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High utilization/Credit limit increase

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kitm
Member

High utilization/Credit limit increase

I currently have a high utilization rate on my credit cards and it's the only thing negatively affecting my credit score. It's at 85% total, and individually, the worst are at around 95%. I want to ask for a credit limit increase to help my utilization rate, but I don't want to request it and have it denied and have a hard inquiry on my report. What can I do to boost my chances of having the credit limit increase approved? Is there a certain percentage I should reach before doing the request?

 

The other reason I want an increase is that I'm hoping to add my husband as an authorized user to a couple of cards to help increase his score.

 

 

Message 1 of 12
11 REPLIES 11
shols44
Frequent Contributor

Re: High utilization/Credit limit increase

Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC. 

 

 


Starting Score: 501
Current Score: 754 EQ,TU 745,EX 750
Goal Score: 800

Message 2 of 12
pizzadude
Credit Mentor

Re: High utilization/Credit limit increase

 

I agree that it's going to be tough to get a CLI with your current utilization maxed.   Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 3 of 12
kitm
Member

Re: High utilization/Credit limit increase


@shols44 wrote:

Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC. 

 

 


Thank you for the completely useless information. I didn't post here to be insulted and lectured.

 

I've already acknowledged that the utilization was high and that I'm paying it. I'm not looking for information on how to get and maintain a good credit score by keeping a decent utilization rate. I was hoping someone would know what what percentage it would be less risky for me to request an increase. Or if there are any other factors that would help.

 

As I've mentioned, I'm not looking to get an increase so I can spend more. I want the increase so my utilization would lower faster and to help boost my husband's credit score.

 

Message 4 of 12
kitm
Member

Re: High utilization/Credit limit increase


@pizzadude wrote:

 

I agree that it's going to be tough to get a CLI with your current utilization maxed.   Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.


I understand it is tough to get a credit limit increase with my high utilization rate, and I am paying it down as quickly as possible. But at what point is it ok to ask for the increase?

 

I've already added my husband as an authorized user, but I think it's too soon for it to be reported to on his credit report. I've added him on a card with about 50% utilization and hoping it help his credit score. He currently has no accounts with revolving balances, a few deliquencies, and at least two accounts in collections. It would be the oldest account on his report, and one with a clean payment history.

 

 

Message 5 of 12
pizzadude
Credit Mentor

Re: High utilization/Credit limit increase


@kitm wrote:

@pizzadude wrote:

 

I agree that it's going to be tough to get a CLI with your current utilization maxed.   Pay it down as quickly as possible - also I wouldn't add your husband as an AU until it is paid down.


I understand it is tough to get a credit limit increase with my high utilization rate, and I am paying it down as quickly as possible. But at what point is it ok to ask for the increase?

 

I've already added my husband as an authorized user, but I think it's too soon for it to be reported to on his credit report. I've added him on a card with about 50% utilization and hoping it help his credit score. He currently has no accounts with revolving balances, a few deliquencies, and at least two accounts in collections. It would be the oldest account on his report, and one with a clean payment history.

 

 


Well it's really hard to know.....just due to the fact that creditors have different policies regarding their CLIs.    I'd think that you'd want to be less than 50%, at least, before you ask for an increase....

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 12
kitm
Member

Re: High utilization/Credit limit increase


@pizzadude wrote:


Well it's really hard to know.....just due to the fact that creditors have different policies regarding their CLIs.    I'd think that you'd want to be less than 50%, at least, before you ask for an increase....

 


 

Darn, I was hoping to be able to do it sooner. Anybody familiar with Bank of America's or Capital One's policies?

 

Message 7 of 12
beb86
Valued Contributor

Re: High utilization/Credit limit increase


@kitm wrote:

@shols44 wrote:

Pay down your debt. 85% utilization is unacceptable and a sign of improper credit use. If this is a one time carry sure thats understandable. You should pay down your util down to 30%, and use only what you can pay immediately on your CC. 

 

 


Thank you for the completely useless information. I didn't post here to be insulted and lectured.

 

I've already acknowledged that the utilization was high and that I'm paying it. I'm not looking for information on how to get and maintain a good credit score by keeping a decent utilization rate. I was hoping someone would know what what percentage it would be less risky for me to request an increase. Or if there are any other factors that would help.

 

As I've mentioned, I'm not looking to get an increase so I can spend more. I want the increase so my utilization would lower faster and to help boost my husband's credit score.

 


This is info pulled from the fico high achievers thread....best chance for a CLI is UTIL <30%. I understand you are new here and the members here will tell you info based on what was posted and more importantly real life experiences. The above poster was just trying to provide helpful advice for your question/situation. What are your current cards and Util on them...if you have any GE backed cards with low UTIL you have good chances at a CLI

Message 8 of 12
_jb_
Frequent Contributor

Re: High utilization/Credit limit increase


@kitm wrote:


Darn, I was hoping to be able to do it sooner. Anybody familiar with Bank of America's or Capital One's policies?


I can't speak for BoA, but I know from experience (last night) that Capital One does a soft pull for CLI (and explicitly explains so prior to doing it) so it can't hurt to try sooner than <50% utilization (UT? - not good with all of the acronyms here yet..) if you feel like it will help your situation sooner.



Starting Scores: myFICO EQ: 678, myFICO TU: 676, myFICO EX: 678 (01/2013)
Latest Scores: myFICO EQ: 789, myFICO TU: 782, myFICO EX: 788
My Wallet: American Express BCE, NFCU cashRewards, Capital One Quicksilver, Discover It, Chase Freedom, Chase Amazon Rewards
Gardening since 02/07/17
Message 9 of 12
Shogun
Moderator Emeritus

Re: High utilization/Credit limit increase

I would have to say that below 50% you would stand a chance and below 30% a better chance.  It's always a YMMV type of thing.  Also when trying for a CL they ask your income, so improvement in that area might make your chances better.  I wish you the best of luck.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 10 of 12
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