Can you ask for a CLI too many times?

[Anonymous]

I've been trying to improve my score. Right now, on MyFico I have a 646 with Equifax, 668 with TU, and a 668 with Experian. I've been reading a lot of articles and forums. And, one of the ways suggested to improve score is to get a CLI on your accounts. So, in the past couple of months I've asked for a CLI 2 times with Discover and 3 times with American Express and Amazon store card twice. The only one that was successful was Amazon Store Card. It went from a 600 dollar limit to 1100.  I've done it so many times because I've seen forum posts where people have requested a CLI multiple times, and the second or third time was successful. I'm getting kind of nervous though, because I don't want this to appear as desperation for credit and become a red flag with the companies I'm with. I'd like to maintain a really good relationship with my credit issuers.

Additionally, I've had a lot of inquiries recently. I'm sitting on 12+, and somewhere around 30+ for the year... This is because I was told that having a lot of accounts helps your score. However, my scores have not changed too much.

I'm 22, and trying to recover from a medical collection. There's 2 other collections appearing on my report that I found out recently I can dispute. One for a ghost medical bill, and another for a Gold's Gym membership that I didn't realize was reporting on there; honestly, I don't even know where it came from. I did go to Gold's Gym when I was like... 17. But, I only went 3 or so times.

I also feel like I have way too many credit cards and accounts now. I'm really looking for ways to get a healthier credit picture, so I don't seem like a risk. I have never missed a payment on anything. And, I keep my utilization between 5% and 9%. I do carrry a balance. But, I've seen different opinions on this. Some say it helps to carry a balance. Some say it's best to pay in full every month.

Right now, accounts are as follows:

Amazon Store Card: 1100 (Recently had my limit upped)

VS Angel: 500 (new, but didn't app for it.)

BOA Better Balance Rewards MC: 2500 (newer - about 2 months old)

Chase Freedom: 2200 (new - about 2 months old)

Amex EveryDay: 3000 (I've attempted to ask for a 3xCLI 3 times in the past month. No success)

Amex BC: 8900

Best Buy Store Card: 3000

Discover: 1000 (One of my oldest accounts, limit has never chaned, asked for a CLI multiple times, no success)

Palmetto Citizens Visa: 200 (First unsecured CC ever, 2 years old, never gotten a limit increase)

And, I've also got an auto loan with a 22000 dollar balance from 26000.

And, because I'm a moron, I tried to apply for a BOA Rewards VIsa last night, because I saw where people were saying it's better than the Better Balance Rewards, and that I should try and get it and then combine the cards. But, it was a no. And, now I have another hard inquiry on my report.

So, questions are as follows:

1. Should I stop asking for CLIs so close together in a time frame?

2. Will this damage my relationship with these banks?

3. Should I go ahead and pay off all my cards?

4. What are some good next steps?

5. What am I doing that is causing my scores to stay in such a sub-par range?

Thanks for the advice in advance. This community seems like a really helpful place. I love reading all the success stores.

[yfan]

What do you mean should you pay off all your cards? Are you saying you have the means to pay the cards but are choosing to carry a balance? Then yes, pay it off!

And yes, stop asking for CLIs for now. Give your new accounts some time to age, and come back around in 6 months or so.

[Anonymous]

See, I get different perspectives on that! Yes, I'm carrying balances on some of my cards. Very small balancces. I have around 200 dollars on the BOA card, 530 on Best Buy, 32 on Discover, and 33 on Amex... Haha. So, should I go ahead and just pay all of them off? After that, do I spend on each account, and then PIF? All of this is so confusing.

So, no more CLI requests? Okay. For some reason, I get so anxious after reading all these articles, so I try and do all these different and excessive things at once. So, just leave everything as is for 6 months?

[jacetx]

Hi Dhar. First off, what are your balances in those cards? If they are high it is unlikely that you will get a CLI since utilization plays a big role in your credit. Also do not apply for any more cards or request more CLI that may end up with a hard pull. Chase, BoA, and Citi always do hard pulls for their customer initiated CLI's 100% of the time. How long have your collections been opened for? They can only report for 7 years on your credit report.

[yfan]

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@Anonymous wrote:

See, I get different perspectives on that! Yes, I'm carrying balances on some of my cards. Very small balancces. I have around 200 dollars on the BOA card, 530 on Best Buy, 32 on Discover, and 33 on Amex... Haha. So, should I go ahead and just pay all of them off? After that, do I spend on each account, and then PIF? All of this is so confusing.

So, no more CLI requests? Okay. For some reason, I get so anxious after reading all these articles, so I try and do all these different and excessive things at once. So, just leave everything as is for 6 months?

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If you are thinking about showing usage, letting a balance report and carrying a balance are not the same things. You can let a balance report and then PIF by the due date. That way, your credit reports show usage but you don't end up paying interest.

Right, leave things alone for 6 months. Use your cards normally, PIF, and build up some history.

[Anonymous]

I keep my total utilization really low, so I have about 19000+ available credit, but I'm only using about 970 dollars, give her take. So, the balances are not astronomical. So, I don't think that's affecting my chances at achieving a CLI.

See, I'm not sure how old the collections accounts are, because I only recently really started to understand how to read a credit report. But, one apparently has been reporting for 10 months - 237 medical bill. And, the other has been reporting for 4 years - 727 Gold's Gym thing... I didn't even realize these things were on there. But, I did initiate a dispute for these accounts I'm totally unware of. And, hopefully they get taken off. Do you think these accounts are what's sinking my score, and having my CLI requests refused?

[yfan]

No, carrying small balances won't hurt your chances of CLI. But why pay a penny in interest if you don't have to?

Credit limits (and its increrases) are a function of income, credit history, and your history with the specific lender. A score alone isn't enough. Lenders are far more inclined to give someone with an established credit file and good payment history an increase even if they have mediocre scores than to someone who just started having credit but has better scores. The only thing that I can counsel is patience. I know this board can make you impatient. But calm down, be patient, and use the credit you have responsibly.

[Themanwhocan]

Read and understand this post. then you will know why having small balances on multiple cards is bad when its time to apply for new credit:   http://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-I-play-the-1-9-Utilization-Game-Please-...

Applying for new credit results in hard pulls, which bring your credit score down for a year (more for recent ones, and even more for multiple recent ones, etc). By applying for new credit, I mean applying for a new credit card or applying for a credit limit increase. Also, actually being successful in obtaining a new credit card also lowers your credit score for new credit (so its a negative to apply, and a negative to succeed). So, you have to spread these things out over time.

You also have to find out the rules for applying for credit increases with each company. generally, don't request a credit increase more often than once every 6 months, unless you know for a fact that a company has a more tolerant policy.

Read the American Express 3X post.  http://ficoforums.myfico.com/t5/Credit-Cards/The-Definitive-Amex-3X-CLI-Guide/m-p/1811071

If your FICO scores are real low, then concentrate on removing the baddies. And let those HP inquiries and new credit cards get some age and they will slowly stop dragging your scores down as well.

[Anonymous]

Themanwhocan - that CL on your AX appears to have increased. Selling out to AX

[Anonymous]

Thank you for the tips! I think I'm just gonna chill out and "garden" for a while, as I've heard people say and suggest. Ha. Hopefully this will dramatically improve my credit picture, as a whole.