How much do I ask for when requesting new CL?

[jschaffer]

When I do a CC app at my credit union, they let me request my initial CL before they even give me my card. Then they review and usually come back with a much lower counter-offer.

Anyhow, is it stupid to ask for $10,000 intentionally so that when they come back with their counter-offer it'll be more like $5k instead of $1k (if I were to ask for $5k)?

Any advice would be appreciated.

Thanks,
Joe

[Anonymous]

Joe, not at all! It's one of the basics of negotiation. But the amount you request should be tempered against where you stand. In this case your FICO scores and what's on your CR.

$10,000 might be a stretch if you're willing to accept $5k. IMHO, start out with a request of $8k.

BUT that's just me. Knowing where I stand right now. Your situation is different, I'm sure.

[jschaffer]

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@Anonymous wrote:
Joe, not at all! It's one of the basics of negotiation. But the amount you request should be tempered against where you stand. In this case your FICO scores and what's on your CR.

$10,000 might be a stretch if you're willing to accept $5k. IMHO, start out with a request of $8k.

BUT that's just me. Knowing where I stand right now. Your situation is different, I'm sure.

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Cool. I just wanted to make sure I wasn't crazy for intentionally "high-balling" when I'm not even trying to get that amount.

[Anonymous]

LOL. Not crazy at all. It's one of the basics of horse trading I learned from my dad when I was growing up.

[Anonymous]

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jschaffer wrote:

Cool. I just wanted to make sure I wasn't crazy for intentionally "high-balling" when I'm not even trying to get that amount.

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I agree with Sylvia's advice, but keep in mind that it really only applies to CUs. They are much more willing to put up with "high-balling" on CL and CLI requests.  Many major lenders will not counter offer and will simply deny you if you ask for too much, even though they might have approved you for a lesser amount.

[jschaffer]

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@Anonymous wrote:

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@jschaffer wrote:

Cool. I just wanted to make sure I wasn't crazy for intentionally "high-balling" when I'm not even trying to get that amount.

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I agree with Sylvia's advice, but keep in mind that it really only applies to CUs. They are much more willing to put up with "high-balling" on CL and CLI requests. Many major lenders will not counter offer and will simply deny you if you ask for too much, even though they might have approved you for a lesser amount.

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Excellent point. So any advice on how to properly ask for CL with a major lender?

[Anonymous]

jschaffer wrote:

Excellent point. So any advice on how to properly ask for CL with a major lender?

Well, it really only applies to CLIs, since you usually don't get to request an initial CL amount when applying for a brand new CC with a major lender.

It varies from lender to lender, but a good rule of thumb is to ask them to match your highest reporting limit, but that depends on how much of a difference there is between the current CL on the CC and your current highest limit.  If you're asking for an CLI on your current highest limit, I would suggest asking for no more than a 50% increase at a time.  That's just me, though.  Others will have different comfort zones, I'm sure.

There are exceptions, too.  Amex, for example, is typically pretty generous with CLIs, and I have heard of some people increasing their Amex CLs five-fold (from $1K to $5K).  I'm more conservative than that and only asked for 2x the current limit on mine, which was approved instantly.

[MidnightVoice]

In some cases there is no place to specify the CL required, as far as I remember.  But I have not applied for many cards.

[smallfry]

What are your scores and reports like? IF you are close to 700 and pretty clean I would apply to Pentagon Federal and ask for 15K if you have the income to back it up. Credit unions are unlike most credit card companies when it comes to limits. Don't lowball.