How Creditors View New CLIs

[Iusedtolurk]

Just another one of those questions that pop up in my mind concerning the credit world.

I know that some creditors do not like to see a rash of New Accounts (Hp etc in a short amount of time which at times leads to CLD or other AA) and that is one of the reasons they monitor your other accounts with SPs.

But I would like to obtain views or Data points on how creditors view several CLIs in a short amount of time?

They may not be New accounts but perhaps increase risk due to the availabilty of more credit that could be utilized thus leading to AA.

Should CLI requests that lead to approval also be spaced out?

I realize a number of us enjoy the acknowledgement of better credit (and helping utilization etc) that is solidified with the granting of CLIs.

If I were to app for a few credit cards in a short amount of time (for example 3) I would get hit with a Recently seeking credit penalty but although 3 CLIs would not generate a penalty reason code could it be viewed internally as a negative with some creditors.

[Anonymous]

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@Iusedtolurk wrote:

Just another one of those questions that pop up in my mind concerning the credit world.

I know that some creditors do not like to see a rash of New Accounts (Hp etc in a short amount of time which at times leads to CLD or other AA) and that is one of the reasons they monitor your other accounts with SPs.

But I would like to obtain views or Data points on how creditors view several CLIs in a short amount of time?

They may not be New accounts but perhaps increase risk due to the availabilty of more credit that could be utilized thus leading to AA.

Should CLI requests that lead to approval also be spaced out?

I realize a number of us enjoy the acknowledgement of better credit (and helping utilization etc) that is solidified with the granting of CLIs.

If I were to app for a few credit cards in a short amount of time (for example 3) I would get hit with a Recently seeking credit penalty but although 3 CLIs would not generate a penalty reason code could it be viewed internally as a negative with some creditors.

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@Iusedtolurk if you were to app for a few cards and be approved for at least one, you would get hit with seeking credit code for the HPs AND new account code for the account(s). Alternatively, unless the CLI's were SP, they would also result in the penalty seeking credit code.

with that said, to get to the root of your question, I think the bureaus have a separate algorithm they use to track for bustouts and that is when I think they are most concerned with rising credit limits. And that is mainly with young profiles, I believe. 

i'm not saying they might not be concerned with you adding a quarter million dollars of credit out of nowhere in no time, but I think the major focus for rapidly increasing credit limits applies to young profiles, as they are concerned with bustouts. I wouldn't sweat it, unless my profile was young, imho, unless you're talking serious outlier action. 

[Iusedtolurk]

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@Anonymous wrote:

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@Iusedtolurk wrote:

Just another one of those questions that pop up in my mind concerning the credit world.

I know that some creditors do not like to see a rash of New Accounts (Hp etc in a short amount of time which at times leads to CLD or other AA) and that is one of the reasons they monitor your other accounts with SPs.

But I would like to obtain views or Data points on how creditors view several CLIs in a short amount of time?

They may not be New accounts but perhaps increase risk due to the availabilty of more credit that could be utilized thus leading to AA.

Should CLI requests that lead to approval also be spaced out?

I realize a number of us enjoy the acknowledgement of better credit (and helping utilization etc) that is solidified with the granting of CLIs.

If I were to app for a few credit cards in a short amount of time (for example 3) I would get hit with a Recently seeking credit penalty but although 3 CLIs would not generate a penalty reason code could it be viewed internally as a negative with some creditors.

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@Iusedtolurk if you were to app for a few cards and be approved for at least one, you would get hit with seeking credit code for the HPs AND new account code for the account(s). Alternatively, unless the CLI's were SP, they would also result in the penalty seeking credit code.

with that said, to get to the root of your question, I think the bureaus have a separate algorithm they use to track for bustouts and that is when I think they are most concerned with rising credit limits. And that is mainly with young profiles, I believe. 

i'm not saying they might not be concerned with you adding a quarter million dollars of credit out of nowhere in no time, but I think the major focus for rapidly increasing credit limits applies to young profiles, as they are concerned with bustouts. I wouldn't sweat it, unless my profile was young, imho, unless you're talking serious outlier action. 

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@Anonymous  Although my profile has moved a little past the embryonic stage I am constantly reminded by my first position reason code on basically all scoring models, Length of Time Credit Accounts Have Been Established it's safe to assume overall I am still considered young.

And also at the current top limits I possess I would not be entering in a level of High enough limits to make anyone skittish.

I do recall the reference to Bustouts and also if not mistaken a more indepth explanation of algorithms addressing them.

The credit process is tricky sometimes so I am always looking for those areas that may cause flashing lights and sirens by creditors that could stagnate my progression.

I have been on the steady incline with my credit scores (say for those moments of losing points due to hitting age milestones) and always want to remain vigilant in that accomplishment.

[Anonymous]

Seems my post was removed for some reason. I didn't breach any guidelines and had approval for my site to be in the signature, so here it is again:

<Mod Edit, --UB>

[Anonymous]

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@Iusedtolurk wrote:

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@Anonymous wrote:

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@Iusedtolurk wrote:

Just another one of those questions that pop up in my mind concerning the credit world.

