Best Way to Request a Credit Card Limit Increase
Author: AJ
Posted: Sun Jun 04, 2006 4:11 pm
Post subject: When Requesting limit increase
How much credit should be left on the card
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Author: mouse
Posted: Sun Jun 04, 2006 4:24 pm
Post subject: Re: When Requesting limit increase
Quote:
"AJ"
How much credit should be left on the card
You really think they approve a CLI when you are at 99%
But on the other-hand I have been asked why I need more when I don't even barely even use the card...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: fire3000
Posted: Sun Jun 04, 2006 9:22 pm
Post subject: CLI Request
If I was a credit analyst (my job has nothing to do with finances) for a card company and I saw an account that frequently charged up to near the credit limit and always made large payments to enable more charging, I would grant the CLI request. By charging up to just below the limit demonstrates a need for a higher limit and making payments much higher than the minimum demonstrates that the person can easily make the payments on a higher balance. His frequent charging will generate more revenue for the company if his limit is increased. Normally this is not the case and the card issurers prefer to see a much lower utilization ratio.
I have a Chase card with one year of zero percent on both an initial balance transfer and all subsequent charges plus they pay 1 to 3 percent cash back on charges. I maxed it out with the BT, so to take advantage of the cash back rewards on purchases, I have to make large payments prior to charging. They started me off at a generous 12K, so I have not asked for an increase and I also have three other Chase cards totalling over 40K that are being nearly fully utilized.
Author: jlrdc909
Posted: Tue Jun 06, 2006 5:05 pm
Post subject: Best Way to Request a Credit Card Limit Increase
I am always amazed and puzzled at what formulas could be used for calculating who and when credit limits increases are granted. If I were the CLI specialist, I would think it would make sense to give increases to people who charged nearly the limit and made hefty payments, but see in the real world that would make sense, but in the credit card world not everything is so cut and dry.
I have heard that charging 40 percent of your limit should be the stopping point, 30-35% is the amount most banks feel comfortable, but then again, each bank is different. Remember Creditcardology is not an exact science (yet)!
Author: rookie
Posted: Tue Jun 06, 2006 5:49 pm
Post subject: Best Way to Request a Credit Card Limit Increase
CC companies frown on people that constantly "hug" their credit lines. They definetly DO NOT like to see the card maxed out and stay that way. I believe that if you hug the credit line given, and just make normal monthly minimum payments, YOU WILL be turned down for a CLI.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Sun Jun 04, 2006 4:11 pm
Post subject: When Requesting limit increase
How much credit should be left on the card
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Sun Jun 04, 2006 4:24 pm
Post subject: Re: When Requesting limit increase
Quote:
"AJ"
How much credit should be left on the card
You really think they approve a CLI when you are at 99%
But on the other-hand I have been asked why I need more when I don't even barely even use the card...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: fire3000
Posted: Sun Jun 04, 2006 9:22 pm
Post subject: CLI Request
If I was a credit analyst (my job has nothing to do with finances) for a card company and I saw an account that frequently charged up to near the credit limit and always made large payments to enable more charging, I would grant the CLI request. By charging up to just below the limit demonstrates a need for a higher limit and making payments much higher than the minimum demonstrates that the person can easily make the payments on a higher balance. His frequent charging will generate more revenue for the company if his limit is increased. Normally this is not the case and the card issurers prefer to see a much lower utilization ratio.
I have a Chase card with one year of zero percent on both an initial balance transfer and all subsequent charges plus they pay 1 to 3 percent cash back on charges. I maxed it out with the BT, so to take advantage of the cash back rewards on purchases, I have to make large payments prior to charging. They started me off at a generous 12K, so I have not asked for an increase and I also have three other Chase cards totalling over 40K that are being nearly fully utilized.
Author: jlrdc909
Posted: Tue Jun 06, 2006 5:05 pm
Post subject: Best Way to Request a Credit Card Limit Increase
I am always amazed and puzzled at what formulas could be used for calculating who and when credit limits increases are granted. If I were the CLI specialist, I would think it would make sense to give increases to people who charged nearly the limit and made hefty payments, but see in the real world that would make sense, but in the credit card world not everything is so cut and dry.
I have heard that charging 40 percent of your limit should be the stopping point, 30-35% is the amount most banks feel comfortable, but then again, each bank is different. Remember Creditcardology is not an exact science (yet)!
Author: rookie
Posted: Tue Jun 06, 2006 5:49 pm
Post subject: Best Way to Request a Credit Card Limit Increase
CC companies frown on people that constantly "hug" their credit lines. They definetly DO NOT like to see the card maxed out and stay that way. I believe that if you hug the credit line given, and just make normal monthly minimum payments, YOU WILL be turned down for a CLI.
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 12:19 AM
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