Do Credit Limit Increases (CLI's) on existing CC's affect New CC Apps?

[Taurus22]

Looking through the forums, I could not find anything immediately to this question.

If I am wanting to apply for 2 new CC's back-to-back (one for the purpose of BT and the other for the purpose of raising overall CL) if I have recent CLI's on existing cards I own, does this have any affect positively or adversely toward the level of SCL I would receive for the new CC's ?

I did read the AmEx 3X sticky which mentioned that a CL increase on any cards you own would affect the 3x CLI for AmEx specifically, but that made me wonder about the application for new CC's and what, if any, affects it might have.

[Anonymous]

Did you have any 2 particular cards in mind already?

Each CC issuer has their own unique policies.

Generally though if they are from different issuers one won't know about the other until they hit your reports in a month or two.

[Taurus22]

After researching for a couple days I've decided the best for me would be:

1 - Chase Freedom (0% for 15 mths BT and $150 spend bonus I can apply toward the BT) Then 5% categories CB after the BT.  (This would be about a $3000 BT from my Disco)

2 - Barclay Uber Visa - This is simply to increase overall CL and have some nice CB benefits as well. Since I would be working down the BT on the Freedom I want some breathing room in my UT% for my daily use cards.

I currently have the Citi DC card (4,000CL -clean) and the Discover It (8,000CL - 3,300 balance)

I am considering AmEx Blue EveryDay down the road for the 3x CLI, but the card would have no other purpose for me (not really a fan of AmEx) so for now I want to invest in those two Visa's.

So I'm wondering if I should ask Discover and Citi for CLI's before I do the new apps, or would that be detrimental?

Current overall CL: 14,500   DTI:28%

Current UT%: 24%

FICO: 770 average across all

Recent car loan: July 2018

[Anonymous]

I don't think there would be any harm in asking Discover for a CLI. Its a soft pull and you can ask as often as you want. Worst case they say no. Your utilization doesn't look high enough to freak them out. It could help lower your UTIL for your next app too.

[HeavenOhio]

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@Taurus22 wrote:

I did read the AmEx 3X sticky which mentioned that a CL increase on any cards you own would affect the 3x CLI for AmEx specifically, but that made me wonder about the application for new CC's and what, if any, affects it might have.

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That would be any AMEX cards you own, not cards from other banks.

How old is your oldest card? You should make sure it's at least 13 months old before applying for a Chase product.

[Taurus22]

@HeavenOhio

My oldest account was started in 2013. It's my original bank Visa that started as a secured to build credit then flipped to nonsecured after 15 mths. I had zero credit history at that time. 

My current AAoA is 3 yrs due to the recent auto loan this past July.

My Citi and Discover are the youngest accounts (I opened both the same day in Sept. 2015). Have pretty much been gardening since then, building myself up, doing CLI's and APR reductions. Had a 771 score when they pulled for my auto loan. Surprisingly, that really didn't hurt me for too long.....I think it dipped about an average of 12 points and has been rising again since then.

I did have an installment loan between Jan 2017 and Oct 2017. Not sure if that would need to fall in that 13 month range you spoke of, but will be in that range by May anyway when I do the new apps.

[Anonymous]

I would go for SP CLIs on your existing Discover and Citi cards first for two reasons.  One, success will of course lower your utilization, giving yourself a more favorable profile for the new apps.  Two, those slightly higher limits may influence your new app lenders to grant you slightly higher SLs than would otherwise be the case.  Keep in mind if you do get CLIs, they wouldn't be visible to your app-lenders until those new limits report, which could take up to 30 days.

[Taurus22]

@ BrutalBodyShots

Exactly my thinking, as well. I was wanting to lower my UT% before the new apps but I didn't want some strange behind-the-curtain rule to adversely affect it somehow. Which is why I'm doing some research in advance so that I can get the CLI's in March, pay down my Discover to 20% UT from 23% in March as well , so that by May everything would be showing on my profile when I do the 2 new apps.

I'm really hoping I can pull minimum $5,000 SL on both cards, giving me a 10k boost to my overall CL and pull that UT 20% down to about 12%.....this would give me breathing room for the daily use cards.

[PersonalBanker89]

I believe it would only effect you (positively or negatively) if these CLIs are reflected in your current credit report. Have these cards reported after the increase and does it reflect?

If the CLI was on an existing Amex and you apply for another Amex this CLI should be taken into account as its the same company who can see you received an increase. Hope this makes sense and what you are asking

[Taurus22]

@ PersonalBanker89

The last CLI's I had for both cards were in Nov. 2017 (I tend to do these in the same time frame to stay uniform)

I have no idea if they are reported, but they certainly show in my overall total CL.

I would be trying for new CLI's after my March 5 payment on my Disco to lower the UT to 20% first. Give that time to report, so probably shoot for the CLI's around 3/12.  Those would likely show by my April report and would be about 50 days old by the time I app'ed for the 2 new cards. (Approx. May 1 or so)   If all goes well with the apps, then I should have my new cards in time to request the BT by 5/15. If all goes well there, this should transfer by my June reporting and I should owe nothing else to Disco when my 0% promotion ends this June.

If I need to squeeze the timing down a little more, I could always apply for the new cards mid-April to give myself a little more breathing room.