@Anonymous wrote:
@Anonymous wrote:
Lol well that escalated quickly. OP I totally understand your point. I'm in rebuild status so even getting a $250 auto CLI is incredibly exciting to me. I'm also puzzled by those that have so many credit cards and thousands upon thousands of dollars in limits but amazing credit scores so obviously their UTIL is low so why do they need so much? LOL, well maybe because they can. Maybe they think they need it, and maybe they just get satisfaction from getting those CLI's because hey, it's like getting an A on a paper in a class you're already acing or getting another raise at work: it's HARD to obtain and maintain the level of credit worthiness in America it would take to not only get those high limits but also to continue to use credit responsibly enough to maintain that low utilization. In the end, this one forum gets soooo much more traffic than any other subject. I can go all afternoon and no one will post anything on the mortgage threads but this one is always always lit up.
I think the answer to your question is that they can, it makes them feel good in some way, and they are obviously mostly managing it correctly so they aren't seeing hits to their credit. Also, I'll be honest: I think it's a little elitist as well. If someday I can rebuild to be able to manage high limits in a responsible way, after what I've been through with my credit, hey, I'll join the "elite" as wellNo kidding. I wasn't trying to start World War 3 and I think some people are out to get me for trying to spark a convo lol. It's all good.
Out to get you? Maybe we should just all agree. Would that be better. I can tell you this, you have higher limits then me. Why shouldn't i be able to CLI now and then..
@Anonymous wrote:
@axlm wrote:
@Anonymous wrote:
@longtimelurker wrote:While I think they are really overstressed here, having to pay multiple times a month is a good reason for getting a CLI! Financially (and not scorewise) the best strategy is to pay just once, on the due date. Anything else is wasting a key feature of the credit card, the interest free float. And then, having a balance that is only a fairly small part of the CL is OK for scoring too.
I pay multiple times a month because I want to, not necessarily because I must. Why is it financially the best strategy to pay once? If you charge 500 essentially no difference between paying 500 on the due date or paying 250 before it or vice versea.
You missed a key part in there: "best strategy is to pay just once, on the due date". Because you are using the lender's money, interest-free, for longer. Meanwhile your own money is (hopefully) giving you some extra return over that period.
I get this in theory, but in practice? Let's assume geo has a 1500 dollar credit bill from Chase. Most of us are paying our credit cards from our primary checking account I'll assume. If geo pays 1500 on due date or 750 on say the 15th and the due date what is the opportunity cost of that extra 750 in a checking account? How in real terms are people "profiting" by only paying once.
Well, this doesn't apply to me since my spending is not very high, but my Alliant checking account has .65% APY. Regardless, I just think it's a sound mindset to have One can also argue there is no benefit to making multiples payments instead of one lump sum just before statement cut.
Edit: Also, please notice I'm not arguing on the CLI obsession subject, just the benefit of this particular issue.
@mitchblue wrote:
@Anonymous wrote:
@Anonymous wrote:
Lol well that escalated quickly
I think the answer to your question is that they can, it makes them feel good in some way, and they are obviously mostly managing it correctly so they aren't seeing hits to their credit. Also, I'll be honest: I think it's a little elitist as well. If someday I can rebuild to be able to manage high limits in a responsible way, after what I've been through with my credit, hey, I'll join the "elite" as wellNo kidding. I wasn't trying to start World War 3 and I think some people are out to get me for trying to spark a convo lol. It's all good.
Out to get you? Maybe we should just all agree. Would that be better. I can tell you this, you have higher limits then me. Why shouldn't i be able to CLI now and then..
Didn't say we should all agree. Didn't say you shouldn't be able to CLI. Was attempting to have a convo and the passive aggressive nature is bizzare and unwarranted.
@Anonymous wrote:
@mitchblue wrote:
@Anonymous wrote:
@Anonymous wrote:
Lol well that escalated quickly
I think the answer to your question is that they can, it makes them feel good in some way, and they are obviously mostly managing it correctly so they aren't seeing hits to their credit. Also, I'll be honest: I think it's a little elitist as well. If someday I can rebuild to be able to manage high limits in a responsible way, after what I've been through with my credit, hey, I'll join the "elite" as wellNo kidding. I wasn't trying to start World War 3 and I think some people are out to get me for trying to spark a convo lol. It's all good.
