What is better use of HP?

[BluePoodle]

I have never taken a HP for a CLI only for NTL.  I would generally think new cards with sign up bonus would be the preference. But after a while, if you are happy with your cards then I wonder if taking HP for CLI is worthwhile.  So I am just curious to what others thoughts are on the subject.  I realize everyone has different objectives and needs with their CC portfolio and spending but I do like hearing about others experiences and opinions.  At this point, all of my CLI's have been auto or SP's.

[Anonymous]

HP for spend bonus is worth it for sure when the bonus is large enough

[Anonymous]

Very good point emphasizing that the point of having good credit is to make money off of it. Whether that is a free first class ticket to Hawaii from rewards or a lower mortgage interest rate, the point is: use your good score! If you just have good credit but don't use it then it ain't worth anything

[Anonymous]

+1 Credit is only worth as much as it is used.

[Chris679]

I will be taking HP for Citi DC at the end if the month. I am usually against HP CLI but I will have no EQ inq and this was a TYP that I was ok with the $5000 limit. Now that it is my #1 card Im looking for $15000 or so and the HP makes sense. Did the same for BoA last year when I got a PC on the card and was suddenly using way more than before.

[Anonymous]

Obviously, situations vary (once I have all the credit cards on my wish list, I would rather take a HP for a CLI then apply for a new account), but in general a new card is better for two reasons.

1) Sign up bonuses (this has been mentioned in previous posts)

2) Sometimes, by taking a HP CLI, you are robbing yourself of some potential future auto-luv. Imagine wasting a HP for a CLI a month before they were going to give you a CLI automatically. Obviously you can't know in advance when you are going to get some auto-luv, but you might be robbing yourself of that chance by taking a HP CLI. Obviously, there is no reasonable comparison to this situation with new credit. (You don't generally get new lines of credit spontaneously and without a HP.)

[Anonymous]

---

@Chris679 wrote:
I will be taking HP for Citi DC at the end if the month. I am usually against HP CLI but I will have no EQ inq and this was a TYP that I was ok with the $5000 limit. Now that it is my #1 card Im looking for $15000 or so and the HP makes sense. Did the same for BoA last year when I got a PC on the card and was suddenly using way more than before.

---

I agreee that this is the sort of situation where an HP CLI makes sense: if you are either paying several times or month, or not using the card as much as you want because of a small CL, a CLI is needed, and if soft isn't available....     The other case might be where getting a new card is hard because of baddies/too many new accounts etc, and util is high (but not too high!) and an existing issuer is willing to give a CLI (not sure how often this can happen though)

In most other cases,using it for a new card seems to make more sense, for reasons listed by others.  

Before I knew better, I've twice asked for CLIs that became HPs.  First was a mistake, I did it on the Fidelity Amex when I  meant to do it on Citi Forward (yes, all these credit cards and banks look the same).   I got that, then asked for a CLI on the Forward and was declined.    That turned me off HP CLIs!