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I got a Navy Federal Cash Rewards card with limit of $1,000 back in November. My balance is currently $628 (recent purchases while my debit card was being replaced). My scores are mid 600s (640-680) and I make just shy of $60k a year. I would like to apply for a CLI but wasnt sure if they automatically do a CLI at some point or do I need to request one? I can wait till my next paycheck where I will be paying some of these balances down. I just don't want to apply and get denied. In the process of rebuilding my credit after Bankruptcy (almost two years ago).
Current cards
Discover Secured: Bal 30, Limit 200
CreditOne: Bal 347, Limit 750
Kohls: Bal 64, Limit 300
Navy Federal Cash Rewards: Bal 628, Limit 1000
I would probably pay down the card a little and THEN ask for one. Navy is generous, but your card is currently sitting at around 63% utilization. I would pay it down as much as possible before asking.
@Anonymous wrote:I got a Navy Federal Cash Rewards card with limit of $1,000 back in November. My balance is currently $628 (recent purchases while my debit card was being replaced). My scores are mid 600s (640-680) and I make just shy of $60k a year. I would like to apply for a CLI but wasnt sure if they automatically do a CLI at some point or do I need to request one? I can wait till my next paycheck where I will be paying some of these balances down. I just don't want to apply and get denied. In the process of rebuilding my credit after Bankruptcy (almost two years ago).
Current cards
Discover Secured: Bal 30, Limit 200
CreditOne: Bal 347, Limit 750
Kohls: Bal 64, Limit 300
Navy Federal Cash Rewards: Bal 628, Limit 1000
Just to echo previous posts, I would pay that balance down first. Not sure how often NFCU does automatic CLI's.....my experience was that I had to ask for mine, which resulted in a hard pull inquiry. The inquiry doesn't matter to me....but the increase from 11k to 29k was pretty awesome!
@Anonymous
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@Hex wrote:
If you have the time to spend and you want to maximize your credit score for building purposes (to get a house or car [or just for a challenge ]) I would recommend the following:
For the best score you should have all of your cards report a zero balance and let one card report a balance of less than 7.99% (up to 30% is really fine unless you’re super OCD like me) of THAT CARD’S total available credit limit. You can still use the other cards just make sure to pay them to zero before their statements are generated (cut).
The one card that you let report a balance can then be paid down to zero as soon as it’s statement cuts with the balance. If you do this you will never have to pay interest on any of your cards.
I actually don't think this is the best way to "build" a credit score. AZEO is good for right before you are applying for something. It should be used for a specific situation. It is NOT the best thing to do long term, because the FICO algorithm will ding your score if you're not showing managed and responsible use of multiple cards. You get a score bump for showing "recent use of credit cards." If you're consistently let all of the same cards report with a zero balance, and only using one card, I believe you lose out on that score bump. Additionally, as others have pointed out, lenders like to see people using multiple cards. If your suggestion was for him to do AZEO for a specific application, then I agree. If it was to ALWAYS employ this strategy to "build" his credit score over time, then I disagree.