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What is the purpose of having a high CL when u never use it?

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09Lexie
Moderator Emerita

Re: What is the purpose of having a high CL when u never use it?


@Fico2Go wrote:

Lexie... rewards whether baggage fees or seat upgrade or concierge services can be paid with cash too.  So I'm not quite convince.. not yet a tleast.. that cash is inferior to rewards programs.  Unless of course the value in rewards broken down as cost value exceeds that which cash could buy. 

 

Some use cards to finance making money again PIF 

I have a buddy rehabs houses pays cash for the house dirt cheap

CC's to remodel and then sells all within a 30-45 day period

 

Myjourney.. On your final comment  "IMHO you need to broaden the way your looking at cards."   Yes I am aware that CCs can be great substitutes for short term interest free loans.  But there's also risks in doing so.  I won't get too much into this but yes u are correct. 

 

 


I think you are missing my poInt.  I'm not paying for these upgrades- they are a product of simply using my cards for everyday purchases.  Yes, I can pay for upgrades but why would I if I can get them for free?

Message 21 of 65
myjourney
Super Contributor

Re: What is the purpose of having a high CL when u never use it?


@Fico2Go wrote:

Lexie... rewards whether baggage fees or seat upgrade or concierge services can be paid with cash too.  So I'm not quite convince.. not yet a tleast.. that cash is inferior to rewards programs.  Unless of course the value in rewards broken down as cost value exceeds that which cash could buy. 

 

Some use cards to finance making money again PIF 

I have a buddy rehabs houses pays cash for the house dirt cheap

CC's to remodel and then sells all within a 30-45 day period

 

Myjourney.. On your final comment  "IMHO you need to broaden the way your looking at cards."   Yes I am aware that CCs can be great substitutes for short term interest free loans.  But there's also risks in doing so.  I won't get too much into this but yes u are correct. 

 

 


The same risk exists every time you swipe

Anyone's financial picture can change at any given moment of time in seconds..

Due to health, job, market change, etc etc Smiley LOL

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 22 of 65
icetrap06
Regular Contributor

Re: What is the purpose of having a high CL when u never use it?


I stive for higher limits for a few reasons:

1.) Purchasing Power - For instance if a business trip will cost me 10k, it's nice to have a single card that can accomodate.

2.) Points Power - Higher credit limits allow me to take better advantage of purchase rewards without approaching my credit ceiling

3.) Product Flexibility - For a while I wanted the CSP, but was denied because Chase wants to see at least one account with 5k

3.) Develop Credit Profile - if managed responsibly, may help with larger purchases down the road (Home, Auto, etc...) 

NFCU cashRewards (22k) | Discover IT (8k) | AMEX EveryDay (5k) | AMEX Delta Gold (5k) | CSP (5k) | Marriott Rewards Premier (5k) | Citi Hilton Reserve(5k) | AMEX SPG (2k)
----------------------------------------------------------------------------------------------
Scores: EQ - 670 | TU- 742 | EX - 691
Message 23 of 65
Fico2Go
Established Contributor

Re: What is the purpose of having a high CL when u never use it?

Lexie.. with all due respect cashback is teh same way.  You are getting cashback on things u buy everyday too.  Only instead of earning points u earn actual money that can be used for anything u so  desire.  Further I don't believe these rewards whether points or cash are free at all.  It's not like creditors are giving us rewards and/or cashback where no purchase is necessary.  It's free with a condition of spending. 

 

I understand your point.. let's not get too technical on what free means. 

 

 

Discover IT $19,000 == 12/2013
AMEX 12/2013 ---BCP $12,000 === BC $23,000 ----- 04/2014
CHASE SLATE $5,700 === 12/2013
BoA 123 $6000 === 12/2013
Barclay Rewards $1500 == 12/2013
Message 24 of 65
enharu
Super Contributor

Re: What is the purpose of having a high CL when u never use it?


@Fico2Go wrote:

Lexie.. with all due respect cashback is teh same way.  You are getting cashback on things u buy everyday too.  Only instead of earning points u earn actual money that can be used for anything u so  desire.  Further I don't believe these rewards whether points or cash are free at all.  It's not like creditors are giving us rewards and/or cashback where no purchase is necessary.  It's free with a condition of spending. 

 

I understand your point.. let's not get too technical on what free means. 

 

 


Certain mom-and-pop establishments might give you a discount for using cash. If so, then it's obviously going to be a better deal than most credit cards rewards program. Big box retailers, such as Walmart, are not going to adjust their price regardless of the method of payment.

 

Just think of rewards as discounts on your purchases.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 25 of 65
icetrap06
Regular Contributor

Re: What is the purpose of having a high CL when u never use it?


