cancel
Showing results for 
Search instead for 
Did you mean: 

CLIs: Pros and Cons

tag
Kevin86475391
Frequent Contributor

Re: CLIs: Pros and Cons


@kdm31091 wrote:

@longtimelurker wrote:

@RM21 wrote:
I think there are many pros when you aren't someone who has hit many internal limits of your lenders. I think once you get to that point, then things change a bit, as already mentioned.

I am still unconvinced!, except in the very early stages of credit.   Let's say you go from $100K in total CL to $250K, without adding new cards (since we are talking about CLIs)   What are the many pros?   Yes, utilization can be reduced, but, if you can PIF anyway, you can push utilization (almost) as low as like anyway, any anyway most people don't need to maximize their score all the time.

 

And even if you subscribe to the "high limits cause other issuers to give high limits" meme, that would be a circular reason (I only need high limits if high limits are a good thing)

 

Now going from pretty unusable limits ($100 etc CLs) to better ones does make sense, as in the early stages of credit or rebuilding.   But at other points...


I agree here. High limits are nice and all, but realistically, how much of them are you using at any given point? Certainly most people who have 150k in limits aren't using anywhere close to that. A cushion for utilization makes sense to some degree and we all want limits we can use for everyday spending, and maybe the occasional emergency, but other than that I don't see the big need/benefit for tons of huge limits.

 

It is a circular argument. Higher limits may beget higher limits if you subscribe to that, but then, if you have "good enough" limits, does it matter?


I very much agree with these points. I'm fortunate enough to have all the cards I want, Fico 8s over 800, and more than ample credit limits than I need to maintain low utilization. That's good enough. I see no reason to try to push for higher scores or CLIs just for the sake of it.

 

Available credit and credit scores are just a piece of the larger financial picture and while I certainly enjoy participating on the forums, I'd rather focus my personal efforts on optimizing things that will put actual money in my pocket like improving saving and budgeting habits or investment strategies.

 

Message 41 of 54
Gmood1
Super Contributor

Re: CLIs: Pros and Cons

@New2finance Lol...your as bad as me. At least 3 of those are SP cli cards. How in the world did you end up with two Freedoms? You have some nice CC's.

Message 42 of 54
elim
Senior Contributor

Re: CLIs: Pros and Cons

I joined PenFed this month and they gave me a sick offer

 

pf.jpg

 

and i felt all special for a minute and was all like...

 

 

So I called them and said "what I really want is a 10k rewards card" and they gave me one as they said "you qualify for a larger limit".  My CC spend is only 60k a year and I get nervous reading these posts so I don't need the monster limits (or the debt).  Once you can get them, you don't need them, and 10k lets me carry 3k for a month (if needed)... done.

Message 43 of 54
Anonymous
Not applicable

Re: CLIs: Pros and Cons


@Anonymous wrote:
Since everything is electronic it would not surprise me how easy it is to create extra data points for every consumer. they can count how many times you login, count how many times you tried for credit increases, how many times have poked around to see what your balance transfer offers are and so on. Just because it's automatic and not called in does not mean it's not documented. Scary campfire story over.

+1

 

I agree fordguy.

Message 44 of 54
Anonymous
Not applicable

Re: CLIs: Pros and Cons


@longtimelurker wrote:

While staying off the radar has always been part of the MS and bonus churning strategy, it makes sense for many people.  As you can tell from all the "XXX closed my cards/CLDs for no reason" type posts, individuals often are not aware of what a bank may consider risky, and every interaction is an additional opportunity for someone at the bank to care.

 

Also, each interaction with a human (vs automated) has a cost for the bank, so repeated requests (for APR reductions, CLIs etc) could reduce the chances of a positive answer to the question "Is this a profitable customer we wish to keep"

 

 


Good point of view LTL.

Message 45 of 54
Anonymous
Not applicable

Re: CLIs: Pros and Cons

Oh yeah I've got a con to share.

 

Recently had Discover at 39.5K.  Requested CLI but I'm at my internal limit so they increased it $500 to 40k.  It got me to a nice milestone and a nice round number so I was really happy.  

 

BUT

 

Before I always had BT offers 0% (3% fee) and 4.99% with no fee.  Both options were available with direct deposit advance into checking.  Now I only have the 3% fee option and the direct deposit option is gone.  I didn't have any immediate plans to use it, and still don't.. but damn just knowing I had a 39.5K direct deposit line at short term 4.99% was really nice.. and now it's gone.  It might come back but we'll see.

 

So changing or disappearing BT offers could definitely be a con of CLI's.

 

Message 46 of 54
Anonymous
Not applicable

Re: CLIs: Pros and Cons


@irunfromcredit wrote:

@kdm31091 wrote:

The other part of it is that even when your score is slightly changed due to utilization, the impact is temporary with no memory. There's no benefit to maximizing utilization month by month unless you feel it's going to make a difference for an application (and a few points are unlikely to matter much).Of course, you don't to be posting super high utilization, but other than that, manipulating it is more just something people enjoy doing vs something that is necessary IMO


I gave up trying to "optimize" my score and just let all my balances report and just PIF.  My scores fluctuate between 740-760, and in the big scheme of things I don't think it will make a major difference, especially since I am not seeking anything significant like a mortgage right now.


Exactly! For me, it takes a lot of effort and energy to micromanage balances, scores, and credit profiles on a monthly basis. I would rather be doing something else. 

 

This is a good thread and I'm enjoying reading it. Thanks OP!Smiley Happy

Message 47 of 54
Anonymous
Not applicable

Re: CLIs: Pros and Cons


@Gmood1 wrote:

@Anonymous Lol...your as bad as me. At least 3 of those are SP cli cards. How in the world did you end up with two Freedoms? You have some nice CC's.


I applied for FU (4/24)... then 2 more... then  Freedom (7/24) before any of the new accounts posted so I snuck by Chase's 5/24.  I am sort of wondering what Chase will do... so I am going to lay low for a few months. hah!

Message 48 of 54
Anonymous
Not applicable

Re: CLIs: Pros and Cons


@Anonymous wrote:

Oh yeah I've got a con to share.

 

Recently had Discover at 39.5K.  Requested CLI but I'm at my internal limit so they increased it $500 to 40k.  It got me to a nice milestone and a nice round number so I was really happy.  

 

BUT

 

Before I always had BT offers 0% (3% fee) and 4.99% with no fee.  Both options were available with direct deposit advance into checking.  Now I only have the 3% fee option and the direct deposit option is gone.  I didn't have any immediate plans to use it, and still don't.. but damn just knowing I had a 39.5K direct deposit line at short term 4.99% was really nice.. and now it's gone.  It might come back but we'll see.

 

So changing or disappearing BT offers could definitely be a con of CLI's.

 


I hope it's just a temporary set back. Good luck!

Message 49 of 54
Anonymous
Not applicable

Re: CLIs: Pros and Cons


@Anonymous wrote:

@Gmood1 wrote:

@Anonymous Lol...your as bad as me. At least 3 of those are SP cli cards. How in the world did you end up with two Freedoms? You have some nice CC's.


I applied for FU (4/24)... then 2 more... then  Freedom (7/24) before any of the new accounts posted so I snuck by Chase's 5/24.  I am sort of wondering what Chase will do... so I am going to lay low for a few months. hah!


It's definitely time for you to hang out in the garden.

Message 50 of 54
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.