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Seeking advice on how to improve credit when utilization is high

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Rogue46
Established Contributor

Re: Seeking advice on building credit when utilization is high

I just read through all 150 posts in this thread and somehow new from the original post he would make it.  Congratulations to you! You should be proud of yourself!  I love reading stories like this!





Message 151 of 163
LooksAreDeceiving
Contributor

Re: Seeking advice on building credit when utilization is high


@Expansion wrote:

CELEBRATION! 

 

Just checked my Fico8 EXP on AmEX

and I have breached the threshold into 'VERY GOOD'!!!!!

740 BABY!!!!!!!!! 

 

given that a year ago that score was 685, and had lingered in the mid to high 600s for years, I am ECSTATIC. 

 

Thank you EVERYONE for helping me on this journey.  @tcbofade  @K-in-Boston @FinStar @SouthJamaica and everyone else!


Just wanted to let you know that I appreciate you sharing your story and congratulate you on your remarkable progress.  I also have utilization issues with my credit and your experiences and advice that you've been given have been useful in determining my next steps.

Message 152 of 163
Expansion
Regular Contributor

Re: Seeking advice on building credit when utilization is high

Thank you so much @LooksAreDeceiving !  I'm so glad to hear that this thread has been helpful to you.  It's nice to "meet" you here!

 

 

Message 153 of 163
Expansion
Regular Contributor

Re: Seeking advice on building credit when utilization is high

Question about Discover CLI/BT strategy:

 

My discover card is currently under 50%.  The balance transfer intro rate is expiring soon.  

 

Two weeks before it expires, I'm planning to transfer the Discover balance over to another card which has 0 BT fees.

 

And then use the *new* discover BT offer to transfer from the other card back to Discover.

 

(I did this before and it worked great.)

 

1.  The current "new" Discover offer is not great - only 10 months, probably the shortest they've ever offered. 

 

Every other time I've let it expire, they've offered me a new one immediately. 

 

But this time, when I'm actually planning to use it (so I can get 0% without opening a new card), it's only 10 months instead of 12 or 15.

 

My sense is to just take the 10 months, instead of letting it expire and then maybe not getting a new offer and having to scramble to move the balance elsewhere.   On track?

 

2.  It occured to me that I could ask for a CLI from Discover and then have more space to use to transfer other balances to this card also.

 

Should I ask for the CLI increase *while* the Discover card has a balance?

 

or after I transfer the Discover card balance and it has 0% utilization?

 

As always I look forward to your wisdom and insight here Smiley Happy

 

Also celebrating that these are much more fun questions than when I started this thread!!!!

@tcbofade @K-in-Boston @FinStar @SouthJamaica @bizcredit11 @M_Smart007 

 

 

Message 154 of 163
SouthJamaica
Mega Contributor

Re: Seeking advice on building credit when utilization is high


@Expansion wrote:

Question about Discover CLI/BT strategy:

 

My discover card is currently under 50%.  The balance transfer intro rate is expiring soon.  

 

Two weeks before it expires, I'm planning to transfer the Discover balance over to another card which has 0 BT fees.

 

And then use the *new* discover BT offer to transfer from the other card back to Discover.

 

(I did this before and it worked great.)

 

1.  The current "new" Discover offer is not great - only 10 months, probably the shortest they've ever offered. 

 

Every other time I've let it expire, they've offered me a new one immediately. 

 

But this time, when I'm actually planning to use it (so I can get 0% without opening a new card), it's only 10 months instead of 12 or 15.

 

My sense is to just take the 10 months, instead of letting it expire and then maybe not getting a new offer and having to scramble to move the balance elsewhere.   On track?

 

2.  It occured to me that I could ask for a CLI from Discover and then have more space to use to transfer other balances to this card also.

 

Should I ask for the CLI increase *while* the Discover card has a balance?

 

or after I transfer the Discover card balance and it has 0% utilization?

 

As always I look forward to your wisdom and insight here Smiley Happy

 

Also celebrating that these are much more fun questions than when I started this thread!!!!

