how to use credit cards to earn limit increases

[Revelate]

Responses inline, and welcome to the forums!

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@credituser123 wrote:

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? Yup!  Lenders change their guidelines and their portfolio allocation (mortgage -> CC as an example) all the time based on what they feel will be most profitable among other things including marketing and macroeconomic conditions.

Amex revolvers? are you saying these are known for credit limit increases? Yeah, Amex has been one of the best credit card issuers to credit limit chase with, 3X CLI requests for a soft pull (SP) at known periods of time.

go button mashing every 17th day? Discover currently seems to allow a SP CLI request every 17 days, hence smash that button in their online interface for credit limit luv .

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[Turbobuick]

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@credituser123 wrote:

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?

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If your scores were a barometer of life, there'd be a patient on life support. You don't have leverage to strategize or maneuver. Positive credit history is the best means to get noticed and the amount of risk increased by creditors extended. Establishing history takes time.  

[Anonymous]

Word of advice on Capital. As you can see from my signature line my first unsecured card (3 months ago) was from them. I loved the 1.5%; however, the card was nearly impossible to use.

With a low limit I was making 4-5 payments a month with each being held for 4+ days.

After numerous calls a supervisor with common sense referencedo my first account and cleared payments of 1500 and lifted the holds on 400 payments.

Make your first payment on a Wednesday (if you can). Watch for any auto holds on the payment and call them on Thursday. They will call the bank to verify payment. Do note that if the ACH has not hit your bank they do not care what the available balance is in your accounts when they are on the conference call with your bank.

Good Luck!

[takeshi74]

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@credituser123 wrote:

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.

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Usage may help in some cases but the primary factors are credit and income.  Usage will not overrule those factors.

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@credituser123 wrote:

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

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Given that credit is a primary factor it's the same as buildingrebuilding credit.  This link doesn't cover everything but work on the bigger factors first.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

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@credituser123 wrote:

what do you mean current FOTM CLI givers?

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Flavor Of The Month.  I.e. the creditors that seem to be giving out CLI's.  Part of the equation is the underwriting critieria of the creditors which can and does vary from creditor to creditor.  It can even change with a given creditor hence the FOTM.  The problem with relying on this is that these are unknowns and can change at any time -- especially as forum users jump on and take advantage of a situation like that.  If you watch myFICO you'll see that X creditor is doing Y, everyone jumps in on it and then whatever Y was ends up getting killed.

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@credituser123 wrote:

How are people getting their credit limits raised so dramatically?

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Don't try to rely on quick fixes.  Your credit has to support a higher limit.

[kdm31091]

First, don't rely on the "trends", i.e. "Oh, Discover's giving out credit like candy lately!" Or a few months ago "Get a Venture, you'll get a huge limit!"

Limits and CLIs are based on your file and income. While there may be situations where trends appear, it does not mean you are guaranteed anything. Limits which you are able to achieve will be limited by your income at a certain point.

All you can do is use the cards responsibly. Do not spend more than you can afford. Use and pay them off every month. Show and build a history. Over time you will likely be able to get CLIs. There is no shortcut or quick fix.

[Anonymous]

I have a different opinion on Cap One.  They've been great to me.  I started out with 500 limits on two cards and now I have 3 that are at 1500 each including a spark business. Each of them I asked for a cli at the 3 month mark and was raised to the 1500.  Still have my credit steps increase coming in July.    Never had any payments held and I pay large payments 2 or 3 times a month.   The kicker is I had 2 accounts with them that charged off a little over 4 years ago. I have paid one of the chargeoffs but not the other one.  So my experience has been awesome.  Slowly getting back to where I used to be and slowly paying off old debts.  It's definitely a struggle but well worth it in the end.  

[Anonymous]

Oh, and my scores were around 595 when I started with them back in January and are knocking on the 660 door now.  So definitely helps with the credit score rebuild and the possibility of higher credit lines down the road.  

[Anonymous]

Pardon my ignorance: with Cap One, what are you saying about them holding payments for 4 day's ??? What's that about ??? Is Cap One doing like Credit One whereby if you make a payment, your available credit doesn't get raised until the payment clears ??? I assume this is strictly for secured cards, correct ??? I have a Credit One card I'm closing prior to the next AF hits but that's how they work. It's terrible.

[Anonymous]

I've never had cap one hold any payments from me. Credit one definitely does though.

[Revelate]

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@kdm31091 wrote:

First, don't rely on the "trends", i.e. "Oh, Discover's giving out credit like candy lately!" Or a few months ago "Get a Venture, you'll get a huge limit!"

Limits and CLIs are based on your file and income. While there may be situations where trends appear, it does not mean you are guaranteed anything. Limits which you are able to achieve will be limited by your income at a certain point.

All you can do is use the cards responsibly. Do not spend more than you can afford. Use and pay them off every month. Show and build a history. Over time you will likely be able to get CLIs. There is no shortcut or quick fix.

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I would suggest that UW trends seen on this forum are absolutely worth paying attention to.

Yes there are other things which will do into play, but it's shortsighted not to factor in both longstanding policies and recent experiences when playing in the second and third quarter of the credit building game.  Honestly why would you not?  Why would you not take advantage of shortcuts when available?