@Fico2Go wrote:

Lexie.. with all due respect cashback is teh same way.  You are getting cashback on things u buy everyday too.  Only instead of earning points u earn actual money that can be used for anything u so  desire.  Further I don't believe these rewards whether points or cash are free at all.  It's not like creditors are giving us rewards and/or cashback where no purchase is necessary.  It's free with a condition of spending. 

 

I understand your point.. let's not get too technical on what free means. 

 

 


Many cards include upgrades (and other benifits) as a perk of the card (not conditional based on spending).  Any points accrued can be used for additional beneifts not included with the card (i.e. redemption for hotel stays or flights, etc...)

 

I believe this is what Lexie is referring to. 

NFCU cashRewards (22k) | Discover IT (8k) | AMEX EveryDay (5k) | AMEX Delta Gold (5k) | CSP (5k) | Marriott Rewards Premier (5k) | Citi Hilton Reserve(5k) | AMEX SPG (2k)
----------------------------------------------------------------------------------------------
Scores: EQ - 670 | TU- 742 | EX - 691
Message 26 of 65
09Lexie
Moderator Emerita

Re: What is the purpose of having a high CL when u never use it?


@Fico2Go wrote:

Lexie.. with all due respect cashback is teh same way.  You are getting cashback on things u buy everyday too.  Only instead of earning points u earn actual money that can be used for anything u so  desire.  Further I don't believe these rewards whether points or cash are free at all.  It's not like creditors are giving us rewards and/or cashback where no purchase is necessary.  It's free with a condition of spending. 

 

I understand your point.. let's not get too technical on what free means. 

 

 


Not getting technical at all.  You are entitled to your belief and opinions. However, I have and have had rewards and cashback cc's. I receive more benefits with paying using might credit card -which was the topic- then using the cashback I earned.  

By using my credit card, I continue to benefit from not only the charge, the protection, the security but my credit history.

 

There is no way, I would have been able to qualify for multiple homes, leases, loans etc by showing a lender just my bank account. 

 

Message 27 of 65
09Lexie
Moderator Emerita

Re: What is the purpose of having a high CL when u never use it?


@icetrap06 wrote:

@Fico2Go wrote:

Lexie.. with all due respect cashback is teh same way.  You are getting cashback on things u buy everyday too.  Only instead of earning points u earn actual money that can be used for anything u so  desire.  Further I don't believe these rewards whether points or cash are free at all.  It's not like creditors are giving us rewards and/or cashback where no purchase is necessary.  It's free with a condition of spending. 

 

I understand your point.. let's not get too technical on what free means. 

 

 


Many cards include upgrades (and other benifits) as a perk of the card (not conditional based on spending).  Any points accrued can be used for additional beneifts not included with the card (i.e. redemption for hotel stays or flights, etc...)

 

I believe this is what Lexie is referring to. 


This is correct

Message 28 of 65
09Lexie
Moderator Emerita

Re: What is the purpose of having a high CL when u never use it?


@Fico2Go wrote:

My Journey...  I bet the credit companies know this all too well.  They know that even if they grant CLs of $50K the accountholder will use no more than $10K. 

 

And if that person uses more than 10K a domino effect begins to take hold.

 

AA for possible account closure;

Other creditors following suit;

interest rate goes up;

 


Seems all our hardwork to RECON and request for CLIs may not be all that useful if in fact we can't or wont be allowed to effectively use the it.  

Shall I say a glass ceiling effect is in place? 

 

 


I have no idea where you are getting any of this information from- it hasn't happened to me and from plenty of people I know personally.  Those it may happen to have usually caused the lender to do a CLD or AA.  

 

It doesn't just happen because today is Wednesday. 

Message 29 of 65
Walt_K
Senior Contributor

Re: What is the purpose of having a high CL when u never use it?


@09Lexie wrote:

@Fico2Go wrote:

My Journey...  I bet the credit companies know this all too well.  They know that even if they grant CLs of $50K the accountholder will use no more than $10K. 

 

And if that person uses more than 10K a domino effect begins to take hold.

 

AA for possible account closure;

Other creditors following suit;

interest rate goes up;

 


Seems all our hardwork to RECON and request for CLIs may not be all that useful if in fact we can't or wont be allowed to effectively use the it.  

Shall I say a glass ceiling effect is in place? 

 

 


I have no idea where you are getting any of this information from- it hasn't happened to me and from plenty of people I know personally.  Those it may happen to have usually caused the lender to do a CLD or AA.  

 

It doesn't just happen because today is Wednesday. 


If OP is searching through old posts and reading too much from 2008-2009, that could explain it.  OP, aggressive AA isn't that common anymore.  


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Message 30 of 65
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