Update -- DISCO auto CLI, but no Amex 3x CLI. Advice ahead?

[Anonymous]

Howdy! 

So, since last posting, it's been a mixed bag -- I've been executing on my credit plan, paying my bills and managing my credit responsibly.

But some things haven't gone as I would have liked. One unexpected thing did happen. And I could use some advice.

My score numbers have been steady or increasing a bit. 

I tried to increase my Overstock credit line (soft pull), but I got denied. The denial letter I got cited a very low credit score, among other factors -- lower than my other scores. I was surprised. It seems wrong to me; I'm not sure what scoring system they are using. But I'll try another soft pull at some point. Though, I may get tired of bothering and just let it do it's own thing (I'll barely use it, though -- the SL is only $250.00, so I wonder if it will increase on it's own unless I use it). 

I tried the AMEX 3x CLI and got denied. My scores are increasing, steadily; I checked the date that I opened and it seemed right. But when I got the letter, it said I'm too new of a customer -- among other factors. I dunno if this means that it was (still) somehow too soon. But I'll try again in 60 days. I'm hoping for the 3x increase, because some of the deals that Amex has available to card holders are very nice. I could put them to good use.

I was planning on applying for a Discover CLI coming up -- but, surprise, I automatically received one yesterday. This is around 90 days since my card was unsecured (previously it was). So, that's good news. I hope to see more CLI's from them. 

Questions: 

1. Should I bother to ask for more from Discover, immediately after getting the automatic CLI? Or maybe don't push it? I do use their card a lot; it's handy and accepted at a lot of places. Putting this out there: In January, around my one year anniversary of getting my first Discover, I was thinking of asking for a second card -- probably their travel card, but maybe their standard Cashback. I'd like to factor that into my decision on asking for another CLI.

2. What's my strategy with AMEX? Right now, it's at 1000 SL. I like the card; I will use it. Discover is growing, but it has not yet. I've only had it for a couple months. Should I be patient, keeping trying the 3x CLI until I'm approved? Is it likely to follow the same track as Discover eventually -- rewarding good and responsible use? I do like the perks of Amex. Solid card. 

Thanks everyone! Hope you're having a nice holiday! Gobble gobble!

[Anonymous]

When Amex approves a starting limit of either $500 or $1,000 as in your case, the general rule is that you should wait 180 days from the date of approval before requesting a CLI.  There's no harm in trying again for a CLI before the 180 days but Amex prefers you to establish a useage and payment history before granting an increase. The 61-day 3X CLI usually occurs when you have higher credit scores or an extensive credit profile. Amex pulls Experian FICO 8 score only, so you should aim to get your score above 670 before requesting a CLI.

[Anonymous]

Wow. Now that is a very succinct and clear answer -- thank you! That explains why the denial letter said "too new of an account" at 61 days. 

I certainly don't mind waiting. Question: Would it hurt anything if I tried again in, say, 61 days -- as in, does Amex take note of the denials in the interim and count them against you? Probably sort of a silly question, but I do wonder. 

If it's better to just wait the 120 days, that's fine. I'll work on getting my scores up over 670 in EXP in the meantime. They are close, at the moment. 

Any advice on going to Discover for more, after the auto-CLI? 

[Anonymous]

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@Anonymous wrote:

Wow. Now that is a very succinct and clear answer -- thank you! That explains why the denial letter said "too new of an account" at 61 days. 

I certainly don't mind waiting. Question: Would it hurt anything if I tried again in, say, 61 days -- as in, does Amex take note of the denials in the interim and count them against you? Probably sort of a silly question, but I do wonder. 

If it's better to just wait the 120 days, that's fine. I'll work on getting my scores up over 670 in EXP in the meantime. They are close, at the moment. 

Any advice on going to Discover for more, after the auto-CLI? 

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No, it would not hurt to try again for a CLI in 30 or 60 days.  Requesting a CLI on a new account does not reset the clock; in other words an early request does not mean that Amex starts counting the request date as Day 1.  The worst that could happen is that you get a denial for asking "too soon."

The reason you'd want to get your score above 670 is because that's the cutoff point between a sub-prime aka "Fair" score and a "Good"  credit score.  When you're below 670 you'll have difficulty getting card approvals and CLIs; or you'll be assessed high interest rates to compensate for the risk the lender is assuming to approve an account with a sub-prime score.

You can call Discover and ask if there's the possibility of an additional increase.  On these forums its referred to as Discover "double dip" and I discussed the method I use in this thread:  1st Discover CLI (Luv button) . I suppose its possible to sign in to your online account, go to "Manage" then "Credit Line Increase."  Once there you can request an increase.  Whether or not its granted, you should also call Discover to see if a CSR can approve you for an additional amount.

[RonM21]

Op, if you are planning on maybe getting a second Discover card, I would think that it wouldn't hurt asking for another CLI, if you choose to do so. That should have no effect on your app in January, if you go the SP route, IMO.

[Anonymous]

Hey Folks!

Update: After reading some background info on CLI requests initiated by cardholders here on the forums, I decided to apply for a CLI myself. This is in addition to the auto-CLI I received from Discover. It looked like some of the more definitive guides to Discover CLI's said that after receiving an auto-CLI, it's not a bad idea to go back and request more directly, because there may be more credit available in their system they haven't allocated yet. 

So, through the online portal, I applied and -- unfortunately -- denied. I'm sure it was a SP at least, because Discover didn't say they were pulling my credit report after I submitted the information requested to process the CLI. The denial letter will come in the mail and I'll know more then, but I have a feeling it's just that I'm at my limit with them for now. I think this is why my auto-CLI was to $1900 rather than, say, $2000 -- I was due for review and that's the most they could give me. So, at least, this is the limit I'm at until my scores increase and they get to know me (my spending) even more over time. 

My card has grown quite a bit: After going from a secured with a small $300 limit for 7 months, it was unsecured in August and jumped to $1500 -- and then $1900 late last month. I think this is pretty good. I do appreciate how Discover seems to reward responsible spending with CLI's, as it helps with spending and purchases, even for those with small limits compared to others. Hopefully, I'll remain on the auto-CLI track with them, because I do like the card -- it's great for managing and planning daily spending, purchases and so forth. The Auto-CLI seemed to happen around 90 days after my card was unsecured.

I do wonder if the SP denial will affect Discover considering me for auto-CLI's, or if it just doesn't even register really -- they'll do what they want regardless with auto-CLI increases if I'm due anyway.

I also wonder if a denial means I should hold off on requesting the second Discover travel card in January that I was considering -- or if it can't hurt to see how things go with them between now and then. The other option is to ask for a PC from my Gas & Restaurant card to their Travel card, which might make more sense. Lots to consider. 

Thoughts?