I recently applied for a card for a local photographic store (Calumet) to buy some gear for my business. i figured the gear would be $2000-$2500, so I requested a CL of $3000.
I had a BK7 discharged in June of 2004, but have not had any late payments since then, and keep the util on my two other cards (WaMu and US Air, each with lines of $2500) at 5-7%. My most current WaMu BankCard score is 716.
I applied online, and the online system came back "approved for $300" CL. Well, there is really no point to having an account at this particular store with a $300 CL, as anything you'd buy there is going to be at least $500, and usually over $1000. Plus, if you go over limit, you're faced with large fees for doing so (which would negatively impact my score, yes?).
When I got the card in the mail today, I called (GE Money Bank) to ask if this was, somehow a mistake, or if I could get them to review it for the CL I requested. The Indian operator said in a VERY thick accent "your account is too new to be granted a CLI." I asked her to repeat it. She did...and then hung up.
SO...what do I do? Close it? Keep it active, but zero bal? Go in to Calumet every month and buy something for $15 (WHAT, I don't know) that gets me 5% util on it? With only two revolving TLs open, I guess I could use the positive history...but these low-limit cards are NEVER likely to increase to reasonable limits ($5K would be what I would call "reasonable"), are they?
I know there is a negative impact on closing accounts...but is there some kind of "buyers remorse" period where it will not affect my score? I already took a four-point hit for the inquiry.
It would be way more beneficial to have a rewards card.. perhaps a visa with low intro apr than a GEMB store card... I am very unimpressed with them lately...
I recently received a Dillards with a $200 CL with a 730 clean FICO, nice income and 1% UTL... it was BY FAR my lowest CL... I called and went through a 30 minute "Financial Review"... asked in depth questions about money in the bank, job, rent etc... (all very good) and she came back and said no... it stays at $200!! 2% of my highest CL...
They are in trouble and many who don't deserve it pay the price... Maybe it is better to just find out now rather than getting a decent limit and having the CLD you you unexpectedly in the future... which looks worse...
I closed it... I accept that it will be there on my report for 10 years at $200 but score did not take any hit..