Credit Limit Increase Credit Card Tips
Author: Dave
Posted: Tue Mar 28, 2006 11:49 pm
Post subject: [moved] Discussion from CLI sticky
Quote:
sykai said: Wow,..dave,.. nice score..
Thanks - though it's really just some computer's calculation based on incomplete information.
It changes quite often just doing what I do regularly yet the real "credit risk" doesn't really change much at all month to month. Don't pay too much attention to your actual score unless you're actively trying to benefit from it in some way (qualifying you for better interest rates, balance transfer offers, etc.). Most of the time, so long as you keep your score reasonable, it's irrelevant.
Quote:
I have a BOA CL of $10,000 and another BOA CL of $1,500. Got them 10/2004, 12/2004, respectively. My score's only 629. Always pay on time. Do you think they'll give me a CLI on the 1st one? AND Do you think they'll increase the 2nd one to $10,000?
I don't have a lot of experience with Bank of America just yet (I only picked up their card late in '04 to take advantage of a 0% offer). If I had to guess just based on my experiences elsewhere, I'd say they probably have guidelines as to how much they'll extend to one individual across all cards they issue. Right now, you have $11,500 from them which may or may not be all they're willing to extend (in any distribution across cards) depending on your income and other factors. You also didn't mention whether or not you were carrying a balance on those cards. If you aren't, you might ask if they'd extend a 0% balance transfer offer and bundle it with a CLI, and then use that to consolidate any other balances which aren't riding on a 0% card. If you do that, put that card away and don't use it for anything else...they'll apply any payments you make to the 0% interest part before any new charges billed at the higher rate.
With a 629 score, multiple cards with balances, several near the limit, and with them already extending you your largest line of credit, I'd say your chances of a large CLI aren't all that great. Fortunately, there's a no-harm, no-foul way to get an idea of what their system thinks at the moment -- visit your online banking page and click the link to request a CLI. It will either tell you what you're automatically approved for with no hard pull (which you can accept or decline) or will present you with a form requesting additional information. If it's the former, well, there's your answer. If it's the latter, they're almost certainly going to require a hard pull at a minimum and may well decline to increase your limit based on what they find.
Quote:
sykai said: Also, generally speaking,.. is it always good to get a CLI? I mean, there's no reason why people WOULDN'T want one, right?
CLIs can be a good thing or they can make a real mess of your life. In short, if you're capable of managing your spending and "living within your means", CLIs can help improve your scores by reducing your overall utilization with no other changes required. $500 used on a card with a $600 limit looks "bad" (== "high utilization"). That same $500 on a card with a $45,000 limit however looks great to a computer.
If one is the sort of person who always manages to ramp up spending to match the available credit line, CLIs can be quite dangerous. The banks tend to offer just enough rope to get into trouble with and then at the worst possible moment, they yank back. Hard.
Another possible "downside" to the "always try for CLIs" school of thought: There comes a point where you may find a new creditor unwilling to extend credit based on the credit that has already been made available to you and their belief in your ability to pay. This is not very common however and, if it comes up at an important juncture (such as obtaining a mortgage), it's usually easy enough to make arrangements that will satisfy them.
Quote:
sykai said: Also wondering, what are my CLI chances?:
CHASE BANK USA, NA (btw what's NA?? )
opened 9/03
bal $1,929
CL $2,000 (As you can see, I can really use some incr)
CITIBANK SD NA
opened 1/01
CL $450
CITI CARDS CBSDNA
opened 11/04
CL $3,400
HSBC BANK NV FKA HHL
opened 8/05
bal $1,808
CL $2,000 (can use here, too)
WASHMU/PROVI
opened 9/2005
bal $563
CL $2,000
It sounds redundant given the "USA" on there but "NA" attached to a creditor is their "North America" arm, typically. CitiBank often shows up with "SD" and "NA" in there somewhere -- South Dakota, North America.
If you dig through the prior pages of that CLI sticky post, you'll get a broad sampling of what people have encountered when attempting to obtain a CLI. It's a mixed bag with a considerable dependancy on an individual's unique situation but some trends are starting to emerge.
Unfortunately, given the information you've shared - both the running balances and your current score, you're probably not a great candidate for substantial CLIs from any of your creditors at the moment. Sadly, the rule of thumb is that, "if you need more credit, it's difficult to come by but when you don't need credit, banks line up to give you more". The aforementioned tip of checking the creditor's website for possible automatic CLIs works with Chase and Citibank so you can probably see for yourself with little risk. (Don't fill out any forms that might be presented -- if you don't see an automatic increase made available with just an "accept" or "decline" button, you're likely going to be required to authorize a hard pull so they can review your credit. If you pay down your cards, particularly those with high utilization, you'll likely boost your score considerably -- and may even see automatic increases from various creditors as they do their periodic account reviews.
