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Jumped from the garden for this

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Re: Jumped from the garden for this


@sarge12 wrote:


That is about average for me on starting limit, but I never get a CLI. I am a strict transactor, and usually even make multiple payments each month. That works real well for fico scores, and starting limits, but also causes CLI denials on a consistant basis. When the issuer looks at my highest balance on their card and see that it is 800 dollars on a 11,400 limit, they deny the CLI. They give the reason as "you have not utilized enough of your existing credit limit with us" I do understand their logic based on how I use credit cards, so I usually just accept the fact that my starting limit will be the forever limit on my cards.


800+ scores... time to shift gears mentally from rebuilding to maintaining.

 

Once you let go a little bit of control things go up in terms of CL.  I setup auto pay for the statement balance and just keep an eye out for things I didn't swipe for and let it be.  Your example sounds like Cap1 where you have to constantly swipe to get a nickel out of them.  Focus your efforts elsewhere since you should be able to hit 50% of income per lender pretty easily.  Higher limits make micromanaging a thing of the past since it's hard to spend say 10% of your limit if your CL is 50K+.  Then again there are some around here that put that much on a 5K CL and make multiple payments because of the CL.  

 

My approach + setting a mental 10% threshold per card has paid tons in CLI's over the years.  Once you get past the glass ceiling and get the limits up then getting larger starting limits is easier as well even if you have to call and overide the computer a bit.  I got an 11K approval on Uber and called them up and in 2 minutes it was adjusted to 25K w/o any issues.

500K+ TCL / 800+ FCOs
Message 21 of 33
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Re: Jumped from the garden for this


@GApeachy wrote:

@sarge12 wrote:

@GApeachy wrote:

Yes, congrats!  Never heard of Quicken but I like the sound of your sl!


 I am a strict transactor, and usually even make multiple payments each month. That works real well for fico scores, and starting limits, but also causes CLI denials on a consistant basis. 


Hmmmmm, didn't know that either.  Might splain some thangs for me.


I had 1 CSR explain it to me in detail, saying that on my credit report only 1 card had ever even reported over 20% utilization. She told me that they can only grant credit limits based on a percentage of their assets. She said that extending a higher credit limit to someone who uses very little of their existing credit limit, could prevent their doing so for someone else that needs the CLI. She advised me to wait till balances post to pay them, and try again later. That is advice I will not take, but is something that I do think someone should consider if CLI's are important to them. If you PIF before the statement cuts, the balance reported to the CRA's is 0. She said that some of my cards hhad never reported a balance.

TU fico08=823 02/27/20
EX fico08=813 02/13/20
EQ fico08=826 03/05/20
EX fico09=821 03/04/20
EQ fico bankcard08=849 02/25/20
Message 22 of 33
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Valued Contributor

Re: Jumped from the garden for this


@sarge12 wrote:


I had 1 CSR explain it to me in detail, saying that on my credit report only 1 card had ever even reported over 20% utilization. She told me that they can only grant credit limits based on a percentage of their assets. She said that extending a higher credit limit to someone who uses very little of their existing credit limit, could prevent their doing so for someone else that needs the CLI. She advised me to wait till balances post to pay them, and try again later. That is advice I will not take, but is something that I do think someone should consider if CLI's are important to them. If you PIF before the statement cuts, the balance reported to the CRA's is 0. She said that some of my cards hhad never reported a balance.


Falls in line with what I just said above.

 

 

I don't trypically let huge balances report but, I also don't chase them with payments like a debit card.  When i'm going for a Bonus I'll just hit the amount needed in a single charge and let it fly and pay in full once it's due.  i.e. WF Propel $3K / $300 SUB... put $3K on it with a $7500 limit, it posts, it reports, it's paid.  No big deal.  Score variance maybe 10 points for that particular month.

500K+ TCL / 800+ FCOs
Message 23 of 33
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Re: Jumped from the garden for this


I don't trypically let huge balances report but, I also don't chase them with payments like a debit card.  When i'm going for a Bonus I'll just hit the amount needed in a single charge and let it fly and pay in full once it's due.  i.e. WF Propel $3K / $300 SUB... put $3K on it with a $7500 limit, it posts, it reports, it's paid.  No big deal.  Score variance maybe 10 points for that particular month.


Without a doubt, letting it actually report a balance helps you receive CLI's. If you always PIF before a statement cuts it looks like the card is never used. That can be, and often is beneficial to maximizing your fico scores. It does however, make CLI's less likely. I just hate debt to the degree that I always PIF multiple times, even though I know it is not smart if you wish to get higher credit limits.

TU fico08=823 02/27/20
EX fico08=813 02/13/20
EQ fico08=826 03/05/20
EX fico09=821 03/04/20
EQ fico bankcard08=849 02/25/20
Message 24 of 33
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Established Contributor

Re: Jumped from the garden for this

Correct me if I am misunderstanding, but doesn't reporting a balance have more to do with SL of new cards and not with CLI of the account you have. I thought that they usually take the internal information, a current credit score (at least within 6 months) and then maybe look at your other accounts to see where you are with those limits and utilization. I know it's a little more involved and each creditor is/can be different, but you are discussing CLIs and whether you report a balance or not the creditor knows what you used with them right...   Smiley Indifferent

“Most people work just hard enough not to get fired and get paid just enough not to quit.”
Take the myFICO Fitness Challenge


Message 25 of 33
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Re: Jumped from the garden for this


@HighAchiever wrote:

Correct me if I am misunderstanding, but doesn't reporting a balance have more to do with SL of new cards and not with CLI of the account you have. I thought that they usually take the internal information, a current credit score (at least within 6 months) and then maybe look at your other accounts to see where you are with those limits and utilization. I know it's a little more involved and each creditor is/can be different, but you are discussing CLIs and whether you report a balance or not the creditor knows what you used with them right...   Smiley Indifferent


Its a chicken and egg discussion.

