Any idea why some lenders seem to be more generous with CLI than others?

[adozark]

Hello All,

I have 5 cards and have used the CLI buttons on 2 and have been denied both times, I recently saw in a thread that Care credit had an automated CLI prompt and thought I would try since I had always been diligent on paying my Care credit and have a $0 balance. I first asked for 4K and and was instantly approved, I got a little greedy and tried again for 9k, and was approved.

Yet my GE banana republic card denied me and I only have a 1,200 limit and 40% utilization (though I pay it off every month, so no carried balance). I did call the recon line and was approved for 3k but they really took their time and spent ~10 minutes reviewing my CR. My Apple Barclay card had denied me in the past as well. (I didn't know about the recon lines back then though.)

My Ex Fico is 663, sure it's not in the 700's but it's not terrible. 

So is Care Credit just very lenient with credit (even though they're still just GE)?

My AAoA is 4 years, so I doubt that is the issue.

Thanks in advance, this forum has taught me so much and motivated me to get the best FICO I can.

[gdale6]

The GE backdoor can be very lienient on CLI's its not uncommon to hear of 10-25K limits on store cards with them. If you have any baddies on your report work on them to get that FICO up, if you dont have any baddies the issue could be too much util reporting to the CRA, to correct that pay off all cards prior to stmt cut and let 1 card report with 1-9% of its CL used to maximize your FICO score.

[user5387]

If there are issues with derogatories or utilization on your reports, you might look at those.

Beyond that, if you want generous CLs, then I'd look at a CU, or else do a lot of research on which lenders offer them.

CUs can be generous because they're non-profit, and typically don't offer rewards, and exist to help their members.

[adozark]

I don't have any baddies, and my utilization is around 40%, and I am paying it down pretty rapidly at this point.

I'm not necessarily looking for a lot more credit, I just noticed that some CCC's tend to be fine with extending me credit, and others I have to wrestle to get a small amount more. I'm just trying to get my limits high enought that a couple of charges doesn't have a big affect my FICO.  

[revvystoke]

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@adozark wrote:

I'm not necessarily looking for a lot more credit, I just noticed that some CCC's tend to be fine with extending me credit, and others I have to wrestle to get a small amount more. I'm just trying to get my limits high enought that a couple of charges doesn't ruin my FICO.  

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They each have different lending standards, they are in the business to make money and it makes no sense to lend out money to individuals they deem risky. Each company uses risk models that filter out individuals using different standards. Chase and Amex are very lenient in my case, but Citi seems to consider me a risk so I have never had much luck with instant approvals with them.

If your looking at improving your score, just pay in full. Treat them like charge cards and pay all your charges in full before each payment is due and you shouldn't have a problem 6-8 months from now if you intend to apply for higher limit cards, time is on your side and once you get a little more age with with that higher care credit limit (congrats) then I don't see why you wouldn't qualify for a card through one of the big banks or credit unions. 

[efranklin23]

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@revvystoke wrote:

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@adozark wrote:

I'm not necessarily looking for a lot more credit, I just noticed that some CCC's tend to be fine with extending me credit, and others I have to wrestle to get a small amount more. I'm just trying to get my limits high enought that a couple of charges doesn't ruin my FICO.  

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They each have different lending standards, they are in the business to make money and it makes no sense to lend out money to individuals they deem risky. Each company uses risk models that filter out individuals using different standards. Chase and Amex are very lenient in my case, but Citi seems to consider me a risk so I have never had much luck with instant approvals with them.

If your looking at improving your score, just pay in full. Treat them like charge cards and pay all your charges in full before each payment is due and you shouldn't have a problem 6-8 months from now if you intend to apply for higher limit cards, time is on your side and once you get a little more age with with that higher care credit limit (congrats) then I don't see why you wouldn't qualify for a card through one of the big banks or credit unions. 

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+1 Each lender have different criteria they adhere to when it comes to risk. Some will be more conservative (Discover & PenFed) and some will be lenient (GE & AMEX)

[adozark]

Thank you guys, you have been very helpful. 

[CreditMagic7]

@ user5387

All the above rings true. CU's are infinitely more accommodating where concerns cli's as opposed to the stiff necked so called prime lenders who are constrained to adhering to their respective policies no matter how well proportioned you view your own credit history.

I'm subscribed to the belief now after having gotten my feet wet in this well that all lenders are disposed to meet a new customer quota hence fairly easy to obtain brand new approvals only to be met thereafter by much more stringent scrutiny (recons) and therein customer RISK escalates with higher percentage of Denials when forced to swallow a negative hit on a wasted Inquiry, increasing the consumer/customer's RISK of future denials populating their reports.

Those unfortunate negative decisions results in delays and raise customer concerns even if the result might prove completely arbitrary.

But then they wield the carrot irregardless.

[lhcole77]

I've read great success stories of CLIs when overall UTL is 19% or less.