@Mailak wrote:
Hi, guys,
I got this CSP targetted offer for a CLI supposedly without a credit check. I can see people have gotten it over the last couple of months with Freedom. I have always been a little wary of having too much credit in case someone down the road declines me. I was thinking of perhaps getting Freedom at some point as well - would a CLI here fit with that goal?
I, of course, don't need a CLI. It could manage utilization but even that is not neccessary as such. I have let up to 3300 report without thinking much (and that added to a high of some 5500 out of 12500 - balance + new spending). I always PIF anyway. Of course, if I am spending that much, it wouldn't hurt to have the CL be around 15k or 16k - approaching my BCP CL. Any idea how many % increase would go on to still be a SP?
Also, why don't they just do auto CLIs if they really want to give these out as targetted offers?
I think you answered your own question. Some people (perhaps including you) don't want "high" limits. USAA actually makes you sign a form when you enroll saying you are ok with CLIs. So this way, you get the choice to request a limit increase, knowing it won't cost an inquiry. But those who don't want a high limit aren't "forced" to get one.
As an aside, the impact of minor changes in utilization is often overstated on these boards. For the last few months, the only thing that has changed on my MyFico EQ report has been different utilization. With 1 card reporting 9% and all the rest 0, my score was 798. With 1 card reporting >20%, all others 0, it dropped to 794. With 3 cards reporting balances, 1 >20%, it was 788. None of those scores are significantly different and none would result in different loan terms. From what I've read, auto loan weighted ficos have even less impact from cc utlization. I could see why someone just starting out, or on the border of a mortgage threshold (650, 720, 760, etc.) or someone with all low limits might focus on utilization, once you get to limits like the OP has, with otherwise good credit, utilization really isn't worth sweating.
If the OP is uncomfortable with a higher limit, he should shred the offer and move on. In the long term, the impact either way is close to zero. Do what feels right. But if you do accept the offer, it certainly won't hurt your chances with a freedom. This is Chase. If they deny your freedom, you can recon and offer to pull some of your CSP credit over to the freedom. So you would actually be better positioned for your freedom later.
In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