 

Low existing limits = lower approvals

to get higher CL you have to report a balance to show use

With higher CL's it's possible for higher approvals

 

e.g. Chase wants to see 1 year at X level before they'll issue a large limit

 

A one off approval w/ only AU accounts pulls off a 15K CSR approval w/o having cards in his name... 

500K+ TCL / 800+ FCOs
Message 26 of 33
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Re: Jumped from the garden for this


@Obscure-Expert wrote:

@HighAchiever wrote:

Correct me if I am misunderstanding, but doesn't reporting a balance have more to do with SL of new cards and not with CLI of the account you have. I thought that they usually take the internal information, a current credit score (at least within 6 months) and then maybe look at your other accounts to see where you are with those limits and utilization. I know it's a little more involved and each creditor is/can be different, but you are discussing CLIs and whether you report a balance or not the creditor knows what you used with them right...   Smiley Indifferent


Its a chicken and egg discussion.

 

Low existing limits = lower approvals

to get higher CL you have to report a balance to show use

With higher CL's it's possible for higher approvals

 

e.g. Chase wants to see 1 year at X level before they'll issue a large limit

 

A one off approval w/ only AU accounts pulls off a 15K CSR approval w/o having cards in his name... 


From my own personal experience, not reporting balances has no effect on starting limits. CLI's on the other hand will look at how you have been using their cards primarily. If two years after getting a card that was 11400 SL, you request an increase, and they can see your highest balance ever was 700 dollars...they will not grant the increase. It does not even matter if all your scores are over 800, you will be denied simply because you have used very little of the existing credit limits. They can't possibly use data about how you use their card to set the SL if it is the first card with that bank. For the record, my starting limit is always 10,000 at least, and has been for at least 3 years. I am rejected for credit limit increases every time. It is always for the "have not used a sufficient amount of your existing credit limits with us."

TU fico08=823 02/27/20
EX fico08=813 02/13/20
EQ fico08=826 03/05/20
EX fico09=821 03/04/20
EQ fico bankcard08=849 02/25/20
Message 27 of 33
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Valued Contributor

Re: Jumped from the garden for this


@HighAchiever wrote:

Correct me if I am misunderstanding, but doesn't reporting a balance have more to do with SL of new cards and not with CLI of the account you have. I thought that they usually take the internal information, a current credit score (at least within 6 months) and then maybe look at your other accounts to see where you are with those limits and utilization. I know it's a little more involved and each creditor is/can be different, but you are discussing CLIs and whether you report a balance or not the creditor knows what you used with them right...   Smiley Indifferent


I actually posted a response to this as a reply to someone elses reply accidently. From my experience, CLI's look mainly at how you have handled the account you are requesting an increase on. My starting limits are always over 10,000 dollars, and every time I have requested an increase I have been denied. That has been the case for at least 5 years.   PS::: Look at my scores, my credit profile is spotless and pristine. The credit card issuers have never refused an increase due to anything in my credit reports...they are perfect. It is always stated to be due to not utilizing enough of the current limits on THAT card.

TU fico08=823 02/27/20
EX fico08=813 02/13/20
EQ fico08=826 03/05/20
EX fico09=821 03/04/20
EQ fico bankcard08=849 02/25/20
Message 28 of 33
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Valued Contributor

Re: Jumped from the garden for this


@HighAchiever wrote:

Correct me if I am misunderstanding, but doesn't reporting a balance have more to do with SL of new cards and not with CLI of the account you have. I thought that they usually take the internal information, a current credit score (at least within 6 months) and then maybe look at your other accounts to see where you are with those limits and utilization. I know it's a little more involved and each creditor is/can be different, but you are discussing CLIs and whether you report a balance or not the creditor knows what you used with them right...   Smiley Indifferent


It also does not have as much to do with whether or not the balance on the existing card reports, it is du to the fact that the highest ever balance is not even 10% of the current credit limit. Now on the credit report it will show highest reported balance for cards from other issuers, and if a lot of the highest ever reported balance is 0, due to PIF before it reports, that will lookk like the card is not being used. On the existing card with them, they know you have used it but just paid it before it can report. They however know exactly what the highest balance that has ever been used on their card is, and if it is less than 10% of the current credit limit, they will reject the CLI.

TU fico08=823 02/27/20
EX fico08=813 02/13/20
EQ fico08=826 03/05/20
EX fico09=821 03/04/20
EQ fico bankcard08=849 02/25/20
Message 29 of 33
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Established Contributor

Re: Jumped from the garden for this

That's what I assumed... thanks for the detailed explanation!!!   Smiley Happy

“Most people work just hard enough not to get fired and get paid just enough not to quit.”
Take the myFICO Fitness Challenge


Message 30 of 33
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