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Quick, quick quick...

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Established Contributor

Quick, quick quick...

I really appreciate the knowledge and curiosity of so many members of this forum. I have learned a lot from it.

 

One thing, though, that I have been noticing is a general impatience when it comes to building good credit. It seems that a lot of people just think that you build good credit overnight. One of the things that I've taken away from this site is that it takes years and years to establish good age of your accounts. Through these years, you show that you are able to make payments on time. However, a lot of people think that they're entitled to heavy CLIs after a week of usage of their new credit card. We've become so accustomed to the mantra of  "more, more, more" that we get upset when we don't receive an auto CLI after three months (that feeling happened to me too).

Looking back at all of my mostly short credit history, I am still amazed how quickly lenders extend huge limits. In the grand scheme of things, what are twelve months when waiting for a nice CLI? I personally think that if you're able to show that you make twelve consecutive payments in a row you're more reliable than when you make only three.

I think it would be better if some lenders were to turn the six-month requirement for CLIs into a twelve-month requirement. That way, we would also be careful with our spending, and would think twice to rack up more balances.

 

I understand that some people with low CLs need a quicker way to increase their CLs as the low limits interfere with their spending habits. But even then, you can get around that easily if you make multiple payments each month.

 

I also remember that when I had my first CC with a $1000 limit, I couldn't wait for that limit to be eventually increased to $2000 and beyond as I could then charge an airplane ticket and book a hotel without running the risk of charging over the limit.

 

One needs to establish the credit profile that matches one's needs. However, we should all be patient and realize that this can take time. And time in credit building is measured in years noth in weeks or months.

 

Message 1 of 10
9 REPLIES 9
Valued Contributor

Re: Quick, quick quick...

Good post OP, A++ read, will read again!

 

Seriously though, you're right. I feel the same way at times. I get upset that im declined for a prime card at first, but calm down and just say to myself that I still need to improve my credit and that I have a ways to go. Just takes time and patience. Its so easy to ruin your credit but takes lots of time to improve it.

Message 2 of 10
Mega Contributor

Re: Quick, quick quick...

My only concern is the Util. factor. I like to PIF every month and right now it's going to be hard to do that with mt current situation. I dont have the intention of maxing out cards but a higher CL will help FICO scorign wise and I can use the cards moderately and get by.




EQ FICO 548 3/3/16
Message 3 of 10
Moderator Emeritus

Re: Quick, quick quick...

Well said, OP. A credit rating is basically a credit reputation, and any type of reputation takes time to develop. And, if it takes a hit, it takes time to recover.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
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Message 4 of 10
Regular Contributor

Re: Quick, quick quick...

More CL means more probability to get into to uncontrollable debt. A relative small limit while meeting spending requirements (say that $1700 airplane ticket) is good enough.


Starting Score: EQ: 703 (4/2011);
Current Score: EQ: 738 (04/2013)

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Message 5 of 10
Frequent Contributor

Re: Quick, quick quick...

+++++1.  Often when someone wants a considerable cli the response of forum members is "go for it" with little thought to whether a cli is actually needed or beneficial.   Others seem insulted when they only get a few hundred dollars worth of credit ("I have a bunch of baddies from last year but my credit score has jumped to 602.  So why can't I get at least $10k from Citi or an Am Ex card?")   It's a good thing when folks like wollepopolle remind us of the patience over many year's time needed to develop outstanding credit.)

Message 6 of 10
Established Contributor

Re: Quick, quick quick...

It does make sense that it takes a while to build reliable credit history. At the same time, it's frustrating being stuck in the waiting phase. When you already have a $5-$15k card, it's easier to be patient and wait for CLIs. When you're stuck with cards with toy limits (<$1k), not being able to get a CLI is frustrating since you can't really use the cards for any unexpected expenses, and buying anything brings your util% up so quickly. And then you start getting impatient about having to wait for a CLI.


 

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Message 7 of 10
Established Contributor

Re: Quick, quick quick...


@dp321 wrote:

More CL means more probability to get into to uncontrollable debt. A relative small limit while meeting spending requirements (say that $1700 airplane ticket) is good enough.


Large CLs don't cause debt. Irresponsible spending does. Keeping your CLs low to avoid overspending won't be very effective, IMO. That's treating the symptom instead of the disease. 

Message 8 of 10
Established Contributor

Re: Quick, quick quick...


@KingAdrock wrote:

@dp321 wrote:

More CL means more probability to get into to uncontrollable debt. A relative small limit while meeting spending requirements (say that $1700 airplane ticket) is good enough.


Large CLs don't cause debt. Irresponsible spending does. Keeping your CLs low to avoid overspending won't be very effective, IMO. That's treating the symptom instead of the disease


100% agreed. If we have a propensity to overspend, a small CL will not keep us from it. We will figure a way around it.

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Message 9 of 10
Moderator Emerita

Re: Quick, quick quick...


@OnTheRebound wrote:

@KingAdrock wrote:

@dp321 wrote:

More CL means more probability to get into to uncontrollable debt. A relative small limit while meeting spending requirements (say that $1700 airplane ticket) is good enough.


Large CLs don't cause debt. Irresponsible spending does. Keeping your CLs low to avoid overspending won't be very effective, IMO. That's treating the symptom instead of the disease


100% agreed. If we have a propensity to overspend, a small CL will not keep us from it. We will figure a way around it.


Yes, but when someone knows that they have problems in this area, there's a lot to be said for limiting vulnerability a bit. As you say, it won't work completely, but it's one weapon in the arsenal.

 

+1,000,000 on all the comments about undue impatience. Yes, it's frustrating that it can take time to change things around, but it's like losing weight. It took some time to get it on there, and it's going to take some time to get it back off.

 

Look at it this way, a little frustration is good for the character!  Smiley Tongue

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 10 of 10
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