Quote:
Also, I feel stupid for asking this but,.. If a CC acct becomes closed, it is closed for good? There is no way whatsoever to open it again? I actually had another CITI CARDS CBSDNA opened 11/04 CL $3,400 which I never knew I had.. till my mom found it from the closet. -_- It was never used.. but closed 3/5/06. Also got a letter which stated, "A recent review of your credit report has caused us to close your acc as of 3/5/06. Please do not attempt to use, as no new transactions will be authorized. Our credit decision was based in whole or in part on info obtained in a report from the consumer reporting agency listed below (Equifax). Specifically, the agency's report shows the proportion of balances to credit limits is too high on revolving accounts and the amount owed on revolving accts is too high..."
If closed by you recently, yes, there's a good chance you could reopen the account with ease (the easiest way just being a charge to the card -- most creditors treat your request to close the account as a "soft close" or whatever one might choose to call it -- any charge, even a previously authorized periodic charge (like a magazine subscription renewal), is considered your authorization or consent to "reopen" the account.
Unfortunately, in the situation you described, the creditor closed the account on you based on a review of your credit report from Equifax. Their stated concern is that you're running balances on the bulk of your cards and several of them are near their limits. These are warning signs to them; they think you're too much of a risk based on your current use of credit and they're reducing their exposure by making some of that credit inaccessible to you. Now, without knowing your personal situation, I can't say if you should consider that information to be warning signs for you as well or not.... Depending on how much disposable income you have each month, the amount of debt you're carrying could take quite some time to pay off, especially if your creditors raised your interest rates because of automatic account review, over limit fees (if triggered), etc. Of course, if you're just floating balances because you had 0% offers and could pay the full amounts due at any time, the numbers on the report don't tell the whole story. That's something you'll need to evaluate on your own since only you have all the information at your disposal.
Quote:
(BTW, it's been only about 10 times since I've broswed here and there on this site and been learning quite a lot everyday. @ same time, feel like I've discovered a whole new world and also shame on me for ignorance all throughout those yrs.
Welcome!
This forum is a fantastic resource. Every time I check back in, it seems I learn something new!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: sykai
Posted: Wed Mar 29, 2006 12:46 am
Post subject:
Thanks fer giving me a reply to remember~ feel so special kehk
Thank you you've been very helpful!! Please log on often!
OH, btw it's
$9,564/$10,000 (Bal/CL)
$1,222/$1,500 (Bal/CL) for the BOA's. (sigh)..
Thanks again Dav, really appreciate.
(my bro's name is Dave btw.. wish he coulda had a better score, as he just might be my co-signer for my priv education loans.. (sigh))
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Tue Mar 28, 2006 11:49 pm
Post subject: [moved] Discussion from CLI sticky
Quote:
sykai said: Wow,..dave,.. nice score..
Thanks - though it's really just some computer's calculation based on incomplete information.
It changes quite often just doing what I do regularly yet the real "credit risk" doesn't really change much at all month to month. Don't pay too much attention to your actual score unless you're actively trying to benefit from it in some way (qualifying you for better interest rates, balance transfer offers, etc.). Most of the time, so long as you keep your score reasonable, it's irrelevant.
Quote:
I have a BOA CL of $10,000 and another BOA CL of $1,500. Got them 10/2004, 12/2004, respectively. My score's only 629. Always pay on time. Do you think they'll give me a CLI on the 1st one? AND Do you think they'll increase the 2nd one to $10,000?
I don't have a lot of experience with Bank of America just yet (I only picked up their card late in '04 to take advantage of a 0% offer). If I had to guess just based on my experiences elsewhere, I'd say they probably have guidelines as to how much they'll extend to one individual across all cards they issue. Right now, you have $11,500 from them which may or may not be all they're willing to extend (in any distribution across cards) depending on your income and other factors. You also didn't mention whether or not you were carrying a balance on those cards. If you aren't, you might ask if they'd extend a 0% balance transfer offer and bundle it with a CLI, and then use that to consolidate any other balances which aren't riding on a 0% card. If you do that, put that card away and don't use it for anything else...they'll apply any payments you make to the 0% interest part before any new charges billed at the higher rate.
With a 629 score, multiple cards with balances, several near the limit, and with them already extending you your largest line of credit, I'd say your chances of a large CLI aren't all that great. Fortunately, there's a no-harm, no-foul way to get an idea of what their system thinks at the moment -- visit your online banking page and click the link to request a CLI. It will either tell you what you're automatically approved for with no hard pull (which you can accept or decline) or will present you with a form requesting additional information. If it's the former, well, there's your answer. If it's the latter, they're almost certainly going to require a hard pull at a minimum and may well decline to increase your limit based on what they find.
Quote:
sykai said: Also, generally speaking,.. is it always good to get a CLI? I mean, there's no reason why people WOULDN'T want one, right?
CLIs can be a good thing or they can make a real mess of your life. In short, if you're capable of managing your spending and "living within your means", CLIs can help improve your scores by reducing your overall utilization with no other changes required. $500 used on a card with a $600 limit looks "bad" (== "high utilization"). That same $500 on a card with a $45,000 limit however looks great to a computer.
