@FicoMike0 wrote:Higher limits certainly help manage utilization.
Depends... total dollar amounts are still factored, high limit cards are not factored on fico 2,4,5, uti can also be managed by mid month payments, uti is transitory month to month and only needs to be managed when you expect to apply for credit anyway.
Managing uti is kinda meaningless and only used to pointlessly micromanage scores, that may or may not even be the deciding factor on a new application, and tens of thousands of dollars of charges are just as likely if not more so, to be an issue for most income brackets as whether you have a less than ideal uti or an optimized score.
plus who wants 50 cards, especially if they only have 1k limits on each card.
not only is that a logistical nightmare but I don't think anyone could actually use 50 cards on a Regular basis
I have 5 cards and I'm already finding it difficult to give each card any sort of decent spend each month. (Granted, I tend to play favorites, as I usually have 2 cards that get the bulk of my spend, but still)
Im the same exact way. Many people here maximize their rewards. And that's their main focus. So they give their spend to whichever card gives them the most rewards.
but I'm like you, I give my spend to whichever issuer rewards me for my spend the most through limits/increases. For example, chase gave me 5 cli in a row on my freedom, 5 consecutive months, no other issue has ever done that for me. So for the past 12 months or so they have been getting the vast majority of my spend.
But in 2 months my Amex is scheduled to go from 6k to 18k (assuming everything still looks good). This will make my Amex my highest limit by a good margin.
at that point, I will need to reevaluate, which card will become my main card. Chase gave me more increases but they were all fairly small, while Amex's gave me less increases, the amount of each increase was substantial thanks to their 3x increases.
@SRT4kid93 wrote:
Im the same exact way. Many people here maximize their rewards. And that's their main focus. So they give their spend to whichever card gives them the most rewards.
but I'm like you, I give my spend to whichever issuer rewards me for my spend the most through limits/increases. For example, chase gave me 5 cli in a row on my freedom, 5 consecutive months, no other issue has ever done that for me. So for the past 12 months or so they have been getting the vast majority of my spend.
Sorry op, for continuing this off subject topic.
What does the bank say when you try to deposit those rewards (CLI's)? What are you gaining, if not monetary results?
I think there could be a difference here of credit file development. One could make the case that (re)developing credit profiles could benefit quicker from pushing CL's higher (although I never had too, time is the ultimate file builder). But at some point, a credit profile will become thick and mature, anchoring scores, then it just comes down to immediate (2 years) profile data as the most important factor. With that in mind, to mature profiles, I continue the conversation.
There are plenty of folks here on the forum, who enjoy pushing for higher CL's, SL's & TCL, for no other reason other than gratification or sport. Nothing wrong with that. No harm to score.
But where there could be harm, would be in churn, excessive (spend does not justify) CC retention, CL's or TCL, could become a short term profile data detriment (last 2 years) to some issuers of new CC's and result in a denial of an application. If your not interested in churn, then this is not a major factor.
I'm in the camp of maximum CC churn when possible for maximizing return. At the same time I'm also in the camp of maximum rewards/return on my existing held CC's when not churning, for my spend. You can only churn so much in todays landscape before being shut down to excessive applications/approvals (2 years).
With that in mind, my focus on CL's, SL's & TCL, are to maintain a healthy level for my spend,/utilization, but no more than this. I never have to ask for a CLI and more often than not, have to ask for a CLD, upon a new CC aplication acceptance with a far too high, SL, for my spend, for CC's that I want to retain on maximizing rewards, when not churning. For CC's that I churn, I could care less what the SL is, as long as it's sufficient in achieving the SUB requirements.
Utilization is a fleeting factor, which can be manipulated in short time, regardless of CL, to maximize score. Another topic to be had.
In conclusion, back to the op's question, I would ask, what do you consider high limits? It's a relative factor to spend which could be far different from one party to another. I would assume by asking such a question your credit file is early in it's (re)build? Otherwise, you would receive appropriate SL's accordingly to your most recent profile SL's given or CL's in hold. Thus your looking to push your given SL's higher? Just push your CL's higher. AMEX has always been known for being a good issuer, to quickly push CL's higher on, if you got the spend. Higher CL's beget higher SL's.
Citi:
US Bank:
Chase:
Aven:
RH:
I'm not going to lie, part of it is the fact that getting increases/having high limits feels good.
I don't totally ignore cash back, but it's just not the most important thing to me right now.
im in the growth phase of my journey, so if I have 2 cards. 1 card gives me increaes every 3 months (like Amex)
and the other hasn't give me an increase in a year (like capital one)
I will naturally want to give more spend to Amex. Cash back is great, but when you really think about it, we are talking about cents on the dollar.
With a 1% card, I can spend 1000 dollars and get $10, or I can use a 3% card and get $30. That's only a difference of $20 for every $1000 worth of spend. And right now, growing my profile, is far more important than $20.
Im not going to stress myself out stressing over using the exact right card in every possible situation over a $20 difference.
but, if we are talking about differences in credit limits. Amex could take me from 6,000 to 18,000 in 3 months, while capital one hasn't budged In a year. That's the type of returns I like to see.
I have plenty of money, what I don't have is plenty of total credit. Since I walked away from credit for so long and had to start fresh.