How Do I Increase My CL on Two Cards? [student]

[Anonymous]

Hi all!

This is my first post and I have to say...I think I must have stumbled on to the greatest site to help my credit in the past few days. Haha. 

I am a student at Cal, and as you can imagine, my credit score is not that high (737 - CreditKarma). Currently, I have a BoA credit card (that I do not use at all, but still have a balance on) and a Citi Platinum U card that I use for all my day-to-day purchases.

I recently asked for a credit limit increase on the latter card because I heard from various places it is not good to spend over 15-20% of my CL of the card. Since I live in an apartment and I pay for the expenses (mostly to get the rewards!), I spend about 25% of my credit limit. Currently, I have a $4000 CL, and I spend about $1200 a month. Stupidly, I asked for a $15000 CL because the CSR told me that it wouldn't matter what I asked for because they would just give me the max about that they think is good for me. Obviously, I was shot down =[, but they did give me a small $1500 increase on my CL. This affects my credit score because they pulled my files right?

I also recently applied for the Schwab Invest First CC, and I was approved after they said they would review it further. I want to start using this card more because I think the benefits might be better than the Citi U card (though I'm not too sure - can anyone give me feedback on this?). However, the CL on that one is $800, and I am not sure if they have 0% intro APR. Anyway, is there a way I might increase this CL? I'd love to switch over to this card for day-to-day use, and use the citicard for restaurants.

I know I'm asking a lot of questions, and I hope people can answer one or more of them! 

Thanks so much!

UncleJ

[BungalowMo]

First off...welcome to the forums!!  Yes, you have found the best place to help with your credit issues & questions!  Believe me!!!

Right now...what are your credit limits and what are the balances?  Ideally, you do not want to keep balances on any of these cards except one.  First, because you never want to pay interest...ever!  Second, your FICO scores LOVE low or no debt!  Overall, you want to have something like 5 to 7% of your available credit limits posting.  For instance...total credit limits....1k.....show no more than $70. balance.

To receive a higher CL, pay down what you owe first!  That is the key.  If they see a card nearly maxed out...that's a sign of irresponsibility, and it's nearly certain you'll be shot down.

Next...Credit Karma is ok...kind of "fun" I guess, but that is NOT a FICO score.  Those can only be purchased on the 3 links in my signature block.   And...you cannot purchase an Experian FICO anywhere.  If you're trying for a mortgage, your loan officer can pull a real EX FICO. 

You will see a ton of abbreviations on this site....the link in my sig will tell you what they all mean.

Lastly, for now, if you're not aware of this...by LAW, you're entitled to one FREE credit report from each of the 3 CRA's once per year.  That free rport link is also in my sig.

I must also add.....all those links were snagged from the wonderful folks here on the site & I like to keep them handy for new folks such as yourself!!  I had nothing to do with any of their amazingly wonderful content! 

Mo

[Anonymous]

Hey BungalowMo,

Thanks for the information! Looks like credit karma is crap? I'll update my FICO score using your link soon.

Right now, I think for my BoA account, I have a CL of 1500, and a balance of 270. For my Citi, I have a CL of 5500 (now), and a balance of ~1000 consistently. Should I be spreading this money around on my other card now, so they all have a balance of 10% of the CLs of my card? Or do you mean that I should have no debt on all my cards, and have one card with 10% of my total CL?

I always pay my CCs on time, and have not asked for a CLI until now.

[Anonymous]

Looks like from the freecreditreport, I've already got my credit reports...ugh. I didn't save them nor do I remember doing that.

[BungalowMo]

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@Anonymous wrote:

Hey BungalowMo,

Thanks for the information! Looks like credit karma is crap? I'll update my FICO score using your link soon.

Right now, I think for my BoA account, I have a CL of 1500, and a balance of 270. For my Citi, I have a CL of 5500 (now), and a balance of ~1000 consistently. Should I be spreading this money around on my other card now, so they all have a balance of 10% of the CLs of my card? Or do you mean that I should have no debt on all my cards, and have one card with 10% of my total CL?

I always pay my CCs on time, and have not asked for a CLI until now.

---

Yes...that is what I meant.  2 cards should show $0 & one should be under 10% of the total of all 3.  I do realize it's not always poissible to have $0.  Sometimes stuff happens & you just have to use it to pay things & can't always pay things off in full every month.  Been there & could easily be there again!  Life happens. 

