@Anonymous wrote:
@CH-7-Mission-Accomplished wrote:
Based on what I have read here, lenders don't start to decline for too much available credit until you are at least at one year's annual income, and many don't care until you are 2 times or even 3 times. This varies by lender with some more concerned than others
Thanks so much, CH! That all makes a lot of sense. And based on what you wrote that I quoted, I'm fine.
I have already been unintentionally doing what you suggested. My first and major priority is my Amazon card. It has just an $800 limit. In December, I had to pay it down twice before Christmas because I was bumping into the limit. And most months I've been using much of that limit (and then paying down to less than $50 before the statement closes). So I think I've adequately shown them I'll use it.
I'm about a month away from 6 months with the card, so my plan was to wait until then and then apply for the CLI.
What strategy should I use. Should I click the button first (expecting that I'm going to take what they give me and then ask for more another way)? Should I use chat? Or should I just start with Credit Solutions?
I'd like a $20,000 limit, and based on what you said, my income (and I think my scores) support that. Is that reasonable/wise to ask for? I'd be happy with $10,000, actually, and that would more than cover what I could ever imagine putting on the card in a single month.
With the Amazon store card from synchrony, you can call as soon as you receive the card and ask them for 5K and they may give it or give 3K or say no.
With synch, you can get CLI's every 4 months, so after every fourth statement cuts.
Always, always, always, always, always call the backdoor number (credit solutions). It's a soft pull and they give out higher limits and say yes when the luv button says no and chat says no.
With the synch cards (Amazon, Lowes, Walmart) you don't really have to show much use to get those big CLI's. For them it's what they are willing to give you issuance, on immediate recon, and then a phone call every four months. You don't have to impress them with massive usage.
You could probably put through $200 a month on Amazon card and still get the maximum CLI's. It would be reasonable to go from 1K to 3K to 5K to 10K, and more if you want over time, every four months. This is also true for Lowes & Walmart.
Over 24 months it's easy to get Lowes up to 17K to 35K based on your income.
Most Amazon cards I've seen are topped around 10K, but I'm sure some do better.
For some reason they are more stingy on Walmart. So people get $150, then $800, then $1500, then $2800, then $3600, then $5k.
People love Lowes to pad utilization.
If you get a CareCredit account, be aware that a request for a CLI will always be an HP. The others are soft pulls.
My Lowes is at 10K, and I am cool with that since my limits now equal my annual income. But a good strategy would be to get a Lowes card up to 35K and then over time replace that 35K with a NASA FCU or Penfed FCU card of the same limit, then cut Lowes to 10K or even 5K. This is my plan.
My Walmart started at $400. They were slow to give me CLI's for the first year. Just paltry amounts. When my scores (TU) hit 680 I asked for and got 5K. I could have likely gotten more, but I did not want anymore.
If somebody had 75K of annual income and 150K of total credit limits, then I would start prioritizing my cards and getting rid of any Comenity or other crappy store cards, and lowering credit limits on things like Lowes with 35K, so that I could get the 10K to 30K limits on good cards.
Also keep in mind that one lender, probably a credit union, will tell you that you are being declined for pyramiiding debt, which means too much new available credit, but don't for a minute believe that applies to all lenders, If you were to react to one lender's comments on this, you would needlessly close cards. They may be saying they are just not that into you. You close half your cards and they come back with another reason to decline you. Just keep that mind.
My personal thinking is I want to keep 10 or credit cards. This way when I open a new card, my AAofA would only drop by one year if AAofA was 10 years when I opened one new card. So I'm at 9 years instead of 10. No big deal. Had I had five cards and opened one new card, my AAofA would drop by 20% instead of 10%.
But for me, 10-12 cards is max. I can manage that, but no more. But that's my personal choice and others want 40 cards and some want three. It is a personal decision.
