Why such high CL's? and more questions...

[Anonymous]

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@fltireguy wrote:
I should also add that, from 2002-2015, I had NO credit cards at all. One day, while on vacation, I went to pick up my rental car with my GF. Well, that particular location didn't take debit cards (and I had well over $15k in the bank). My gf knew that i didn't have any cards, and that I was a cash person. It was SO embarrassing when I had o have her put it on her Visa.... that was the beginning of the turning point

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WOW fltireguy, your story sounds like my partner and I...he's always been a "cash" guy, and encouraged me to be that way too, but 20 years being "cash" people has always hindered us. Building my credit up has really given me a lift in my self esteem, so I totally appreciate your story. Man you went from one extreme to another. From just 2015 with no credit to $199 that's unfathomable, amazing, and possible!

[Anonymous]

While I accept that some people have other reasons, I believe in many cases high CLs are more "because I can" and getting a sense of achievement.  (Which can go too far when people think of a total CL was an asset of some type, which it isn't).

The often-cited "utilization" argument is, IMO, highly overblown.    Credit score only matters when applying for something (including CLI/APR reduction) and around those times, if you are not carrying balances out of necessity, it is easy to get util to what ever you like by paying before statement cut.  So at best, a high CL avoids the need to do this

[Anonymous]

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@fltireguy wrote:
Why the high CL's ? That's a good question
I think it's a personal thing, well, at least in my case it is. I've had crappy credit pretty much all of my life. Before March 2016, at 50 years old, my highest CL ever was $1800 on a partially secured CapOne card. I set a goal, after reading posts on here for months- the goal was to have a high enough CL on a card to buy a new car with. Not that I ever would, or that a dealer would let me. But that was my goal. It took me a 15 months, and lots of hard work, but I went from a 535 TU in 11/2015 to my 757 that I have today. And, I went from $1800 in CL (excluding my car loan), to just north of $200k, with my highest CL being $23000 with NFCU, followed by $15k at PenFed. I finally got in with Chase, BofA, and other prime banks, as well as Amex. I did file BK years ago, but never burned any lenders thankfully

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How did you do this so fast?

[Gmood1]

I do it for all of the above.. because I can, utilization and as a tool to help others and myself.
Went many years without it , just as others have in this thread. Now I guard it like money. It makes my life easier to have it. And I don't have to worry about utilization. Preparing to go back into business and some of these TLs will come in handy for payroll and other start up cost.

[Chickenpotpie]

If you're smart about how you use the cards You get a higher limit for utlizaton purposes.  I use about 1-2% of my overall UTL.  I don't have a lot of cards, thats not for me, but I don't really need them. I also have one for if Life Happens, as it sometimes does.

[fltireguy]

Kattak - I used collectionshield360 and somehow got a bunch of older baddies and collections deleted - I think that I had 8 that went away! Disputed a few more on my own. I paid an old CO from Target from 2011. (Aged off this June, but I still wanted to pay it anyway). Had an old BK age off in January. And then I had one baddie left - a VZW chargeoff that somehow had NOt gone to collections in a the 3 years it existed. Negotiated a settlement with VZ, and that put me where I am today, the only semi baddie is a paid CO, and I'm stuck with that for 3 1/2 more years, but it doesnt really seem to be hurting my scores or approvals at all anymore. The best move I have made was getting in with PenFed and NFCU (via NLSD last year when you could still do that). I'm no longer stuck in subprime car loan hell either 😁

[Anonymous]

1) The definition of 'high CLs' in going to very dramatically based upon one's perspective...a lot of ppl would feel 5k or 10k is by far enough in their minds, whereas others would be disappointed with that as a SL

I think, even a conservative person should have plenty of room between what they 'would' spend vs the CL available to them...it provides enough room to "live" how one wants to w/o having to be overly concerned over 'this' month's utilization rate

i.e. if one knows their spend is 2-3k and has a CL of 10-12k = not a problem...whereas CLs at 5-7k creates a juggling act and possible suppression of credit scores, when something may come up when the score may matter.
Trying to stay in the most positive light as much as possible makes having access to more than one needs empowering.

