since it is lower, there are better chances of Auto CLIs, which are SP, (Seen this with Freedom and Chase Amazon Cards)  but its still a hard pull or two if you ask for it.... 

-J

[Anonymous]

Thanks I appreciate the input. I am brand new to credit I only have had a credit card for 8 months. I'm actually surprised I got approved for the Chase freedom card anyway. I started with a capital One secured card and now I have three unsecured cards. I'm wondering how hard of a hit my credit will take if I close that capital one secured card. I had to pay $300 to have a $300 limit. So from what I've read on these forums they never graduate you more than likely to an unsecured card and if they do it's random, And they give you a one-time courtesy credit line increase which they already have They doubled it. I'm just curious when to cancel the card and get my deposit back? Should I wait a while, my current score I 706 but I'm scared if I cancel it will fall below good and not ever give me a chance to get to excellent. Any advice is appreciated thanks. 

[Slabenstein]

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@Anonymous wrote:

Thanks I appreciate the input. I am brand new to credit I only have had a credit card for 8 months. I'm actually surprised I got approved for the Chase freedom card anyway. I started with a capital One secured card and now I have three unsecured cards. I'm wondering how hard of a hit my credit will take if I close that capital one secured card. I had to pay $300 to have a $300 limit. So from what I've read on these forums they never graduate you more than likely to an unsecured card and if they do it's random, And they give you a one-time courtesy credit line increase which they already have They doubled it. I'm just curious when to cancel the card and get my deposit back? Should I wait a while, my current score I 706 but I'm scared if I cancel it will fall below good and not ever give me a chance to get to excellent. Any advice is appreciated thanks. 

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Unless shaving $600 off your TCL would push you over a util threshold, closing the Cap1 secured shouldn't have an effect on your credit score.  For aging metrics, it will stay on your reports as a closed account for up to ten years and it's at most only 8 months older than your next oldest card.  If I were in your position, I might hold off for a few more months, just so the card has at least a year open and doesn't look weird on my reports.  Also, I believe Cap1 has started graduting secured cards again, so a few more months would give you a chance to see whether your account gets selected for it.

[addicted_to_credit]

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@Anonymous wrote:

Thanks I appreciate the input. I am brand new to credit I only have had a credit card for 8 months. I'm actually surprised I got approved for the Chase freedom card anyway. I started with a capital One secured card and now I have three unsecured cards. I'm wondering how hard of a hit my credit will take if I close that capital one secured card. I had to pay $300 to have a $300 limit. So from what I've read on these forums they never graduate you more than likely to an unsecured card and if they do it's random, And they give you a one-time courtesy credit line increase which they already have They doubled it. I'm just curious when to cancel the card and get my deposit back? Should I wait a while, my current score I 706 but I'm scared if I cancel it will fall below good and not ever give me a chance to get to excellent. Any advice is appreciated thanks.

Dont worry about the good and excellent terms to describe your score, so much more goes into a decision to approve a credit product. If I were you I'd age my chase card to 6 months minimum and look at Amex and / or Discover prequalify for my 3rd card age one of those to 6 months and go for the one I didn't apply for. I would not close the Cap1 card unless it comes with an annual fee. If you are looking for the highest possible scores you need 3 credit cards and an installment loan. Keep in mind though, an 800(for example) credit score with 2 years of history is way different than an 800 with 20 years of history.