Increase Credit Availability to Improve Credit Utilization?

[Anonymous]

I'm in my 30s with a good credit history (usually high 700s, currently 813). When comparing to others with high credit scores, my largest deficiency is typically in my credit utilization rate. I have 3 credits cards, with a combined credit availability of about $20k ($17k is on one card), but I only really need about $4k of that credit. Utilization usually runs a little over 10% for me. Currently, I don't see the need to apply for any credit in the next couple of years.

My question is this - is it worth applying for a high-limit credit card or increasing the limit on a card in order to increase available credit and decrease my utilization for the long term? 

Thanks for any advice.

[skigirl916]

Yes.

[Jlu]

inb4 nasa

[Anonymous]

If your income is good, you should get another high limit no problem with that kind of score. 

[SunriseEarth]

What CCs do you have?   You might be better off seeking CLIs on your current cards, unless there's a CC out there that would suit your needs better than what you have.  

[Anonymous]

Capital One No Hassle (basically Venture now), Discover, Banana Republic

C1 recently involuntarily increased my limit, which was nice. I requested an increase from Discover last year and got a modest one. The BR card was a mistake and is only open because it's a plus on my credit history.

[Anonymous]

As a contrary view: utilization only matters when you are applying for loans, and if you don't plan to get any in the near/medium term, it doesn't really matter.   Also, if you really needed to, you can keep your reported balance down by paying before the statement cuts.

So, if you feel OK now, and don't want another card, I wouldn't bother.   But that's a minority view here, where big CL and CLIs are what life is all about!

[skigirl916]

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@Anonymous wrote:

As a contrary view: utilization only matters when you are applying for loans, and if you don't plan to get any in the near/medium term, it doesn't really matter.   Also, if you really needed to, you can keep your reported balance down by paying before the statement cuts.

So, if you feel OK now, and don't want another card, I wouldn't bother.   But that's a minority view here, where big CL and CLIs are what life is all about!

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I couldn't disagree more.  UTL is a very large factor in your FICO score and getting approved for pretty much anything.

[Ghoshida]

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@Anonymous wrote:

As a contrary view: utilization only matters when you are applying for loans, and if you don't plan to get any in the near/medium term, it doesn't really matter.   Also, if you really needed to, you can keep your reported balance down by paying before the statement cuts.

So, if you feel OK now, and don't want another card, I wouldn't bother.   But that's a minority view here, where big CL and CLIs are what life is all about!

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True. 

I'd personally like to apply for cards which give superior benefits compared to my current lineup, e.g. rewards and bonuses.

If OP is happy with current lineup, and has decent scores (according to OP's post that is the case), I'd think it's better to ask current lenders for SP CLIs. That has the plus of utilization padding and no minus related to HP and new accounts. 

[Anonymous]

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@Anonymous wrote:

As a contrary view: utilization only matters when you are applying for loans, and if you don't plan to get any in the near/medium term, it doesn't really matter.   Also, if you really needed to, you can keep your reported balance down by paying before the statement cuts.

So, if you feel OK now, and don't want another card, I wouldn't bother.   But that's a minority view here, where big CL and CLIs are what life is all about!

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+1

I'd do that before adding an unnecessary card just for utilization sake.

That having been said you /are/ well positioned to get another card. Maybe get another one to maximize rewards.