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Wondering how to keep all credit cards happy

ByrdMan
Moderator Emeritus

Wondering how to keep all credit cards happy

I have historically not been one to apply for a lot of credit cards. Recently, I refinanced my mortgage, so I finally app'd for my first new card in over three years. I got SW Priority Card and AmEx Everyday Card. I fly SW very often (five or six times per year), not exclusively, but more often than not, thus the Priority Card. I plan to use this card ($26.7K CL) for the majority of my daily purchases. I got the AmEx Everyday for use at grocery stores ($15K CL). I have read about AmEx cutting CLs in half on this board. I'd be concerned about AA from AmEx and Barclays due to lack of use. I'm always amazed and impressed by those who have 15 or 20 cards with $150K+ in CLs. How does one keep all of their cards happy and not lose CLs?


Message 1 of 22
21 REPLIES 21
Yes-Its-Me
Super Contributor

Re: Wondering how to keep all credit cards happy

To show usage and not have the limits slashed, do you have any small charges like for example netflix?  If you do, just have it set up automatically so that, the small charge goes to it monthly to keep it active.

 

Or you can just use the card once every six months to keep it active.

Message 2 of 22
ByrdMan
Moderator Emeritus

Re: Wondering how to keep all credit cards happy

I have all that set up now. I just am concerned about only using a small fraction of the CL and end up getting slashed like some here have seen with AmEx. Barclays was my previous daily driver card, but SW will now be. Barclays is going to go from several thousand per month used to a few bucks. I always PIF each month, but I do like the idea of having the CL in case I need the fire power.


Message 3 of 22
Yes-Its-Me
Super Contributor

Re: Wondering how to keep all credit cards happy


@ByrdMan wrote:
I have all that set up now. I just am concerned about only using a small fraction of the CL and end up getting slashed like some here have seen with AmEx. Barclays was my previous daily driver card, but SW will now be. Barclays is going to go from several thousand per month used to a few bucks. I always PIF each month, but I do like the idea of having the CL in case I need the fire power.

There isn't a definitive way to prevent that from happening thus, credit line not getting slashed as these lenders are very unpredictable.  Based on what you have posted, you seem like a good customer and they might just let your credit line be unless something changes in your credit report. 

 

Don't over think it.  If you are truly worried, maybe every three months charge something big to the cards....

Message 4 of 22
bz386
Frequent Contributor

Re: Wondering how to keep all credit cards happy

If you don't use a card (enough), why would you be worried about the credit limit getting slashed? If you spend $5 per month on a card with $30000 limit, you don't need that $30000 limit. The obsession on this list with high credit limits is bordering on ridiculous. Use your cards in whatever way is useful to you and let the lenders figure out what credit limit they want to give you. More than likely all your worries are unsubstantiated.

Message 5 of 22
pizza1
Community Leader
Super Contributor

Re: Wondering how to keep all credit cards happy

@ByrdMan ...WHOA!! Just out of the blue one of our M.E.'s  posts??? Love it!!! How have you been?

 

ok, back to you questions. For me, I rotate 95% of my monthly spend amoungst my higher limit cards, so every few months they see alot, the other months not so much, but I do use them all every month. 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 6 of 22
UncleB
Moderator

Re: Wondering how to keep all credit cards happy


@bz386 wrote:

If you don't use a card (enough), why would you be worried about the credit limit getting slashed? If you spend $5 per month on a card with $30000 limit, you don't need that $30000 limit. The obsession on this list with high credit limits is bordering on ridiculous. Use your cards in whatever way is useful to you and let the lenders figure out what credit limit they want to give you. More than likely all your worries are unsubstantiated.


I have several relatively large credit lines that are only used occasionally, but on those occasions they are needed.  Wanting to make sure those credit lines are there when I need them to be isn't ridiculous at all.

 

Some lenders are more sensitive than others, so the OP's question is valid and his concerns are warranted.

Message 7 of 22
GloeJohn
Contributor

Re: Wondering how to keep all credit cards happy

No need to worry about it too much.

 

I am one of those people you mentioned (150K+ total CL) and don't spend much (monthly total CC payment typically less than 2k ).

 

Only thing I try to do is to make sure that I put something (might be $5) on each every year.

 

No issuer (amex, chase, citi, or discover) has lowered my CL yet. Their risk control dept seems to be more worried about people who might not pay them back than people don't spend enough. Would be interesting to hear if anyone have stories of certain issuer CLD stating a reason of 'little usage'.

 

Also, as already mentioned above, the impact of a CLD seems (to me as well to be) very minimal anyways, because:

0. It is unlikely for you to need the CL if the issuer find 'load factor' alone justifies CLD.

1. It is also unlikely for all banks to CLD you in sync simply due to this reason. 

2. Most cards nowadays (visa signature, infinite, and of course any charge card) are NPSL and will allow once in a while big charges (higher than the stated CL if one is stated) to go through (sometimes even without human override) provided you've been using credit responsibly and the spending pattern is considered reasonable (i.e. something like charging $30000 at a supermarket is not)

 

 

Message 8 of 22
Revelate
Moderator Emeritus

Re: Wondering how to keep all credit cards happy

Whoa long time Byrdman good to see you!

Anyway everyone else’s point is basically correct: drop some random recurring charges if you have them or otherwise take them out for a Starbucks run or similar every six months or so.

Right now the credit market is still all sunshine and rainbows (mostly, Amex reallocation of lines not withstanding) and until we see a recession or other financial crisis I don’t expect to see much in the way of credit portfolio tightening in the current environment... maybe if interest rates start going down and banks start refinancing every mortgage they can again, maybe.

I am somewhere north of 175k in total personal revolving CL now, but really I only spend maybe 3k/month average 95% of which are on two Chase cards, and PIF and haven’t had a problem with a lender-initiated CLD yet.

Have to say though with the APR’s on rewards cards if there is a situation where I can’t write a check for it (or don’t want to, out of work cash hoarding for example) I self-refinance that with a quickness to my HELOC.

Ultimately I could make do with my old goal number of 50k CL but after a point approvals of the 20/25 and even 30k variety have been falling out of the sky in my semi-limited apps over the last few years.



        
Message 9 of 22
wasCB14
Super Contributor

Re: Wondering how to keep all credit cards happy

The cards on which I actually care about my CL get plenty of natural use. If a low-spend card got a CLD, I'd be okay with it.
Spend: BofA PR + WWFCR, BBP, Schwab Platinum, CFF+CF, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
SD/AAoA Ballast: Arrival, CFU, DC
Upgrade/downgrade games: BCE, EDP
SUB: JetBlue, Amex Platinum
Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 10 of 22
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