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Automatic Credit Limit Increase

dvroberts81
Regular Contributor

Automatic Credit Limit Increase

I am just wondering, what is a specific criteria that banks are looking for in order to qualify for an automatic credit limit increase? Do they base their decision on the payment history only with them or do they look at your entire file?

 

 I had a single credit card charge off through Wachovia. Bank of America has kept me at $700 limit for almost 3 years and USAA at 1k for 3 years as well. I asked both banks and USAA rep simply didnt know and Bank of America told me that I have to call in and ask. I find this very untrue as both of my parents constantly get limit increase every 3-6 months depending on the bank.  For about a year when I was 18 all of my credit cards were constantly overdrawn as I was living on my own and I had to take out a cash advance to buy a used (very,very used) car. I have been late  twice on both cards 30 days but that was almost two years ago. I do carry a rather high balance but I never overdraft anymore and I always make more then a minimum payment. 

09/2008-515
10/2008-522
11/2008-540

Single charge off, Wachovia won't PFD.
New Auto Loan at 10.9% w/ Ford Credit
Message 1 of 9
8 REPLIES 8
jmbfl
Valued Contributor

Re: Automatic Credit Limit Increase


@dvroberts81 wrote:

I am just wondering, what is a specific criteria that banks are looking for in order to qualify for an automatic credit limit increase? Do they base their decision on the payment history only with them or do they look at your entire file?

 

 I had a single credit card charge off through Wachovia. Bank of America has kept me at $700 limit for almost 3 years and USAA at 1k for 3 years as well. I asked both banks and USAA rep simply didnt know and Bank of America told me that I have to call in and ask. I find this very untrue as both of my parents constantly get limit increase every 3-6 months depending on the bank.  For about a year when I was 18 all of my credit cards were constantly overdrawn as I was living on my own and I had to take out a cash advance to buy a used (very,very used) car. I have been late  twice on both cards 30 days but that was almost two years ago. I do carry a rather high balance but I never overdraft anymore and I always make more then a minimum payment. 


 

Each CCC has their own criteria for granting auto-CLI. Auto CLI's are arbitrated by internal computer systems, hence "auto". No one here knows exactly what they are and it is very doubtful that an issuer's rep can/will tell you what will/will not spur an auto CLI. The reasons I have highlighted above and your low FICO scoresare likely the reason why you are not likely to be a candidate for an auto-CLI. Do what you can to get your score up and the baddies off your CBR's and that might change.

Message 2 of 9
FretlessMayhem
Senior Contributor

Re: Automatic Credit Limit Increase


@jmbfl wrote:

Each CCC has their own criteria for granting auto-CLI. Auto CLI's are arbitrated by internal computer systems, hence "auto". No one here knows exactly what they are and it is very doubtful that an issuer's rep can/will tell you what will/will not spur an auto CLI. The reasons I have highlighted above and your low FICO scoresare likely the reason why you are not likely to be a candidate for an auto-CLI. Do what you can to get your score up and the baddies off your CBR's and that might change.


 

I agree 100 percent. 

Here we go again...
Message 3 of 9
tonnie39
Regular Contributor

Re: Automatic Credit Limit Increase

I'm not certain what criteria is needed to qualify for auto CLI but maybe this will steer you in the right direction:

 

A friend of mine called the backdoor number at BofA to request a CLI because he hadn't gotten an auto CLI. He spoke with a credit analyst who told him to pay off 2 electric bills and a cellular bill that was in collections first. Once those accounts are paid, he can call back and get a CLI. She also said that auto CLI may resume within a few months or on his next annual review-whichever comes first. His FICO score was 563 at the time of the call. I should add that he has a banking relationship with BofA as well.

Message 4 of 9
Mike14
Established Contributor

Re: Automatic Credit Limit Increase

It's probably a good idea to ask every few months, either on the phone, or online.  I opened a Citibank card iSept 06 and as of March 08, the CL was $4.8K.  In 2008 alone, I got CLI's up to $10.8K.

 

I also have a BoA card, opened in March 02.  I never asked for a CLI and they did regularly grant them, but here is a recent timeline of my CL:

 

Nov 06:  $10.5K

Dec 06:  $11.1K ($600 CLI)

Mar 07:  $11.7K ($600 CLI)

Jun 07:  $12.3K ($600 CLI)

Sept 07: $13K  ($700 CLI)

 

I stopped using the card nearly completely and got no more CLIs.  Then in October, I filled out their CLI form online.  I forget what I asked for (probably $25K) but now the CL is $18.1K, meaning they gave me a whopping $5.1K just for asking!

 

One more Citibank story: opened the account in Oct 05.  As of Feb 07, the CL was $3.06K.  Feb 08, it was at $6.56K.  Now it's at $15.06K!

 

I don't know what they look for, but it pays to ask for a CLI every so often!  None of these CLIs resulted in a hard pull (now, Chase's CLI requests ALWAYS result in a hard pull!).

Message Edited by Mike14 on 12-12-2008 09:10 PM
Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Message 5 of 9
Mike14
Established Contributor

Re: Automatic Credit Limit Increase

Oh yeah, I opened a Discover card in April 07 with a CL of $1K.  In January 08, they gave me an auto CLI of $500.  In September, I called and asked for a CLI, and the gave me an additional $3K!  (Again, no hard pull)
Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Message 6 of 9
hayhayday
Regular Contributor

Re: Automatic Credit Limit Increase

What Util % do you have? If you are under 70%, i would just request a cli online from bofa since its a soft pull anyway.
Message 7 of 9
jmbfl
Valued Contributor

Re: Automatic Credit Limit Increase


@hayhayday wrote:
What Util % do you have? If you are under 70%, i would just request a cli online from bofa since its a soft pull anyway.

 

Why do you want to send someone with a 540 FICO score to BofA to request a CLI? Do you really think that is going to prove fruitful? He also has high UTIL and reporting baddies and has been late. This is not a recipe for success.
Message 8 of 9
hayhayday
Regular Contributor

Re: Automatic Credit Limit Increase

well seeing as he has 2 years good history and only one co i though his util would likley be 100%+ therefore getting it down to 50-70% would likely put scores into the 600's
Message 9 of 9
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