CLI Question(s)

[Drew]

Hi All,

I have a few questions about the best course of action for obtaining more frequest CLI's. I've had a few cards for quite some time, but my credit line's are pitiful when you consider my income and average daily spending.

1. Is it better to use a credit/charge card more frequently, while making payments more frequently to keep the statement balance under 10%?
2. Is it better to pay off a credit/charge card every month, so that no balance is carried over?
3. Is it better to keep requesting them repeatedly or wait until a credit line appears automatically?

Thanks in advance.

[jamie123]

Answers to your questions:

1. It is best to use all your credit cards gently every month. You need to schedule your payments so that only 1 card reports a balance every month and all the rest of the cards report zero.

2. Yes and no. You need to read the forums a bit more on this topic. There is a HUGE difference in your scores regarding the actual amount that is reported  as balances on your CC to the CRAs each month. This kind of refers to my answer of question #1.

3. It is best to request a CLI every 6 months. Don't wait for the lender to give it to you automatically.

Now...To answer the question that you didn't ask.

There is a HUGE difference in the frequency and size of CLI depending on who the lender is. Some lenders give big CLIs often, others never give CLIs and you are wasting your time trying to get one.

Now for my question.

Who are the lenders that you are trying to get CLIs from?

[RobertEG]

A request for a CLI is a reqest for additional credit, and thus provides permissible purpose for an inquiry that can be reported as "hard."

If they report a hard inq. for each requested review for a higher CL, it could affect your score for a year.

If they pull your CR to evaluate the CLI, they will most likely base their decision on their overall view of your CR, and not just their account.

While your account with them may show low util, if other debt suggests an increased risk, that might be a more significant factor than their current account with you.

[Drew]

Thanks for the replies.

The creditor I've attempted to get an increase from is Capital One. I have been stuck at a 1250.00 limit for over a year now and rarely use this card because of that.

I have also applied to Chase Slate and get approved for a small limit of 1500.00.

I just don't get it. My credit is around 680 or higher with all CRA's, and it seems like these low limits are preventing me from hitting the 700's.

[OhioCPA]

Low limit cards don't impact your score, its the utilization on those cards that affects FICO scores. Having $1,000 total balances on cards with total credit limit of $1,500 will have a similar impact as $10,000 total balance on cards totalling $15,000. If your cards are holding your score back you need to lower your utilization on those cards. The rule of thumb is no more than 9% on one card and zero on the rest. It isn't clear from your post, but having a third credit card might help your score as well.

[Drew]

My utilization is under 5% for all cards every month. Most of the cards are reporting a $0 balance as it stands.