If one is the sort of person who always manages to ramp up spending to match the available credit line, CLIs can be quite dangerous. The banks tend to offer just enough rope to get into trouble with and then at the worst possible moment, they yank back. Hard.
Another possible "downside" to the "always try for CLIs" school of thought: There comes a point where you may find a new creditor unwilling to extend credit based on the credit that has already been made available to you and their belief in your ability to pay. This is not very common however and, if it comes up at an important juncture (such as obtaining a mortgage), it's usually easy enough to make arrangements that will satisfy them.
Quote:
sykai said: Also wondering, what are my CLI chances?:
CHASE BANK USA, NA (btw what's NA?? )
opened 9/03
bal $1,929
CL $2,000 (As you can see, I can really use some incr)
CITIBANK SD NA
opened 1/01
CL $450
CITI CARDS CBSDNA
opened 11/04
CL $3,400
HSBC BANK NV FKA HHL
opened 8/05
bal $1,808
CL $2,000 (can use here, too)
WASHMU/PROVI
opened 9/2005
bal $563
CL $2,000
It sounds redundant given the "USA" on there but "NA" attached to a creditor is their "North America" arm, typically. CitiBank often shows up with "SD" and "NA" in there somewhere -- South Dakota, North America.
If you dig through the prior pages of that CLI sticky post, you'll get a broad sampling of what people have encountered when attempting to obtain a CLI. It's a mixed bag with a considerable dependancy on an individual's unique situation but some trends are starting to emerge.
Unfortunately, given the information you've shared - both the running balances and your current score, you're probably not a great candidate for substantial CLIs from any of your creditors at the moment. Sadly, the rule of thumb is that, "if you need more credit, it's difficult to come by but when you don't need credit, banks line up to give you more". The aforementioned tip of checking the creditor's website for possible automatic CLIs works with Chase and Citibank so you can probably see for yourself with little risk. (Don't fill out any forms that might be presented -- if you don't see an automatic increase made available with just an "accept" or "decline" button, you're likely going to be required to authorize a hard pull so they can review your credit. If you pay down your cards, particularly those with high utilization, you'll likely boost your score considerably -- and may even see automatic increases from various creditors as they do their periodic account reviews.
Quote:
Also, I feel stupid for asking this but,.. If a CC acct becomes closed, it is closed for good? There is no way whatsoever to open it again? I actually had another CITI CARDS CBSDNA opened 11/04 CL $3,400 which I never knew I had.. till my mom found it from the closet. -_- It was never used.. but closed 3/5/06. Also got a letter which stated, "A recent review of your credit report has caused us to close your acc as of 3/5/06. Please do not attempt to use, as no new transactions will be authorized. Our credit decision was based in whole or in part on info obtained in a report from the consumer reporting agency listed below (Equifax). Specifically, the agency's report shows the proportion of balances to credit limits is too high on revolving accounts and the amount owed on revolving accts is too high..."
If closed by you recently, yes, there's a good chance you could reopen the account with ease (the easiest way just being a charge to the card -- most creditors treat your request to close the account as a "soft close" or whatever one might choose to call it -- any charge, even a previously authorized periodic charge (like a magazine subscription renewal), is considered your authorization or consent to "reopen" the account.
Unfortunately, in the situation you described, the creditor closed the account on you based on a review of your credit report from Equifax. Their stated concern is that you're running balances on the bulk of your cards and several of them are near their limits. These are warning signs to them; they think you're too much of a risk based on your current use of credit and they're reducing their exposure by making some of that credit inaccessible to you. Now, without knowing your personal situation, I can't say if you should consider that information to be warning signs for you as well or not.... Depending on how much disposable income you have each month, the amount of debt you're carrying could take quite some time to pay off, especially if your creditors raised your interest rates because of automatic account review, over limit fees (if triggered), etc. Of course, if you're just floating balances because you had 0% offers and could pay the full amounts due at any time, the numbers on the report don't tell the whole story. That's something you'll need to evaluate on your own since only you have all the information at your disposal.
Quote:
(BTW, it's been only about 10 times since I've broswed here and there on this site and been learning quite a lot everyday. @ same time, feel like I've discovered a whole new world and also shame on me for ignorance all throughout those yrs.
Welcome!
This forum is a fantastic resource. Every time I check back in, it seems I learn something new!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: sykai
Posted: Wed Mar 29, 2006 12:46 am
Post subject:
Thanks fer giving me a reply to remember~ feel so special kehk
Thank you you've been very helpful!! Please log on often!
OH, btw it's
$9,564/$10,000 (Bal/CL)
$1,222/$1,500 (Bal/CL) for the BOA's. (sigh)..
Thanks again Dav, really appreciate.
(my bro's name is Dave btw.. wish he coulda had a better score, as he just might be my co-signer for my priv education loans.. (sigh))
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 4:14 PM
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