But IMHO, bottom line is utilization affects scores. So if I lower my utilization prior to asking, I have a better chance. Not trying to impress a lender by saying I can repay early. Trying to maximize and optimize scores by lowering utilization. (of course I never go over 8.9% anyway so it doesn’t matter.)
Exactly. A person wants all the scoring help they can get for the best possible rates, and a higher score in most cases equals a lower APR.
Which is what I'll do just before a planned app. However, i do not see the need to continue this practice on a regular schedule.
The lender already has all the data they need to make that decision except possibly a fresh credit pull and your current income. Pay before the statement cuts, pay after it cuts, doesn't matter as long as you pay. It's just much more work to pay before it cuts.
Which is why I don't really like burining a HP for a CLI, as we already know it's the same info for both SP and HP. Not to mention most increases are rather small compared to CL's on new accounts. So if I'm gonna burn a HP, I would rather save it for the more important account.
My rebuild started in March of last year with the Propel (SL 3k). Six months later, I got Discover (SL 2750), and I've had the Cash Magnet (SL 10k) for about 2 months now.
So far, I've received a 1300 CLI on the Propel, and a measly 250 on the Disco (although I was able to get a SP CLI of 2500 immediately after).
I let all my balances report, and PIF. The only time I've made mid-cycle payments was when I needed breathing room for my spend (and even then, I only paid as little as necessary). I've never been concerned with my util (cards have been maxed (> 90%) on multiple occasions, especially at first when there was less available credit), and don't practice AZEO (I actually ensure all cards report a balance).
I only concern myself with my score when I'm about to app. If I have a creditor that gets spooked by a transient util spike, I'd prefer to learn about it sooner, rather than later.
This is just my experience, and not meant as any sort of advice. My CLIs and current limits have exceeded expectations, and are more than adequate for my needs, so it's worked for me.
Application or request is semantics, it’s still an application for an extension of existing credit.
I don’t advocate micromanaging just prettying up your file before you seek new credit or an extension of existing credit because a higher score is going to give you a better chance.
Micromanaging is stressful it’s definitely not something to be done all the time unless that’s just what someone wants to do.
I’m not talking about negative impact of paying off, I’m talking about positive impact of paying down on your score.
All other things constant, would one say you don’t have a better chance of a CLI with a higher score?
I'm not convinced that CLIs weigh scores heavily versus payment history with the existing creditor and on other accounts. Look how many people get denied CLIs and the letter cites an old score. No amount of prettying things up is going to change the internal data. People stress way too much about all the tricks to make their files look pretty and I'm not convinced at all that creditors can't see right through it anyway. Use and pay and go on with your life. Stress when you're getting a mortgage, not a credit card or a CLI.
I’m not gonna stress at all but I’m gonna give myself the best chances in my opinion.
Except there's no evidence to prove that you are. It can very easily be argued that someone who doesn't make use of their float actually doesn't need any additional credit. 🤷♂️