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Is there a method to the madness of maximizing CLI's?
If so, are there different methods for various Cards and card companies?
What is your method for trying to optimize a CLI before pressing the LUV Button?
So, high usage, low usage, multiple PIF per month, etc... don't really matter?
Just use card and wait for credit reports to show positives is all I need to focus on?
I can do that
@Anonymous wrote:So, high usage, low usage, multiple PIF per month, etc... don't really matter?
Just use card and wait for credit reports to show positives is all I need to focus on?
I can do that
There are a lot of opinions on that, and different companies react differently.
E.g., Barclays posted a blog post one day which basically suggested that they are most likely to give a CLI to an account that has an average balance in the 20% to 35% range. Their thinking is that too high a percentage indicates higher credit risk, while too low a percentage indicates lower profitability because the person doesn't use their account a lot.
Many people think Discover likes to see a lot of usage, but I've seen people who have no usage on their Discover card get big CLI's.
The company I have most experience with is Capital One. I get the impression they like to see you using the card a lot, and paying it down to zero rapidly. And they don't really care whether your percentage utilization is high or low.
It really is a shot in the dark. There are lots of data points that suggest that heavy usage will usually help with a CLI every 6 months or so. Well I've put $22K through my quicksilver in the last 10 months, my FICO has increased almost 40 points, and have never had more than 5% report. However, 10 months later and still no CLI.
Whatever algorithm they use you'll qualify for one when they think you do. I hate to be so dreary but there's no way to really tell what will make a person qualify from the next. The best thing I could suggest is read posts pertaining to the cards you have and see what tendencies a company has for issuing CLI's, and hope you can align yourself with the CLI Gods! LOL.
@Anonymous wrote:
the only method is simply qualifying for it. using the card and giving the creditor a need to grant the CLI
+1 nailed it
IMO there is 2 ways to obtaining a high CL.
1. You use your card alot surpassing the 30% margin on the total limit of the card. Some CC companies will notice and offer to increase your limit in hopes you run it up and start paying interest on it.
2. You keep it cool and calm, you stay below the 30% mark on the total limit of the card and with a clean record of payments and with bumping your income information on the CC website you apply for a CLi.
I have never maxed out any card, or have gone over the 30% on any card an have cards ranging from 5k-25k CL.
@Anonymous wrote:
If so, are there different methods for various Cards and card companies?
It varies a lot depending on the CCC.
Which are you trying to raise?