No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
@Klesko wrote:
@kdm31091 wrote:I think you need to stop thinking that new cards are the solution here. With that high of utilization, no major bank is likely to approve a new card, much less with a 5k+ limit. If you're already in that much debt, no bank is going to say "sure, here's a 5k limit that you can max out". I'm not saying that to be rude, just providing the banks perspective.
I would just focus on getting the utilization way down before applying for anything else. Under 30% is the generally suggested maximum but lower is better. It can never hurt to have it be lower when applying for things.
All the current cards are in 0% balance transfer. They are all coming off the 0% within 3-5 months. I am just looking to roll it over into another 0% if possible. I could roll it over to my cards which are almost empty which is what I will most likley end up doing.
Whether you are paying interest or not is irrelevant to the banks. The utilization is high and that's what matters. I understand what you want to do, but IMO, people should focus more on getting rid of their debt and less on shuffling it around.
Don't consider just approval. That said, revolving utilization has a significant impact and will affect one's ability to get approvals. Not only that, but high revolving utilization will constrict the limit that one qualifies for.
If you want to be approved and you want high limits, low APR's etc then get your revolving utilization down. Don't just assume that all your problems will be solved by finding the "right" creditor and product. One's credit profile determines what one is approved for and what one qualifies for.
I've posted this many times so the regulars are probably tired of hearing it but I'll post it again as it is an example relevant to this discussion. Granted, it's only anecdotal but it is illustrative of the impact of revolving utilization. Back before I educated myself I had a bit of credit card debt and I figured that getting a card with a 0% offer would help so I applied for the Chase Slate. I was approved but for only $2,000. I had much more credit card debt than that so the $2,000 limit was useless and I closed that card. About 6 months later I was able to drop my revolving utilization from over 60% to under 10%. I forget how much exactly -- it might have been around 6%. Anyway, I apped for a CSP and was instantly approved for $25K. I apped the next day for the UMPE and was also instantl approved for $25K.
I'm not saying that your wife will qualify for such limits when she gets her revolving utilization down. In my case my profile was strong and clean enough aside from revolving utilization that I qualified for those limits. It was the extremely high revolving utilization that led to only getting a $2K limit.
Get her revolving utilization down. Do not rely on quick fixes with credit.
@Klesko wrote:
Any thoughts on what percent I need to get these cards under to allow for new approvals? I know the best would be 30% but if I could not do that then what percent would be acceptable you think?
Approval is a low bar. The lower the better. That's why the advice about optimizing revolving utilization and number of balances exists: only 1 balance reporting as low as possible -- definitely well under 10% -- if trying to eke out points when applying for credit, CLI's etc.
Creditors are not all identical so there isn't a magic % for all creditors where she will sudenly be approved. Get the revovling utilization down first. Get all that revovling debt paid off first. Then worry about applying for new credit. New accounts are the least of your concerns at this point. With revolving utilization that high your priority is avoiding adverse action and paying down those balances as quickly as possible.
@Klesko wrote:All the current cards are in 0% balance transfer.
Does not matter. Look at reports. Note where 0% offers are indicated? It's all about revovling utilization. Get it down first. This is why we say don't count on a new card for BT's if you have high revolving utilization. Even if approved one will get low limits and high APR's which make the new card useless for BT's. Revolving utilization matters regardless of 0% offers. It's not just a matter of scoring. It's a matter of how creditors perceive risk and revolving utilization like that is seen as a major risk. Don't rely on new credit to solve this probem.
@Klesko wrote:
Any thoughts on what percent I need to get these cards under to allow for new approvals? I know the best would be 30% but if I could not do that then what percent would be acceptable you think?
Why do you want a new card for her? She can't even handle the cards she has now. I can suggest synchrony but it isn't guaranteed. However, it doesn't seem like she needs new cards unless she is dying from interest. That is when I can see you trying to get a BT offer from another card, which you didn't mention at all. I assume it is a spending problem. Anyway, I should keep my assumptions to myself because everyone is free to do what they want. You suggest you can pay them off to 30%, so I see the issue is not paying them but gaining more credit to go back to that 90% area you feel comfortable at. GL and I hope you learn more from this forum on how to manage credit because you are not there yet. Well, none of is really, that is why we are here or boredom. I just hope someone can say it straight and wake some people up before they head in the wrong direction.
Edit* Also, this could cause AA from other lenders if they see you seeking credit to cover your utilization and not actually paying down the debt. Cash flow problems as others have mentioned and trigger FR, CLD, Balance chasing, etc.
If she has high limit cards that are maxed out, lenders may think she's having cash flow problems and decline her apps.
I would wait until ut is down to at least 30%, if not 10-15%. CC's look at those and wonder. She has some good cl's now. I'm sure she doesn't want to take bottom line ones. I did on the last store I app'd for since it was a foot in the door for me and I really didn't care since I have more than I need.
I agree with what everyone above has stated. The only move to make at the moment for the person in question is to lower overall utilization. Applying for another card with 60-90% utilization IMO is about the worst possible move this person could make.
@Anonymous wrote:I would wait until ut is down to at least 30%, if not 10-15%. CC's look at those and wonder. She has some good cl's now. I'm sure she doesn't want to take bottom line ones. I did on the last store I app'd for since it was a foot in the door for me and I really didn't care since I have more than I need.
I agree!