Would it ever be smart to NOT accept a CLI?

[itsxluigi]

I'm paying off 3 of my credit cards right now, running like an 85% util total. Just reading around the forums, I saw someone mention a Capital One CLI and how people "hit the luv button every few days just for the heck of it". I know my util is pretty high, but I decided to hit the button, just for the heck of it. Don't plan on using the credit, but I figure every little bit helps. They offered me an increase from $2000 to $2150. $150, it's not alot, but its something. It then gives the option to take the increase, or "no thanks, leave it as it is". Is there a CLI amount that might be "too small" to accept? When would people ever say "nah, leave it like that." To me, I'd think every little bit helps, but I don't know. Maybe I'm missing something.

[kdm31091]

Sometimes, you may feel the CLI causes you to venture towards the "too much available credit" vs income category, and that's not somewhere most people want to be. In that case it can be better to stay where you are. (This happens sometimes with Amex 3x CLIs, and people end up requesting slightly less)

But for your specific situation? I'd say you're totally fine to accept it if you want it.

[Anonymous]

$2150? $150 CLI?

Id decline it and close the card.

[Anonymous]

If you accept a Capital One CLI then you can't get another CLI for 6 months.

[Anonymous]

Auto CLI is one thing but when you request and they come back with a mickey mouse CLI..

[itsxluigi]

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@Anonymous wrote:
Auto CLI is one thing but when you request and they come back with a mickey mouse CLI..

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I actually got an auto CLI from them maybe 8 months ago, from $500 to $2000. I just had some unforeseen expenses since then which brought my util up a bit on a few of my cards. I was actually a little surprised to see the $150, I honestly figured it would have just been a denial.

[Anonymous]

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@issues636 wrote:

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@Anonymous wrote:
Auto CLI is one thing but when you request and they come back with a mickey mouse CLI..

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I actually got an auto CLI from them maybe 8 months ago, from $500 to $2000. I just had some unforeseen expenses since then which brought my util up a bit on a few of my cards. I was actually a little surprised to see the $150, I honestly figured it would have just been a denial.

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If the CLI is satisfactory to you then accept it, If not, feel free to decline it and see if they'll offer something better next time.

[itsxluigi]

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@Anonymous wrote:

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@issues636 wrote:

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@Anonymous wrote:
Auto CLI is one thing but when you request and they come back with a mickey mouse CLI..

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I actually got an auto CLI from them maybe 8 months ago, from $500 to $2000. I just had some unforeseen expenses since then which brought my util up a bit on a few of my cards. I was actually a little surprised to see the $150, I honestly figured it would have just been a denial.

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If the CLI is satisfactory to you then accept it, If not, feel free to decline it and see if they'll offer something better next time.

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I accepted it, not really thinking, before I even started this thread. I should have waited until I paid down some more cards (2 will be paid off within the next month) and tried again. Didn't realize Capital One had the whole 6 month wait between CLI's, although I definitely should have figured there would be SOME kind of wait inbetween. I figured I'd accept it, pay down those cards, and try again in a month for ANOTHER. Oh well, lesson learned. Really need to start coming to these forums more and learning the ins and outs of all the different banks and card issuers.

[Existentialist]

The short answer is yes... absolutely. Heres the thing: the issue isnt with the CLI itself - its whether a CLI is going to be beneficial to your overall credit goals. Notice my usage of the word 'overall' as opposed to 'immediate'. On the surface I understand the mindset that says an increase even a small one is better than none. This isnt necessarily true however. Its akin to accepting a smaller payout now versus a potentially larger one down the line so that real the ? then becomes... how patient are U?

U stated your total util is running about 85% currently. Thats fairly significant so although U may qualify for addtl CLs the reality (in the case of the $150 U recently received) is that a CLI that small is NOT actually working for U - more like... its just there. One of the points I try to stress when discussing credit matters is just bcuz u CAN do something doesnt mean that U should. I will submit (b4 the ? is raised) that a significant enough CLI could prove beneficial. That much goes without saying. But its about understanding what your present situation dictates.... and right now you're @ 85% util. See where this is going?

There would be no point in tempting fate even if a higher CLI were offered when its clear your focus should be decreasing your UTIL. Its easy enough to let a $150 CLI sit to the side but could U do the same if the CLI was $1500 instead? Perhaps U could but why chance it? What many fail to acknowledge is that in the credit-game-of-life, planning, timing and patience is key. And in this particular game one can ill afford to lose. And although I get that most ppl will accept a CLI regardless I'd be remiss in pointing out that just bcuz its what many would do that its not necessarily what U should do. As I said, consider the state of your overall credit goals first. If its available to U now (CLI) it stands to reason it will be available later (barring a total meltdown which I assume U arent going to let happen... right?) and in larger form.

There used to be a game show called 'Press Your Luck'. In this (credit) game however I'm going to suggest U not (but I aint gonna lie the whammys on there were hilarious as heck).

Good ? and best of luck.

[Anonymous]

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@issues636 wrote:

I'm paying off 3 of my credit cards right now, running like an 85% util total. Just reading around the forums,

Maybe I'm missing something.

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Did you miss something about keeping your utilization below 30%?  

You have over 15K in credit, that's like 14K of debt.

Stop buying cool stuff and pay that puppy down