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How long to wait after paying down cards to apply for new ones?

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How long to wait after paying down cards to apply for new ones?

How long to wait after paying down cards to apply for new ones / ask for CLI?

My utilization has been at 100% for over a year now, but I will now pay all cards off in full with the goal of getting further credit cards/increases. This will make my FICO skyrocket, but I’m wondering how long I need to wait for lenders to not deny me for “high utilization was too recent”, which I’ve seen before. After spending 12 months at 100%, do they want to see something like 3 months at low utilization before approving me again?
Message 1 of 11
10 REPLIES 10
Established Contributor

Re: How long to wait after paying down cards to apply for new ones?

I think the bureaus just report what is current in terms of cc balances as long as they are open and being paid.

As for how long to wait, honestly I'd wait until you are able to manage the cards you have successfully over a period of time.
The reason that I say this is that the hole you are able to climb out of with your current limits will be easy compared to upper limits that you may not be prepared for.

Just my two cents. 👍
Starting Score: EX 641 TU 631 EQ 669
Current Score: EX 714 TU 718 EQ 713 (EQ9 735)
Goal Scores: 750


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Message 2 of 11
Established Member

Re: How long to wait after paying down cards to apply for new ones?

Ok, I’d hope so. I have gotten denial letters in the past from Amex specifically stating “time since high utilization too recent” - now that I think of it, they were probably speaking to my high utilization of THEIR product to me specifically and not my other cards too; does that sound reasonable? Anyone else ever run into this, and how long did you have to wait before being approved again/for CLI?
Message 3 of 11
Community Leader
Senior Contributor

Re: How long to wait after paying down cards to apply for new ones?

Can you provide a timeline of payoff? Will all cards be at 0% except one and that one less than 8.9%? Or will all cards still carry a balance? If yes, will it break down at <48.9%, <28.9%, <8.9%?

IMO, if all CCs are PIF except one, I would wait 6 months and use cards sparingly. If all cards are carrying a balance, I would wait 6-12 months before requesting a CLI.

Just my 2cents too
GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 4 of 11
Established Member

Re: How long to wait after paying down cards to apply for new ones?

I can pay them all off immediately and leave one at 1-5% usage.
Message 5 of 11
Community Leader
Senior Contributor

Re: How long to wait after paying down cards to apply for new ones?

Excellent! If it were me, I would wait at least 3 mos and closer to 6 mos.
GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 6 of 11
Super Contributor

Re: How long to wait after paying down cards to apply for new ones?


@theguyincharge wrote:
How long to wait after paying down cards to apply for new ones / ask for CLI?

My utilization has been at 100% for over a year now, but I will now pay all cards off in full with the goal of getting further credit cards/increases. This will make my FICO skyrocket, but I’m wondering how long I need to wait for lenders to not deny me for “high utilization was too recent”, which I’ve seen before. After spending 12 months at 100%, do they want to see something like 3 months at low utilization before approving me again?

1. At present FICO's algorithms base utilization on a snapshot of a moment in time, and do not take into account "trending" data such as how long you were maxed out  and how long you weren't.

 

2. So you should pay them all off, letting one report a small balance each month before paying it off.

 

3. Once they've all reported, see what your FICO scores are and be guided accordingly.


Total revolving limits 720500 (594000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 7 of 11
Frequent Contributor

Re: How long to wait after paying down cards to apply for new ones?

To expand on what others have said, if you plan on applying for credit products from different creditors than you already have, you could apply as soon as the lower UTIL has reported to the bureaus.

 

On a related note, do not be surprised if some of your current creditors balance chase you. If you've been at 100% util for a year, that is a very real possibility.


Message 8 of 11
Valued Contributor

Re: How long to wait after paying down cards to apply for new ones?

I agree with the above, and I think I would wait a minimum of six months to establish a pattern of responsible usage not only for lenders to see, but to start developing the habits you’ll need to control larger lines of credit. Large limits and multiple new cards will not make your scores skyrocket. The responsible use of those limits is what will grow your scores.


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5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020
(Lol so much for that grand plan...)
Message 9 of 11
Established Contributor

Re: How long to wait after paying down cards to apply for new ones?

I agree completely with the 6 month rule I know some Cards do give an option to CLI after 61 days BUT be sure to research which ones will do a HP when you ask and which ones will do an Automatic CLI for you!    Avoid the HP if possible to help you raise your score and show responsible use Smiley Very Happy

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Message 10 of 11
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