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Decline Auto CLI in favor of applying for credit elsewhere?

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Decline Auto CLI in favor of applying for credit elsewhere?

Does a recent unsolicited increase in credit negatively impact future applications with other creditors? My Discover card recently increased my CLI. I would rather have the CLI with my other Cap 1 card with the lower interest rate. I had always assumed that any new extension of credit works against you if you apply for more or new credit with another institution. Are auto CLIs different? Wondering if I should decline the CLI on the high interest card in favor of a chance of a CLI with another. I don't really need a CLI in any event, but if I'm going to be given one I'd rather it be with the lower rate card or a new card altogether. I'm guessing since there was no request for the increase there would be no hard pull, but i also thought any new extension of credit aggravates any new application for credit elsewhere. Am I wrong?


Someone asked a similar question "Is there any reason to ever decline an auto CLI?" ten years ago, but the site won't let me reply to it or otherwise continue the discussion there.



Message 1 of 3
Super Contributor

Re: Decline Auto CLI in favor of applying for credit elsewhere?

Curiously, it may help your chances at CLIs with other issuers more than it hurt them.  There is a conjectured Keeping Up With The Jones effect, where once one issuer extends you a high CL, then others are sometimes willing to use that as a yardstick for the appropriate size of a CL, either via a CLI or as the standard for a new credit card.  (Assuming your scores are high, no derogs, decent income, etc.)


I have no real way to say whether that might be true, except that my cards were stuck at 10k for a while.  When I heard that Amex would often triple your CL, I got my Blue Cash card to go to 25k.  Suddenly (or so it seemed) issuers seemed much more willing to give me a high CL with new cards.  My recently approved Chase Sapphire Preferred came with a 25k CL, or something like that.  And they are giving me these high CL additions to my credit limit when my total CL is 150% of my gross annual income.  No end in sight to these silly things, though like you I am not angling for it.  Just seems to happen.

Message 2 of 3

Re: Decline Auto CLI in favor of applying for credit elsewhere?

Oh terrific. That makes sense! Thanks I feel better about just leaving it alone. Ironic that my first reaction wasn't gratitude to the creditor. I get used to being suspicious and pessimistic I guess. Ha

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