What is better use of HP?

[BluePoodle]

Which is better? Taking a HP for a CLI on an existing card or taking one for a new CC?

Just curious what your thoughts are? 

Obviously, receiving a CLI without a HP is preferred. 

[chalupaman]

I think it all depends. With Chase, I've been able to get a lot out of just applying for new cards with them and with my SW card, I was able to transfer most of that limit onto my AARP to get one of my higher CLs. With Barclays, it might be better to wait for an auto CLI first and then go from there, etc. Discover's HP CLIs that result in just $500 increases I'm really on the fence about. I don't think HPs are the end of the world, especially if you're able to get something big in return, like how I've heard a lot about BoA's CLIs.

[VirtualCuriosity]

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@BluePoodle wrote:

Which is better? Taking a HP for a CLI on an existing card or taking one for a new CC?

Just curious what your thoughts are? 

Obviously, receiving a CLI without a HP is preferred. 

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There is no best because of too many what if scenerios and what a person is trying to accomplish.  BUT, IF we are just talking plain and simple (no changing utilization, etc), then I would say that taking it to increase the CL on the current card.  Simply because it doesn't affect AAOA.  Again, there is no best because it's different for many reasons. 

[mongstradamus]

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@BluePoodle wrote:

Which is better? Taking a HP for a CLI on an existing card or taking one for a new CC?

Just curious what your thoughts are? 

Obviously, receiving a CLI without a HP is preferred. 

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i think there are an number of factors, but i would lean towards new card especially if you are getting big signup bonus, but i can see other side of the coin where you take HP for CLI, and you don't have to have new account hitting your reports. 

[B335is]

I find way more value in using a hard pull for a new card or bonus. Amex cards even more due to backdating.

[Anonymous]

I have paid the HP price to increase CL in the past. However, since I now have several cards around the 10k range, I have sufficient credit to buy whatever I need. I never plan on carrying any sort of balance, so not really in the market for additional credit per se. I would rather take the HP and open a new account to get a signup bonus. I can then transfer the credit line to another card. 

[Anonymous]

New card with bonus. I value EX HPs a lot more than EQ or TU.

[chwebb1]

To me, I'd rather take a HP for a CLI, since with a new account, you get a triple whammy (new account hit, lower AAoA, and HP). But I suppose if you're not happy with your current card(s), the HP for a new account is well worth it. The hits I took for my new accounts in 2013 were definitely worth it to me (got in with AMEX, Barclays, BoA, Discover, and Citi, when I had crappy cards before). I think it mostly depends on where you are in your journey.

[VirtualCuriosity]

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@Anonymous wrote:

I have paid the HP price to increase CL in the past. However, since I now have several cards around the 10k range, I have sufficient credit to buy whatever I need. I never plan on carrying any sort of balance, so not really in the market for additional credit per se. I would rather take the HP and open a new account to get a signup bonus. I can then transfer the credit line to another card. 

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And that would lead right back to there is normally always a reason when someone is looking for a "better" use of something in a question.  It's always different for everyone, always, and yours makes sense for your reason.  The OP didn't specify what the objective is so one can only assume.

[Anonymous]

I think it depends on your situation. Ultimately the point of a good credit score is to get/save you money by getting rewards and low APR loans. So if you carry a balance and need to increase your score to lower the APR, need to get a loan soon, etc then you probably want to go with the CLI for those long term goals. On the other hand if you don't and APR doesn't matter to you, than you might as well cash a few score points with a good sign on bonus since you'll get them back in ~6 mo anyway. Just so long as you don't lose more money than the bonus in the long run by sacrificing a longterm goal.