2) As for the 'cash only' deal...many ppl fall into that due to misunderstanding how to manage their finances...a person can still be a 'cash' person while still manipulating the use of CCs
Ppl with this mantra forget ( conveniently) that no matter what, there are time lapse payments or bills that are due other than TODAY all the time...

The cable, light, gas company sends all bill...you don't pay upfront with "cash"

Girl's Scout cookies and candy apple sales are sign me up now and pay when asked

My point being a "cash" person can use a CC to pay for gas on Monday and pay the bill on Tuesday or Friday and still essentially be a "cash" payer

I'm assuming a "cash" person uses a checking account among other modern tools at our disposal since Little House on the Prairie 😜

Anyway, WHY would a person with CASH in hand NOT use a Visa to purchase an electronic item or say a refrigerator and get an extra warranty, 3rd party assistance in the event of a dispute ( not to mention an overall discount, due to Cash-back) knowing full well they can walk out of the store on Saturday and pay the 3rd CC on Sunday/Monday

No %, no debt, a paper trial with all the benefits of having, again a billion dollar corporation backing one if a dispute comes up...only FEAR and/or ignorance of how to manage one's affairs would challenge the wisdom of sending that spend through the CC.

Go ahead and have a dispute or want your 💰 back if you've given the vendor CASH =
A) Not a chance in heck
B) Totally at the MERCY of whatever the vendor says

CC transaction Visa steps in or AmEx, which has an excellent reputation for fighting on behalf of their clients, actually their 'members'

Doesn't make any sense to totally 'hide' from the "scoreboard" that we know exist in our country out of stubbornness, especially when one can totally can totally control what they pay and how w/o a lick of % paid.

It'd be like a person refusing to take 'test' knowing that that's how you get into college, grad school or get a DL
So now one isn't going to be a licensed driver outta principle c'mon now 😎

[driftless]

There is another reason whey some have high CL's - they use them.  There are some people of this board with signifcant income, others travel a lot.  If you travel most weeks, and if some of that travel involves overseas flights, it is easy to spend a lot on a couple of credit cards; even more so if they concentrate their spend on one or two cards because of rewards.  Think consultants, independent contractors, etc.  

[Chickenpotpie]

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@Anonymous wrote:

While I accept that some people have other reasons, I believe in many cases high CLs are more "because I can" and getting a sense of achievement.  (Which can go too far when people think of a total CL was an asset of some type, which it isn't).

The often-cited "utilization" argument is, IMO, highly overblown.    Credit score only matters when applying for something (including CLI/APR reduction) and around those times, if you are not carrying balances out of necessity, it is easy to get util to what ever you like by paying before statement cut.  So at best, a high CL avoids the need to do this

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 I won't deny you're right in most cases.  I mean, people put in a lot of work to getting and keeping their credit right so I can see why they kinda go nuts. 

I can really only talk to my own circumstances.  Most of my CLI came organcally.  There's been a handful of times (really less) that I  did ask for an increase to boost UTL. I could get more, have more cards, but  I don't because I don't NEED to.   I let them give me more oganically sure...nothing wrong with that, but I'm pretty much done asking for more.  For me its more or less about gettng better rates now.  I will admit to being a bit of a weirdo especally because  I hate to app.It makes me really sick to my stomach (and not in a good way!), so  I do it only when necessary.

when my TCL was lower, I could easily use 10 or more% of UTL.   Now even though I run the same amount through the cards, its lower because the TCL is higher. 

Yes of course it feels fab that I can get great rates and good limits, can't lie about that.  But its not my nature to go all out especially on credit.    I feel like I wll always be in rebuilding.

[Anonymous]

My main reason for getting my existing credit lines as high as possible is so that when I open new cards (business ones in particular), the limit will be high.  Credit card companies issue credit lines that are somewhat comparable to your existing lines (i.e. it would be difficult to get approved for a 25+ K credit line if your largest line is 5K).  Because I own a business, and spend anywhere from 3-10 K per day on my business credit card line, I have to ensure that I can get massive limits otherwise its a real pain to constantly have to pay off.  And because I'm always on the hunt for a slightly better rewards card for my high spend, I will occasionally want to open a new card (for example the alliant cc).