@tcbofade @K-in-Boston @FinStar @SouthJamaica @bizcredit11 @M_Smart007 

 

 


I'm ok with your doing a no-fee balance transfer to pay off the Discover balance, since the jig is up in 2 weeks anyway, but I don't think you should then take out a new Discover CLI -- and pay a new balance transfer fee -- to move it back.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 155 of 163
tcbofade
Super Contributor

Re: Discover credit line increase/balance transfer strategy

I don't know the exact answer, or the exact timing of your statement... but if it is an option, I would pay the card off, let a statement cut with a zero balance, and then request a CLI.

 

...once CLI is approved or denied, then proceed with the next balance transfer.

 

Good luck!

 

Edit:  I believe Discover will approve or deny a CLI request when you do have a balance and they will approve or deny when you do not have a balance.... I don't believe that a balance has any bearing on their CLI decision.

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 156 of 163
Jordan23ww
Valued Contributor

Re: Discover credit line increase/balance transfer strategy

Going off my own personal experience I've never gotten an increase from Discover while having a $0 balance.  I did a balance transfer in January and have since gotten 3 increases

in the last 72 days ($3000 each time/$9000 total since January). So I say it's probably better to ask while you still have a balance.  

      


Message 157 of 163
Expansion
Regular Contributor

Re: Discover credit line increase/balance transfer strategy

Thank you @tcbofade , I think I can do that!  That's a good idea.  I always appreciate your input Smiley Happy

Message 158 of 163
Expansion
Regular Contributor

Re: Discover credit line increase/balance transfer strategy

Thank you @Jordan23ww , that's good to know!  And it's nice to "meet" you here Smiley Happy

Message 159 of 163
Expansion
Regular Contributor

Re: Seeking advice on building credit when utilization is high


@SouthJamaica wrote:

@Expansion wrote:

Question about Discover CLI/BT strategy:

 

My discover card is currently under 50%.  The balance transfer intro rate is expiring soon.  

 

Two weeks before it expires, I'm planning to transfer the Discover balance over to another card which has 0 BT fees.

 

And then use the *new* discover BT offer to transfer from the other card back to Discover.

 

(I did this before and it worked great.)

 

1.  The current "new" Discover offer is not great - only 10 months, probably the shortest they've ever offered. 

 

Every other time I've let it expire, they've offered me a new one immediately. 

 

But this time, when I'm actually planning to use it (so I can get 0% without opening a new card), it's only 10 months instead of 12 or 15.

 

My sense is to just take the 10 months, instead of letting it expire and then maybe not getting a new offer and having to scramble to move the balance elsewhere.   On track?

 

2.  It occured to me that I could ask for a CLI from Discover and then have more space to use to transfer other balances to this card also.

 

Should I ask for the CLI increase *while* the Discover card has a balance?

 

or after I transfer the Discover card balance and it has 0% utilization?

 

As always I look forward to your wisdom and insight here Smiley Happy

 

Also celebrating that these are much more fun questions than when I started this thread!!!!

@tcbofade @K-in-Boston @FinStar @SouthJamaica @bizcredit11 @M_Smart007 

 

 


I'm ok with your doing a no-fee balance transfer to pay off the Discover balance, since the jig is up in 2 weeks anyway, but I don't think you should then take out a new Discover CLI -- and pay a new balance transfer fee -- to move it back.


Hello @SouthJamaica, I'm always glad to hear your thoughts!

 

Just to clarify, I have to move the balance either way.   I can temporarily move it from Discover, to the card with no BT fees, but I don't have any cards that have no BT fees *and* a 0% BT offer.  So the balance will be going back to Discover either way.  

 

Just a question of if it's better to request the CLI from Discover before or after moving the balance temporarily off (which I have to do either way).  

 

Also I figure since Discover keeps giving me 0% BT offers, I should be using them as much as I can, since it's a way to get 0% without having to apply for new cards, and has a $13.5k line, so room to actually get stuff done and stay under 47% utilization.

 

Thank you for watching out for me!

Message 160 of 163
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