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Is there a reason to get a CLI if I PIF each month?

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Anonymous
Not applicable

Is there a reason to get a CLI if I PIF each month?

Hello All,

 

Quick question for you gurus!

I have a 20,000 limit on my chase marriott card and I usually rack up 2,000 a month on the card. But I pay the card in full twice a month, AKA I pay off the card every two weeks. So my balance is always reported as 0 the credit bureaus. So is there a point to increase my total credit limit?

 

Would it some how help me in the long run like if I am applying for a home loan and my total available credit was 80,000 compared to 20,000? I fully understand the debt utitization ratio, but it's irrelevant because I will always PIF. So I am just wondering if just having MORE credit (regardless of utilization) will somehow boost my credit score.... Please let me know!

 

Thanks!

Message 1 of 7
6 REPLIES 6
frugalQ
Valued Contributor

Re: Is there a reason to get a CLI if I PIF each month?

Sometimes people want to increase their CL to provide some type of cushion in case they ever have to carry a balance...it would not interfere with their everyday spend.

Some people need the CLI because their current limit is not enough to cover their monthly spend.

Some people do it to pad their overall util for scoring purposes.

Some people do it for purely for personal goal reasons.

If you never carry a balance, have enough of a cushion just in case you ever do, don't have any personal credit limit goals you are trying to achieve, and are planning to buy a house....it may not benefit you to get any increase.

I have heard of people having to close some of their cc's during the mortgage process because of too much available credit.
AmEx Green NPSL | Amex BCP 16K | Citi Simplicity 10k | Discover IT 9K | Chase Slate 7.5K | Amex Hilton HHonors Surpass 7K | Capital One QuickSilver 6K | Home Depot 5k | Chase Freedom 4.5K | LOC 2.5K
Message 2 of 7
Anonymous
Not applicable

Re: Is there a reason to get a CLI if I PIF each month?

Thanks for your response! Anyone else have any feedback?
Message 3 of 7
JonStur
Established Contributor

Re: Is there a reason to get a CLI if I PIF each month?

More info if possible... Is this your only trade? Do you have any baddies ( collections, bnkrptcy, ch-offs)? Recent inqs? Income? these are also important factors and will get you a better assessment from us... 


Starting Score: TU 595 EX 600 EQ 585
Current Score: TU 820 EX 825 EQ 812
Goal Score: 800 Club (Mission Accomplished)

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Message 4 of 7
Anonymous
Not applicable

Re: Is there a reason to get a CLI if I PIF each month?

You should let atleast some balance report on your card. Ideal util ratio between 1-9%. You can still pay off 2 times in a month, just pay second time after the statement has been generated.
Message 5 of 7
indiolatino61
Valued Contributor

Re: Is there a reason to get a CLI if I PIF each month?


@frugalQ wrote:
Sometimes people want to increase their CL to provide some type of cushion in case they ever have to carry a balance...it would not interfere with their everyday spend.

Some people need the CLI because their current limit is not enough to cover their monthly spend.

Some people do it to pad their overall util for scoring purposes.

Some people do it for purely for personal goal reasons.

If you never carry a balance, have enough of a cushion just in case you ever do, don't have any personal credit limit goals you are trying to achieve, and are planning to buy a house....it may not benefit you to get any increase.

I have heard of people having to close some of their cc's during the mortgage process because of too much available credit.

+1

Message 6 of 7
kimmiller112
Frequent Contributor

Re: Is there a reason to get a CLI if I PIF each month?

Is this your only tradeline?  If you are thinking about a mortgage in the future, you might want to think about adding one or two more cards.  Just keep in mind that you would want to add those cards at least 6 months prior to apping for a mortgage.  And, like someone mentioned, ideally, you want one card to report between 1-9% utilization with the rest reporting 0.

Barclays USAir World MC $8300 - DCU $7500 - USAA World MC $7000 - PayPal Extras MC (GE) $5500 - Chase Saphire Preferred $5000 - Discover It $6000 - Barclays Sallie May $2700 - Chase Freedom $1000 - Capital One $8500 (business) - store cards ranging from $500-$9500
Message 7 of 7
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