cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Limit Increase Help

tag
ultimaterewardsguy357
Regular Contributor

Credit Limit Increase Help

I have been following these forums for some time before I mustered up the courage to start an account and I am seeing varying schools of thoughts on CLIs. These forums have been very helpful and I've been elevated from New Member to Member. Whoop! I received a CLI from my oldest CapOne QS card last November and am eligible for another one in May (2 year anniversary). I know CapOne typically gives out CLIs every 6 months which is a SP but when I tried to request a CLI today, I saw something about my usage was low. I looked at my statements from December (65% in transactions) and January (137% ish). I regularly keep 0% UTI across all my cards: QS, CapOne Sec, Discover, and now Merrick Back until I got hit with what I've heard of an all-zero penalty one day and then QS reported a 1% UTI and my score went up - why is that?  

 

My current limits: QS ($1000), PL Sec ($201), Disco ($500), Merrick ($1250)

 

I tried my hand at a Disco CLI request and was told my account is too new --rookie mistake-- and that I am eligible after the end of my third statement around the end of March.

 

I've had my QS for almost two years and I have opened up the others on Sept 19, Dec 19, Jan 20, respectively. Since, I will be at 3/24 after May, I want to try my hand at a Chase Freedom card after my Merrick Bank Auto CL in September.

 

What's the consensus on CLI? I saw somewhere you want to put 80-90% of your regular spend on the card, let it report low UTI 1-9% and pay off the balance after it reports. Am I misinterpreting or is it more of a YMMV situation and I should plan to continue reporting zero UTI --I don't want another 15-20 point hit for having all cards at zero. Thanks!

10/23/2023 [FICO Score 8] EX: 768 TU: 761 EQ: 777

Future Cards:
Message 1 of 7
6 REPLIES 6
Taurus22
Valued Contributor

Re: Credit Limit Increase Help

From my experience, what you filter through the card monthly is irrelevant. And what others may have posted seems to be YMMV scenarios due to their own credit history. Zero balance is not always the best approach either. Most people tend to stick to the AZEO rule.....All zero's except one. Personally, I like some balance to show on my statement....it shows steady use of the card (to the credit bureaus). If you post zero balance each month, it appears that you are not using your credit. Anywhere in the 1-10% range is perfect, don't be scared to use it.....let it report.

 

Your credit looks fairly young (Approx 2 yrs). When I started out, I let my cards age a bit (6-12 mths) before I tried to CLI. It's generally a good rule of thumb. Building Credit #1 Rule: Be patient.  I know you want to build quickly and every month feels like tree sap running down a pane of glass, but when you're starting out, it really does take time for you to build.....a history. The CLI's will come.....I usually don't push too hard myself, giving myself about 6-10 mth windows between attempts. Some people are more impatient and try every 2-4 months, but these credit card issuers do see a record of your attempts, so this can also be detrimental sometimes, appearing to be heavy credit-seeking.

 

Just my $0.02....

 

My Wallet
Sock Drawered

On Deck: No Plans Currently
Message 2 of 7
Anonymous
Not applicable

Re: Credit Limit Increase Help

You never want to let all cards report 0% You should keep a small balance when statement cuts to report, that way you won't suffer a point drop in your scores as far as that's concerned.

 

You said you received your last CLI with Cap1 last November. 2019, right? If so it hasn't been 181 days (not 6 calendar months) - that could be one reason for denial as well as low usage despite December and January. They may have pulled either an older report, reporting no balance or your February statement had you received it yet if it was reporting a 0 balance.

Message 3 of 7
ultimaterewardsguy357
Regular Contributor

Re: Credit Limit Increase Help

That's very helpful. I think the waiting 6-month rule before asking for a CLI makes sense. As I am building, I want to ensure that I am doing things the right way without being hard on myself.

 

On the UTI side, I will plan on keeping 1-9% on each card.

 

Thanks, Taurus22!

10/23/2023 [FICO Score 8] EX: 768 TU: 761 EQ: 777

Future Cards:
Message 4 of 7
ultimaterewardsguy357
Regular Contributor

Re: Credit Limit Increase Help

Thanks, angelwingz. I will keep those UTIs low as opposed to all zeros.

 

Yes, CapOne increased in November and the Feb statement cuts on the 18th. I've spent just close to $800 this statement cycle.

10/23/2023 [FICO Score 8] EX: 768 TU: 761 EQ: 777

Future Cards:
Message 5 of 7
Anonymous
Not applicable

Re: Credit Limit Increase Help

If you want to benefit the most from scores, keep your aggregate utilization below 8.9%, not 9. And for individual, keep utilization below 29.9%

Message 6 of 7
Anonymous
Not applicable

Re: Credit Limit Increase Help


@Anonymous wrote:

If you want to benefit the most from scores, keep your aggregate utilization below 8.9%, not 9. And for individual, keep utilization below 29.9%


Actually the breakpoint is 28.9%, not 29.9%.

Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.