This is a really great forum & SO many supportive people...like a big group of friends rooting you on to get to your goals!

 

Mo

Message Edited by BungalowMo on 10-05-2009 07:41 PM

[BungalowMo]

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@Anonymous wrote:
Looks like from the freecreditreport, I've already got my credit reports...ugh. I didn't save them nor do I remember doing that.

---

"freecreditreport" is NOT the same as in my link.

 personally, I don't use them, above,,,,

 

Also...check your PM's.  I sent you a great link!

[Anonymous]

UncleJ, is your "~ $1000 consistently" Citi balance carried over from month-to-month, or are you paying the statement balance in full each month, and then charging another $1000 to the card?  It makes a difference.

If you're NOT paying the balance in full every month, your "rewards" are an illusion, and are more than off-set by the interest being paid on the balance.

Increasing your CLs is NOT the same as paying down your debt to reduce utilization.  That's an illusion, too.  Your scores may go up, but so does your debt.

If you are unsure of the terms of any credit product, you should not be either app'ing for it or using it.

Please slow down and take a look at your finances before you get into trouble.  FICO won't pay your bills. 

After February 2010, unless you are already at least 21, you won't be able to get a credit card without proving financial responsibility, or providing a repayment guarantor (co-signer).  This provision of the "reforms" is about the only provision I think is warranted, as many credit difficulties begin in the college years when credit cards are placed into the hands of students who don't really understand all the ramifications of utilizing them.

If it sounds as if I'm trying to throw cold water on your credit plans, I am.  I want you to know how to swim before you go into the deep end of the pool.

Welcome to the forums!

Peace!

[Anonymous]

Thanks Uborrow,

I pay off my cards fully and then charge another $1000. I pay for the ultilities as well as the grocery bills for my apartment filled with guys. We eat a lot =P. 

I was looking into investing with Charles Schwab and the card had pretty good reviews on other sites, so I thought I might as well go for it. 

Does this mean it doesn't matter how much I charge as long as I pay it off every month?

In regards for the Feb. 2010 law, how can sone prove financial responsibility as a student if they do not have an account to begin with?

Oh, and I appreciate your information, I don't think of it as throwing cold water on my plans. I'm here to learn!

[Anonymous]

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@Anonymous wrote:

Thanks Uborrow,

I pay off my cards fully and then charge another $1000. I pay for the ultilities as well as the grocery bills for my apartment filled with guys. We eat a lot =P. 

I was looking into investing with Charles Schwab and the card had pretty good reviews on other sites, so I thought I might as well go for it. The Schwab card is a very good card.

Does this mean it doesn't matter how much I charge as long as I pay it off every month? If you PIF in a manner that the card reports $0 balance to the CRB's you will have a higher FICO score.

In regards for the Feb. 2010 law, how can sone prove financial responsibility as a student if they do not have an account to begin with? By substantiating your income. 

Oh, and I appreciate your information, I don't think of it as throwing cold water on my plans. I'm here to learn!

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[Anonymous]

THANK YOU, UncleJ, for the clarification and for your attitude regarding my response. 

CreditWhereCreditIsDue addressed your additional questions in the above post, but I'd like to add info about the Citi card.  I'm not familiar with the Platinum U product, but Citi is generally considered to be generous with credit limit increases on a regular basis (usually every 90 days), and in many cases without a hard inquiry on your credit report.  You can find further details on threads throughout this forum on this.

Citi LIKES frequent usage and rewards it.  Citi also is the issuer for many store cards, and if you treat Citi right, they'll respond in kind.  Something to think about for the long haul.

Make sure to use each of your cards every two - three months, even if it's just for a small purchase.  You'll want to keep them active, and not risk cancellation for non-use.

If you've got 3 cards now, for the optimum FICO score, two of those should have 0 REPORTED balance, and the remaining card some small REPORTED balance of less than either 1% or 9% (it's arguable which generates better scores, I believe, but it is indisputable that zeros across the board DROP your score).  And that doesn't mean you'll have to carry a balance, either.  Let one card report a balance, and then pay it off in full before the due date.

It sounds like you're on the right path, UncleJ.  Keep up the good work, and don't let your roomies eat up all the pizza!

Later!