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Best utilization ratio for faster auto CLI?

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vwgrrc
Regular Contributor

Best utilization ratio for faster auto CLI?

Hi guys, 

 

I want my Chase Freedom get a lucky auto CLI after 6 months as many ppl got for theirs. I was confused by the proper approach described by different sites. Here're 2 common opinions:

 

1. Use the card heavily (60%+) and always pay it down to 10% BEFORE closing date.

2. Use the card heavily (60%+) and pay if down to 10% AFTER closing date for earlier months. Then pay it down to 10% BEFORE closing date for the 6th month.

 

So which one is correct? I know 30%+ should be no good for my credit score. But is this talking about long term or short term? I don't care if it only has short term impact...

Is that a good way to show my bank that I need more credit by showing high balance on statement?

More tricks on getting auto CLI plz?

 

Thanks. Any advice would help!

Message 1 of 19
18 REPLIES 18
red259
Super Contributor

Re: Best utilization ratio for faster auto CLI?

I have been using my card heavily and PIF right before the statement date so a zero balance reports to CRAs as I show a small balance on my other CC instead. I never thought this would impact my chance at an auto CLI with my Freedom, since I assumed Chase can see all my card activity regardless of the fact I pay it off way early. For example on a 3k limit in a month I may run up 1k in the first two weeks, then pay it down to zero then run up another 2k in the second two weeks and pay it down to zero before statement closes. Wouldn't Chase just see me using the card heavily and PIF by looking at their own records? Should I just run the balance up to the full 3k and then pay off before statement date all at once?

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 2 of 19
CEOriginal
Contributor

Re: Best utilization ratio for faster auto CLI?

Before I knew any better, I would pay $50 each month on my Cap1 card. It started at $300 and stayed there for a year. I didn't know anything about auto CLI.. I would just charge up to about $250, then pay $50 each month until it got down to about $100.. then charge it back up.

 

Apparently Cap1 liked that, because I got an auto CLI up to $1,800 (the highest I've seem from this site), which coincidentally led me to myFico because I wanted to learn more.

 

The point I'm trying to make is that I don't think it's an exact science. Each lender is different. Each card is different. Each person is different. However, I would think that if you PIF, Chase wouldn't see activity post. So, if I were a betting man, I'd put my money on option 2.



Scores as of 7/28/13: EX.683   TU.688   EQ.???
Message 3 of 19
vwgrrc
Regular Contributor

Re: Best utilization ratio for faster auto CLI?


@CEOriginal wrote:

Before I knew any better, I would pay $50 each month on my Cap1 card. It started at $300 and stayed there for a year. I didn't know anything about auto CLI.. I would just charge up to about $250, then pay $50 each month until it got down to about $100.. then charge it back up.

 

Apparently Cap1 liked that, because I got an auto CLI up to $1,800 (the highest I've seem from this site), which coincidentally led me to myFico because I wanted to learn more.

 

The point I'm trying to make is that I don't think it's an exact science. Each lender is different. Each card is different. Each person is different. However, I would think that if you PIF, Chase wouldn't see activity post. So, if I were a betting man, I'd put my money on option 2.


You charged 250 on you card but pay only 50 each month. That means you carry the balance thru due date? Don't you have to pay interest for that part? Isn't it a bad record/delinquency? Wondering~

Message 4 of 19
Stralem
Established Contributor

Re: Best utilization ratio for faster auto CLI?

He has to pay interest, but that's not necessarily a bad thing. After all, floating balances are what credit cards are for; charge cards are where paying off the full balance each month is a must.

I Have Way Too Many of These.

American Express - No CLI or Appreciation Gift in 7 Years

Citibank - Handing Out Credit Limits Like Candy

Chase - Surprisingly, Still Tolerating My Credit-Chasing Ways

Bank of America - My Newest Bae.

Everyone Else.
Message 5 of 19
Laugh
Frequent Contributor

Re: Best utilization ratio for faster auto CLI?

I think the best way to show that a credit limit increase is needed, is to charge the card close to the limit and pay in full. Rinse and repeat. I always let about 10-20% report on my freedom.

 

If an auto increase doesn't occur, take the HP. The analyst will take into consideration the amount you spend and pay every month. 

 

 EDIT: Utilization is short term. Your score will fluctuate depending on the amount your statements report. Don't worry about it. If you need to use your credit, let only 1 card report 1-9% and you'll be good.

Cards: CSP 6k, Chase Freedom 6k, BCP 7.5k, Sallie Mae 8.9k, Discover 5k, BOFA Better Rewards 3.8k
Message 6 of 19
CEOriginal
Contributor

Re: Best utilization ratio for faster auto CLI?


@vwgrrc wrote:

@CEOriginal wrote:

Before I knew any better, I would pay $50 each month on my Cap1 card. It started at $300 and stayed there for a year. I didn't know anything about auto CLI.. I would just charge up to about $250, then pay $50 each month until it got down to about $100.. then charge it back up.

 

Apparently Cap1 liked that, because I got an auto CLI up to $1,800 (the highest I've seem from this site), which coincidentally led me to myFico because I wanted to learn more.

 

The point I'm trying to make is that I don't think it's an exact science. Each lender is different. Each card is different. Each person is different. However, I would think that if you PIF, Chase wouldn't see activity post. So, if I were a betting man, I'd put my money on option 2.


You charged 250 on you card but pay only 50 each month. That means you carry the balance thru due date? Don't you have to pay interest for that part? Isn't it a bad record/delinquency? Wondering~


No it's not a deregatory mark if you carry a balance, just so long that you make at least your minimum balance payment by the due date.

 

Of course, this method is not recommended because you do pay interest. But I was paying about $1.20 in interest every month, and in hindsight, that helped me get a $1,800 CL. So it was worth it... TO ME. My main point is that everyone's situation is different. Over the year I paid Cap1 about $15 in interest, and they gave me a $1,500 CLI. Of course, YMMV. That's just my personal experience with auto CLI's. 



Scores as of 7/28/13: EX.683   TU.688   EQ.???
Message 7 of 19
navigatethis12
Valued Contributor

Re: Best utilization ratio for faster auto CLI?

Chase is very random with automated increases. It very rarely happens and when it does it is usually for a very small amount. I got one for $300 back in Januray, but some is better than none. They do like to see usuage, but do not lke new accounts, so just don't open a lot of cards. You don't have to let the balance report to show that you need more credit; I always pay before the statement closes and have not had a problem.

Message 8 of 19
GatorGuy
Valued Contributor

Re: Best utilization ratio for faster auto CLI?

There is no formula with Chase. I used my card maybe $200 a month and PIF and they gave me an auto increase of $5k.

Message 9 of 19
navigatethis12
Valued Contributor

Re: Best utilization ratio for faster auto CLI?


@GatorGuy wrote:

There is no formula with Chase. I used my card maybe $200 a month and PIF and they gave me an auto increase of $5k.


You're definitely one of the lucky ones. Some people have had their card for years and never received anything.

Message 10 of 19
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