Credit Tips: Can My Credit Card Limit Be Raised 3,000?

Posted On: December 20, 2006

Author: Tunes
Posted: Wed Dec 20, 2006 10:51 pm
Post subject: Need your opinion

Credit score: 770

I have a couple credit cards. The one I’ve used the most is Discover with fixed apr of 9.9. Other card Citicard at variable rate of 11.24. And Wells CC at 14.99. Right now credit limit is 4000. What are the chances that you think they would be willing to raise it up to 7000 or so?

Author: hdporter
Posted: Wed Dec 20, 2006 11:34 pm
Post subject:

I assume that “it” is the Discover card with a limit of 4000. I’ll give you a 50/50 — stronger if it’s been a year since any change to your limit or you run through at least an average of $350 in charges monthly. I think 6000 might be a more realistic target, but by all means call and request 7000.

I recently called on my account that was opened 6 mo ago and they came through with an increase from $6000 to $7550 without pulling a credit report. There was the sense that they might have offered a little more if I’d been willing to authorize a “hard” pull.

- Harry

Last edited by hdporter on Thu Dec 21, 2006 9:27 am; edited 1 time in total

Author: ALex
Posted: Wed Dec 20, 2006 11:35 pm
Post subject: Re: Need your opinion

Tunes wrote:
Credit score: 770

I have a couple credit cards. The one I’ve used the most is Discover with fixed apr of 9.9. Other card Citicard at variable rate of 11.24. And Wells CC at 14.99. Right now credit limit is 4000. What are the chances that you think they would be willing to raise it up to 7000 or so?

Good chance, your debt/income, ect may be part of any decision for a cli

Author: Tunes
Posted: Thu Dec 21, 2006 7:54 am
Post subject: debt/income ratio

Yeah the debt/income ratio isn’t bad. I’ve had the discover since 1999. I have a balance on my Wells which is 14.99 that I’d like to transfer over to my Discover. The Discover is not maxed out but if I transfer the balance over than it will reach the max so I was thinking if it would be better to get a credit limit increase and transfer the balance over to a lower rate which would end up being 3.9 for 6 months than back to the fixed 9.9

Author: hdporter
Posted: Thu Dec 21, 2006 9:48 am
Post subject:

Just make sure you factor transfer fees appropriately when assessing the economics.

For example, a 3% fee on a $2500 tr ($75) w/ a stated promo rate of 3%, with an expiration of that rate in 6 mo, makes for an effective “promo” rate of 9% per annum.

If you expect to pay down the balance during the promo period, say gradually to $1500, then the effective rate climbs to over 10%.

Not saying that you haven’t done this, or that you’re looking at an offer with a fee in the first place. It’s just that the large majority of promo offers that show up in my mail from my current issuers are worthless because of the fee structure.

——

btw, I’m really impressed with your fixed rate Discover. Guess that one’s a keeper … they don’t issue fixed rate cards these days, or do they?

Here’s one thing I might suggest you consider asking about:

Discover has been offering some existing cardholders 1.9% for life on transferred balances, no fee. A $25 mo purchase is required to keep the rate after 6 mo. (I got in on this deal, upon request, this fall.)

After you’ve received a decision on your request for a line increase, give them a call and tell them you have a friend who was offered this. Ask them if, as a longterm cardholder it’s available to you. You may have to ask to speak to “account retention”. I told them I didn’t intend to cancel the card, but that were the offer available to me I’d be appreciative (of course, my account terms are different so they may simply tell you no).

I’m going to assure you that if you can take advantage of the deal, the $25 mo purchase doesn’t appreciably change the attractiveness. You might be looking at a total 2.5% over the life of the balance transfer on the total account balance. (This assumes that other than the $25, you switch to another card for charges.)

In my case, I paid off my account in full just prior to making the transfers to load the card up to 50% of it’s limit.

I think given your active use of your card, you’re favorably positioned for consideration for the offer. Such offers rely upon your continued card use and payments against new charges. Those payments are funneled to the promo balance rather than the new charges. In short order, the promo bal is paid in full and instead the curr chgs accumulate at the full stated card rate.

Effectively what they’ve encouraged you to do is simply transfer a large balance that you continue to carry at your stated card rate. They have every reason to anticipate that from you; they don’t know that you’re smarter than that.