I know that some creditors do not like to see a rash of New Accounts (Hp etc in a short amount of time which at times leads to CLD or other AA) and that is one of the reasons they monitor your other accounts with SPs.

But I would like to obtain views or Data points on how creditors view several CLIs in a short amount of time?

They may not be New accounts but perhaps increase risk due to the availabilty of more credit that could be utilized thus leading to AA.

Should CLI requests that lead to approval also be spaced out?

I realize a number of us enjoy the acknowledgement of better credit (and helping utilization etc) that is solidified with the granting of CLIs.

If I were to app for a few credit cards in a short amount of time (for example 3) I would get hit with a Recently seeking credit penalty but although 3 CLIs would not generate a penalty reason code could it be viewed internally as a negative with some creditors.

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@Iusedtolurk if you were to app for a few cards and be approved for at least one, you would get hit with seeking credit code for the HPs AND new account code for the account(s). Alternatively, unless the CLI's were SP, they would also result in the penalty seeking credit code.

with that said, to get to the root of your question, I think the bureaus have a separate algorithm they use to track for bustouts and that is when I think they are most concerned with rising credit limits. And that is mainly with young profiles, I believe. 

i'm not saying they might not be concerned with you adding a quarter million dollars of credit out of nowhere in no time, but I think the major focus for rapidly increasing credit limits applies to young profiles, as they are concerned with bustouts. I wouldn't sweat it, unless my profile was young, imho, unless you're talking serious outlier action. 

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@Anonymous  Although my profile has moved a little past the embryonic stage I am constantly reminded by my first position reason code on basically all scoring models, Length of Time Credit Accounts Have Been Established it's safe to assume overall I am still considered young.

And also at the current top limits I possess I would not be entering in a level of High enough limits to make anyone skittish.

I do recall the reference to Bustouts and also if not mistaken a more indepth explanation of algorithms addressing them.

The credit process is tricky sometimes so I am always looking for those areas that may cause flashing lights and sirens by creditors that could stagnate my progression.

I have been on the steady incline with my credit scores (say for those moments of losing points due to hitting age milestones) and always want to remain vigilant in that accomplishment.

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@Iusedtolurk so many different profiles to remember, that's right you just crossed over to mature not too long ago didn't you? Yeah I wouldn't be too concerned about it unless like I said you're going crazy with it and being an outlier.

Personally my theory is to have a average credit limit of $12,000 or higher, so it helps the insurance scores as well. Then with a couple/few low-APR/high credit limit ones to carry high Balances if ever necessary, but other than that ... jmho, but it also depends on one's needs. 

[UncleB]

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@Anonymous wrote:

Seems my post was removed for some reason. I didn't breach any guidelines and had approval for my site to be in the signature, so here it is again:

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@Anonymous please check your PMs.

[Anonymous]

I don't think creditors care at all about CLIs that come from SPs.  They have no way of knowing if the CLIs were self-initiated or of the auto variety if there's no HP attached to them.  That being said, it's equally as likely that a handful of creditors gave out auto-CLIs to someone when looking through the lens of a lender viewing a CR.

Also slightly off-topic, but I do think the majority of CLIs out there come automatically and aren't self-initiated.  That obviously isn't the case if you take the small microsample of this forum where many of us hammer SP CLIs frequently, but I'm talking in the grand scheme of things.  If you go talk to 10 random people on the street about increasing their credit card limit, the vast majority that I've come across have absolutely no idea that doing so is even a possibility or how to do it.  This majority therefore in my view likely only sees CLIs when they are automatically initiated on their accounts by the CCC.

[Iusedtolurk]

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@Anonymous wrote:

I don't think creditors care at all about CLIs that come from SPs.  They have no way of knowing if the CLIs were self-initiated or of the auto variety if there's no HP attached to them.  That being said, it's equally as likely that a handful of creditors gave out auto-CLIs to someone when looking through the lens of a lender viewing a CR.

Also slightly off-topic, but I do think the majority of CLIs out there come automatically and aren't self-initiated.  That obviously isn't the case if you take the small microsample of this forum where many of us hammer SP CLIs frequently, but I'm talking in the grand scheme of things.  If you go talk to 10 random people on the street about increasing their credit card limit, the vast majority that I've come across have absolutely no idea that doing so is even a possibility or how to do it.  This majority therefore in my view likely only sees CLIs when they are automatically initiated on their accounts by the CCC.

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@AnonymousMakes all the sense in the world, They have no way of knowing if the CLIs were self-initiated or of the auto variety if there's no HP attached to them.

Personally in my stage of the credit world taking a HP for a CLI is not something I indulge in so at any time when the spirit may come across to request one I do it while files are locked.

[Anonymous]

I hear you.  I'm 0 for 1 when it comes to HP CLIs in terms of what I'd consider to be a successful vs unsuccessful one.  As a result I have never attempted another HP CLI.  Creditors like Chase that almost never give auto-CLIs just means I've got to be content with those limits, as they'll likely never change.