Should I apply for CLI?

Anonymous · ‎05-09-2007

Hi all,

My job requires me spend about $2000 every month, which I get re-imbursed every month end. Does a high debt to available credit ratio hurt my credit score? Should I apply for a CLI so as to reduce my debt to available credit ratio? Or would a CLI hurt more than help? I applied for a CC as recently as in Feb 2007.

Thanks in advance!

Anonymous · ‎05-09-2007

Definitely go for a CLI, unless your current CL is over $20,000. High utilization of your available credit tanks your score.

Hope you've got a cash back or rewards card!

Anonymous · ‎05-09-2007

No luck there. Back in the day, I was glad I had 0% APR

BTW, is it fruitful for me to apply for one now. If yes, any suggestions?

Anonymous · ‎05-09-2007

I've had Citi do an instant evaluation without a credit report pull, and sometimes they do an instant reject, and other times they give you an opportunity to fill out a form. I applied online at BOA a month after getting a card, and they did an evaluation within 1 business day, the notice said they wouldn't do a pull without checking with me. Why don't you first call up whoever it is and ask them, what can they do for you without a pull; it might be more than you think.

Anonymous · ‎05-18-2007

So I applied for the CLI with my credit union. The person said I'm eligible for a CLI of 25% of my annual income minus the cumulative CL of my other cards. Now this is something new to me. I thought having a high CL on my other cards would only help in getting a higher CL for this one. Any thoughts?

Anonymous · ‎05-18-2007

They want to make sure your income is enough to cover total credit lines in case you max out all your cards. Perfectly normal and all banks usually follow this.

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However each bank has it's own limits to how much they will lend you. Your bank doesn't want to allow you to go over 25% of income. Some banks will give you a credit line over 100% of your income.

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You can turn this situation in to a profitable one by using a "Rewards" card to get cash back or points to win stuff.

Message Edited by ilovepizza on 05-18-2007 05:02 PM