how to use credit cards to earn limit increases

[credituser123]

i've read a couple of times in the rebuilting credit forum that there is a specific way to use cards to earn limit increases.  I currently have one toy limit card and one secured card.  planning to open another secured card in the next couple of days to build a relationship with my local credit union.  my question is how do i best use the cards in order to acheuve credit limit increases.  - maybe i need to get a real unsecured card to apply these tactics, please let me konw if that is the case, but regardless, my main question is as to strategy.

I've read that some people are doubling their CL every few billing statements.  im figuring keep utlization under 20% on each card.  Maybe make a large number of purchases each month followed by immediate payments so that none are carrying a balance.  Other than that, is there anything else that i can do?

How are people getting their credit limits raised so dramatically?

[Anonymous]

you can't really get a higher limit if you keep getting secured cards fhouvh

[Anonymous]

though*

[Creditaddict]

At this stage of the game, use the card and Pay it in full and work on the baddies on the report... don't worry about how much you use, when you pay, etc... Just PAY IN FULL by due date and use it!

[credituser123]

yea i get that... but what's the strategy once i get some unsecured cards?

[Revelate]

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@credituser123 wrote:

yea i get that... but what's the strategy once i get some unsecured cards?

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Run your financial life through your cards and then do some research on the current FOTM CLI givers at that time (this month would be Discover) and the usual stalwarts like Amex revolvers, pick one or two of those up and wrap your arms around it and go button mashing every 17th day in Discover's case as an example.

It's not official policy but a lot of people get new approval limits at the size of their current limits, so building up limits on one card and then getting approvals near or at that level later is a solid plan. 

Also be flexible and take advantage of any FOTM new limit approvers too, vis a vis soon as my mortgage closes I'm sufficiently inebriated as a result of my celebration, I'm taking a shot at a Cap 1 Venture in hopes of basically doubling my top limit.

[credituser123]

thanks for the reply but im very new to this and dont understand everything you said...

what do you mean current FOTM CLI givers?  are you saying that different points in time certain issuers are more prone to issue increases?  SO there are external factors besides just my history with them?

Amex revolvers? are you saying these are known for credit limit increases?

go button mashing every 17th day?

[Anonymous]

Everything about CLIs is speculation and nothing is a guarantee. Yes there seems to be a new policy with Discover that allows POSSIBLE credit limit increases every 17 days. I'm sure most of the CLI policies are far more restricted regarding secured cards. If all you can get are secured cards at the moment, I would not worry too much about CLI's and worry more about getting the baddies removed from your credit reports(I assume you have baddies due to your scores) and building your score by keeping all your accounts in good standing and not paying late. CLI's are granted based on the credit profile the creditor sees. If you have a bad profile, don't hold your breath for CLI's. The best you could probably do is to just use your cards, put as much through them as you can, and let your scores grow. Sub 600 scores are bad scores, and I wouldn't expect much generosity until you get that fixed.

[credituser123]

ok, i actually just got approved for a $500 unsecured card from capital one.  now....how's best to use it?  should i charge $100 in gas every week and make a payment within minutes after charging it?

[Anonymous]

Yes, run as much as you can through it and show that you can PIF. When I first started with Capital One, I received the QS1. I only received a 300 limit. I used that in a few days and paid it off. I had multiple payments with them every month, PIF every time. They still denied me any increases, and have only given me my credit steps increase on that card. That only took me to 500. I decided to apply for a Venture card right after my credit steps CLI and was approved for 3k.  Not a ton, but I took it due to being very new to revolving credit, and was grateful to have it. I assume the only reason they approved me was due to my outstanding history with them, and the fact that I had 2 auto loans that were paid off perfectly. It was a short history with them, but I showed I could definitely handle what they gave me plus more. I'm not joking when I say that having a sub 600 score is bad, you should consider yourself lucky to get the limit that you did. I had 650 scores and was only approved for 300. That was due to having no revolving credit experience. I wish you much luck with your future credit endeavors.