Credit line increase question

[Anonymous]

Okay I’m wondering if anyone can tell me, when your trying to get a cli is it better to run up the card a lot every month or is it better to keep the bill relatively low

[Anonymous]

I know Chase likes heavy use first....Discover is becoming like that too....

[Anonymous]

Heavy use but also heavy payments.  They want you to use them, but on many cards if you roll over a large utilization (cap one is an example) they can and will deny you based on "recent account balances too high"

Happened to my girlfriend two months ago when she posted a 70% util on a 500 limit card

Straight from her denial letter PDF on her account:

=====

Dear xxxxxxxxxxx,

You recently requested a credit line increase for your Capital One

®

account. Unfortunately, your

account isn't eligible right now. We know this isn't the answer you were hoping for and we want to

help you understand why:

·

Recent use of this account's existing credit line has been too high

========

But for the most part, use a lot and PIF or leave just a small balance seems to be the rule.  Also a history of nothing but minimum payments may not be in your favor either.  Double or even triple the minimum is probably more solid.

[Anonymous]

I always use my cards and pay them off before the report....I have two cards I use as balance transfer cards the other I pay off including Cap one. But I know for a fact Chase likes havy use before they will give you an auto CLI....

[Anonymous]

I never carry a balance over a billing cycle. Good way to get sucked into a pit

[Anonymous]

I leave a 20-30 dollar balance (whatever minimum payment amount is) on 1-2 cards each cycle besides my primary spender

That way they constantly report and are up to date.  Then I pay them off the next month and pick 1-2 different cards to carry a small balance and so on.

[HeavenOhio]

Keep in mind that "carry" a balance means to not pay the full statement amount, i.e. you pay interest unless you're in a 0% interest period.

You can "post," "print," or "report" a balance without carrying one. The balance would come from new charges made during the current statement period.

Back to the original question, preferences seem to vary from lender to lender, but I think the biggies are to use the card and pay in full. I personally wouldn't ask for a CLI if either my current balance or my previous statement balance were high. But some might come up with some reasonable counterpoints to that.

[Loquat]

In my opinion, there isn't a set-in-stone way of increasing your credit limit.  I would think that one would have a better argument for an increase if they were utilizing the limit they currently have...at least you have a basis for wanting and needing more.  Utilizing 1-2% of your given limit may not be enough to justify and increase to a computer algorithm or even a human.  

I know many would say, if I had more, I'd use more.  But the same argument could be said from the other side of, if you use more, we'd give you more.  A never ending battle.

There are some lenders (Synchrony) where their increases are more tied to score rather than use.  Lenders of such are few and far between...especially now as it seems as though some are really tighening up their wallet.  

I would suggest using your card in a manner which would justify a need for an increase.  I know some would suggest that carrying a balance would be a good idea but in my mind, I don't believe or can advocate paying interest for the sake of an increase.  But then again, that's just my mindset.  

Best of luck to you.

[Anonymous]

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@Anonymous wrote:
I never carry a balance over a billing cycle. Good way to get sucked into a pit

---

stuff happens! washer goes out ect! ideally you don't want to keep a balance but sometimes like in my case a lot of stuff breaks at the same time....thank God for 0%. most of the big banks want to see heavy usage....Period! the only times I was approved by citi bank for a CLI was when I put a lot on the card then paid it a few months in a row.

[Anonymous]

I think a lot of it depends on the lender. I was at over 80% utilization on my Limitless when I requested a CLI because I wasn't really thinking of how utilization may have factored into the decision. End result - they more than tripled my limit. I always PIF and may have gotten more if I had paid prior to the CLI request, but it shows that there's not always a specific rhyme or reason.