Out to get you? Maybe we should just all agree. Would that be better. I can tell you this, you have higher limits then me. Why shouldn't i be able to CLI now and then..
Didn't say we should all agree. Didn't say you shouldn't be able to CLI. Was attempting to have a convo and the passive aggressive nature is bizzare and unwarranted.
I must be confused I thought we were having a conversation. Some agree, some don't, different opinions etc. Seems like a conversation.
This is a very interesting question, and a very interesting thread.
My personal spending is modest relative to most people on here (usually $2k/month), so what works for me might not work for others, but I can tell you what I've found works best for me, at least at this time.
Since I PIF and as I mentioned above my needs are modest, I don't have a real need for super-high credit lines, nor would my income and resources support a huge credit line like many people seem to have on their 'bucket list'. Even if I did get one of those big credit lines (for example, $25k) I wouldn't make use of it; actually, my spending wouldn't change at all. I've lived the revolving debt interest nightmare before, and I don't plan on being there again. My current credit lines don't limit my spending, my own discipline does.
For me, the 'sweet spot' for credit limits is somewhere between $5k and probably around $15k. I give $15k as the 'high' end to pad my utilization for those times I take advantage of 0% APR promotions. For those cards with no promotions (and that probably will never see a promo in the future) $5k is actually plenty for me.
This is a personal preference, but for me paying more than once a month is annoying (especially since I'm paid monthly). That being said, if I had a card with a low credit line that I wanted to use for more than the available credit, I would have no problem with paying multiple times a month... actually, when I was rebuilding, I did so often, but not by choice.
We're all different, and have different needs, incomes, spending, etc. As for credit lines, there's no one-size-fits-all answer, and some people need higher credit lines while some just want them for other reasons (personal goals, bragging rights, etc.)
I know my credit lines wouldn't be sufficient for many, and might be more than some need (if they live under a rock... LOL). This being said, I enjoy reading about how other folks feel about this and learning from the collective experiences of the group.
One final note... now that I have pretty much what I need/want credit-line wise (with two exceptions... BCP and Sam's), I'm looking to be "acknowledged" by my lenders with lower APRs. I guess you can say that APR reductions have become the new CLI for me... 
@Anonymous wrote:
@LadyJEsq wrote:
@Anonymous wrote:It seems as if many people are obsessed with growing their credit limits and this is something I don't quite understand. I'll preface by saying I have solid credit scores and most of my limits are fairly high (avg. around 5,000 with a few over 10,000). I see people asking all the time about getting CLI's, dropping cards because of lack of CLI's, cards not showing them any "love" etc. And I just don't get it? Once you have a decent limit why the obsession over it continuing to grow? I'm not being snarky, just trying to understand. Short of massive purchase shouldn't our CLI's (assuming they aren't insanely low) be pretty irrelevant? I pay off my cards multilple times a month and savvy credit users should be paying in full at the minimum as often as possible each statement cut (minus BT 0% stuff but let's leave that out for now).
Is it people not wanting to pay multiple times in a month? (Don't see why this is a big deal). Is it just wanting to say you can put 25,000 on a card? Especially for those with multiple cards (vast majority of us) it isn't as if you're not going to have enough credit to make certain purchases.
It just seems as if something many people are really obsessed over and I don't get it.
I'll never get how people don't get that with 7 billion people on the planet, we're not all going to have similiar issues. Just because you don't see why paying multiple times on a CC(s) is a big deal, that means no one else should?
I'll echo the poster above that with a higher TCL, maintaining a >10% Util is much easier. Especially for those of us who use CC exclusively for the rewards.
Thread was for discussion not to attempt to act like everyone has the same situation.
I beg to differ, given what I highlighted from your OP. But hey, whatever you say.
Everyone is different and differing opnions are certainly welcome on myFico, if everyone agreed with everyone else there would be no purpose in even having a forum. With that being said just remember that you can disagree but please do so in a respectable manner, thats all we ask. Have a great day all
