Super confused about low Util and CLI

[Anonymous]

I am currently working on credit building. Not a rebuild but a late starter. My question is: If I'm keeping a low utilization(9%) and planning on implementing the AZEO method, why would a card issuer or bank give me a CLI? Why would they give me more credit if I'm not even using what I have? I am very new into this build so I'm really confused but I'm sure someone here can explain it. I really appreciate these forums. So much info that has already taken me this far. Here are my stats if that helps.

Started building in Nov 2017- 550 average on all 3 CB

Jan 2018- EX 642 EQ 672 TU 651
Discover it 70/1400
Amex Delta gold 0/1000
Boa scc 5/600
Cap1 scc 2/200
Overstock 50/1750
Target 50/500
Kohls 20/300

[Gmood1]

Do you have an installment loan? If not, I'd grab a SSL before worrying about that AZEO stuff. It will have much more of a long term impact. The AZEO is temporary and not a true builder of credit. It's more of a score manipulator. Which is fine when you absolutely need every point.
Not something I'd do long term.

[Anonymous]

Yes. I am a master mechanic so I have a loan through Snap-on tools, originally 4200,current balance 2000. It reports to all CB. its actually my oldest acount as I have been using them for 10 years(multiple purchases). I am kinda thinking the AZEO is not something I need to do with my profile. But if I'm keeping my util low and why would any issuer increase my CL. Seems like they would just leave it where it's at if I'm never posting a big balance. I do use all of them but pay before closing to keep my util low

[Gmood1]

Does it report as an installment loan? Or a revolving account? Some of those loans similar to lines of credit, report as a revolving account.
Seems like your scores should be higher, if you've been using them that long?
Yeah I agree, IMHO you can build a straw house relying solely on AZEO or you can build a brick one with solid account history and usage, along with a mix of revolving and installment accounts.

[Anonymous]

On CK It shows as a secured loan. Some of accounts I listed are new and have not showed up on my CR. The amex, overstock, kohls and target are from a spree at the beginning of January. I knew nothing about how credit works until i started reading these forums back in September 2017. Im currently just making small purchases on all of them. Income is not an issue as I live way inside my means and don't buy something with credit cards that I can't pay for with any of my bank accounts. But I do want to be up in the 700 club. Goal for 2018 is 50k avail credit.

[Anonymous]

I just checked experian website and the snapon loan shows up as installments. Not showing any store cards yet or the amex

[Gmood1]

OIC, have you tried pulling your reports directly from the credit bureaus? It will show under the loan type it's reported as.
$50k TLs will be a walk in the park for you.
You should see a score increase over the next couple of months as those accounts report and age. 700 should come easy for you as well.

[Anonymous]

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@Anonymous wrote:
I am currently working on credit building. Not a rebuild but a late starter. My question is: If I'm keeping a low utilization(9%) and planning on implementing the AZEO method, why would a card issuer or bank give me a CLI? Why would they give me more credit if I'm not even using what I have? I am very new into this build so I'm really confused but I'm sure someone here can explain it. I really appreciate these forums. So much info that has already taken me this far. Here are my stats if that helps.

Started building in Nov 2017- 550 average on all 3 CB

Jan 2018- EX 642 EQ 672 TU 651
Discover it 70/1400
Amex Delta gold 0/1000
Boa scc 5/600
Cap1 scc 2/200
Overstock 50/1750
Target 50/500
Kohls 20/300

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I think you are confused what AZERO is. You can use every card as much as you want every month. You just pay off every card before the statement cut date except one. It doesn’t mean don’t use the cards. It just is how you pay the cards you use.

[Anonymous]

No but I will do all individual reports and get that cleared up. If it's reporting as a revolving credit line then I will get a SSL.

[HeavenOhio]

With scores in the mid-600s, you might want to do AZEO or come close to it most of the time. Card companies are known to use scores as a reason to deny CLIs. And some use scores that aren't necessarily current when they grant or deny CLIs.

In your case, balances are low, but you have every card reporting a positive balance. If you're keeping the balances as low as they are right now, you could just as easily have all but one as zero.

Although there are exceptions, most card companies like to see usage. You can have substantial usage and keep reported balances low — i.e. have the best of both worlds — by doing about what you're doing now. Discover is an exception. There's no rhyme or reason that we can pin down that explains how they operate.