How to get a higher credit limit?

[frddlawson]

The key for credit line increases is to make yourself look more attractive. Creditors like to see activity on accounts, low utility( typically under 20% but 10% is ideal), and no recent derogatory information on credit reports. If there are some blemishes on your credit report, I suggest that you work on those things first before requesting an increase. Though some creditors only look at account activity, others look at credit history either hard or soft inquiry. So we want to cover ourselves all the way around just to make sure. And also allow time for improvements, both account history and credit history.

[Anonymous]

My utilization right now is horrible. I am at something like 90%. Next month, after everything reports, it should be in the 70% range. Within a year I plan to have everything paid off. I have had my Wells Fargo card for over five years. When I originally got it, they gave me a $1000 CL. After a year or so they bumped it up to $1500. I have requested a CLI every year since they (just did it for 2011 a couple of days ago) and they deny it. Every. Darn. Time. I reiterate that it has NEVER been late. I have ALWAYS paid more than the minimum but I do keep a balance on it. Trying to fix that.

On another note, none of them will lower my interest rate, either. My wife's Wells Fargo card went from 5.46% to 19% for no reason. I loathe Wells Fargo.

[visorboy1974]

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@Anonymous wrote:

My utilization right now is horrible. I am at something like 90%.

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I think that answers the question as to why nobody's giving you a CLI.  Get your utilization below 50% and then you'll at least have a shot. 

I was at about 85% utilization and nobody would touch me for an increase.  I had to get it below 50% before the CC issuers would even give me as little as a $100 increase.  Now that I have my utilization under control, they are MUCH more willing to increase me. 

[cw81]

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@visorboy1974 wrote:

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@Anonymous wrote:

My utilization right now is horrible. I am at something like 90%.

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I think that answers the question as to why nobody's giving you a CLI.  Get your utilization below 50% and then you'll at least have a shot. 

I was at about 85% utilization and nobody would touch me for an increase.  I had to get it below 50% before the CC issuers would even give me as little as a $100 increase.  Now that I have my utilization under control, they are MUCH more willing to increase me. 

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+1

[vish1]

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@cw81 wrote:

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@visorboy1974 wrote:

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@Anonymous wrote:

My utilization right now is horrible. I am at something like 90%.

---

I think that answers the question as to why nobody's giving you a CLI.  Get your utilization below 50% and then you'll at least have a shot. 

I was at about 85% utilization and nobody would touch me for an increase.  I had to get it below 50% before the CC issuers would even give me as little as a $100 increase.  Now that I have my utilization under control, they are MUCH more willing to increase me. 

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+1

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OP:: Another concern to note here is, that if you don't do something for your Util sooner than soon, you may risk a special kind of AA called balance chasing, where lenders keep reducing your CL close to your balance whenever you pay down. This keeps can you maxed out all the time.

[Anonymous]

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OP:: Another concern to note here is, that if you don't do something for your Util sooner than soon, you may risk a special kind of AA called balance chasing, where lenders keep reducing your CL close to your balance whenever you pay down. This keeps can you maxed out all the time.

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Well that is a scary concept, but on the bright side, as I have been paying them down, this hasn't been happening (thus far.)

[aftermath]

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@Anonymous wrote:

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OP:: Another concern to note here is, that if you don't do something for your Util sooner than soon, you may risk a special kind of AA called balance chasing, where lenders keep reducing your CL close to your balance whenever you pay down. This keeps can you maxed out all the time.

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Well that is a scary concept, but on the bright side, as I have been paying them down, this hasn't been happening (thus far.)

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It doesn't happen when you make small payments.  It happens once your balance is low.

I had an Amex Blue Cash that I maxed out to $3000.  I paid a little over the mimimum due every month, and once I finally got it paid down to $1000, they reduced my credit line to $1500.  Once I paid it down to $500, they reduced my credit line to $500.

If you aren't able to pay your balances down quickly and keep your utilization low, then you don't need more credit. <--- that is what the banks are telling you.

[Anonymous]

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It doesn't happen when you make small payments.  It happens once your balance is low.

I had an Amex Blue Cash that I maxed out to $3000.  I paid a little over the mimimum due every month, and once I finally got it paid down to $1000, they reduced my credit line to $1500.  Once I paid it down to $500, they reduced my credit line to $500.

If you aren't able to pay your balances down quickly and keep your utilization low, then you don't need more credit. <--- that is what the banks are telling you.

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I contacted my major cards (USAA & Wells Fargo) and voiced my concern about the possibility of this being done to me. USAA said they don't do that. WF said they do but only when they think there is abuse on the account. IE: over utilization (she said it would only happen if I am constantly OVER my limit and then suddenly pay it down, they might drop it the limit. In my case, I have never been over.) or under utilization such as a $2000 credit limit and NEVER charging over $200 to it. 

[vish1]

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@Anonymous wrote:

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It doesn't happen when you make small payments.  It happens once your balance is low.

I had an Amex Blue Cash that I maxed out to $3000.  I paid a little over the mimimum due every month, and once I finally got it paid down to $1000, they reduced my credit line to $1500.  Once I paid it down to $500, they reduced my credit line to $500.

If you aren't able to pay your balances down quickly and keep your utilization low, then you don't need more credit. <--- that is what the banks are telling you.

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I contacted my major cards (USAA & Wells Fargo) and voiced my concern about the possibility of this being done to me. USAA said they don't do that. WF said they do but only when they think there is abuse on the account. IE: over utilization (she said it would only happen if I am constantly OVER my limit and then suddenly pay it down, they might drop it the limit. In my case, I have never been over.) or under utilization such as a $2000 credit limit and NEVER charging over $200 to it. 

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I won't bother to trust the WF CSR on this, they have no understanding of how risk algorithms work. I would still advice getting balances lower (if you can afford to).