Take Advantage of Credit Offers by Reallocating Limits on Current Accounts
Guest: Bikshu
Post subject: Take Advantage of Credit Offers by Reallocating Limits on Current Accounts
Posted: Sun Sep 17, 2006 2:44 pm
Polonius wrote:
Oh, one other thing--about FICO scores and being overlimit.
I reallocate limits all the time among my various cards to take advantage of special offers. For example, I have an old Citi AAdvantage Mastercard which has been mine for OVER 30 years! Two years ago Citibank increased its limit from $35,700 to $42,900 without a request from me. But there was nothing special about the card. When I got a NEW Citi card with a 0% promo rate, I transferred $41,900 of the limit to that new card, leaving the AAdvantage card with a $1,000 limit and a "high balance" over $30,000.
That didn't affect my score at all so far as I could tell--not in any of the FICO or FAKO models I follow. So I get a feeling this kind of overlimit doesn't affect the scores in general, since at no point was my then-current balance higher than my then-current credit limit. I'm not sure how (or if) the computers distinguish this situation from similar ones where people really do go over their limit...
I do know that when I asked for a CLI on that $1,000 limit card, Citibank wrote me a letter saying that my CL had decreased on the card recently, suggesting I learn to use credit responsibly, pay promptly, and so forth. I felt I was back in high school getting punished by the school principal for misbehaving. Apparently its system can't distinguish a reduction caused by a Citibank analyst thinking you're deadbeat scum and a reduction initiated by the cardholder by reallocating the limit.
That makes sense as I have a similar thing showing on my report from when I had taken an old Citi card down to a $1,500 limit. The high balance is still reporting as being $3,500 from a few years prior to that. It never did seem to lower my FICO though, and this would exactly account for that. Good stuff...
By the way, try an HSBC Direct savings. They are giving 5.05% APY with a $1 minimum. ACH transfers in and out are a snap. Emigrants Direct, GMAC, and ING Direct are giving good yields as well...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: multiplierx
Credit Expert (100+ Posts)
Posted: Sun Sep 17, 2006 2:48 pm
Bikshu wrote:
I sometimes have nightmares a la "The Matrix" about being pulled aside at work into a little office where someone will ask me "Do you deny being Bikshu?"
LOL.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Mon Sep 18, 2006 5:47 am
Bikshu wrote:
Hahahaha. I would assuredly be fired ten times over for the information that I've posted on here if the bank could ever prove it was me. I've given out far too much "proprietary" information with respect to marketing, fraud, and credit decisioning strategies.
That's what I'm thinking! I better print this out and get in on this before Bikshu gets "disappeared" by MBNA
Hey, I have a question about CLIs. My CL got reduced from $16,500 to $6,500 by a loan analyst due to deadbeatitis about three years ago. I had tried to request a transfer to my bank account when I didn't have a job, and although my balance was then around $6200 and I made minimum payments (with the exception of one that was late, because I set an auto amount to be taken monthly and that month the min payment was higher), but the balance increased slightly every month. It's ironic, I was MUCH MORE profitable customer then than I am now, because I haven't paid MBNA one red cent in finance charges ever since I took care of that balance!
Anyway, my question is, what should be my strategy for getting the hold taken off and my CLIs back in full swing? I think they've probably affected what other banks are willing to give me, because if MBNA the all-generous CC god refuses to give me above $6500, they probably figure that's what they should be giving me. My highest CL other than that is with Citi, @ $6800. The MBNA card was also my only card for about four years.
Should I request something small, like a $500 increase that while it will trigger a manual review of the account due to the hold, will not cause raised eyebrows for being a large amount? Or should I go all out and request something even higher?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hesiden
Credit Expert (100+ Posts)
Posted: Mon Sep 18, 2006 9:28 am
Polonius wrote:
Oh, one other thing--about FICO scores and being overlimit.
I reallocate limits all the time among my various cards to take advantage of special offers. For example, I have an old Citi AAdvantage Mastercard which has been mine for OVER 30 years! Two years ago Citibank increased its limit from $35,700 to $42,900 without a request from me. But there was nothing special about the card. When I got a NEW Citi card with a 0% promo rate, I transferred $41,900 of the limit to that new card, leaving the AAdvantage card with a $1,000 limit and a "high balance" over $30,000.
That didn't affect my score at all so far as I could tell--not in any of the FICO or FAKO models I follow. So I get a feeling this kind of overlimit doesn't affect the scores in general, since at no point was my then-current balance higher than my then-current credit limit. I'm not sure how (or if) the computers distinguish this situation from similar ones where people really do go over their limit...
I' d bet it only hurts a FICO score when the current balance is higher than the limit (which can happen with a signature card). Your utilization will be over 100%.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hesiden
Credit Expert (100+ Posts)
Posted: Mon Sep 18, 2006 9:44 am
JaneiR36 wrote:
Anyway, my question is, what should be my strategy for getting the hold taken off and my CLIs back in full swing?
My two non-insider cents, is to call and talk with them after you've done all you can to have a really nice looking credit report that month In another thread Bikshu talked about holds getting placed on accouts to prevent any CLI and it takes a manual review of the account to remove it.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Take Advantage of Credit Offers by Reallocating Limits on Current Accounts
Posted: Sun Sep 17, 2006 2:44 pm
Polonius wrote:
Oh, one other thing--about FICO scores and being overlimit.
I reallocate limits all the time among my various cards to take advantage of special offers. For example, I have an old Citi AAdvantage Mastercard which has been mine for OVER 30 years! Two years ago Citibank increased its limit from $35,700 to $42,900 without a request from me. But there was nothing special about the card. When I got a NEW Citi card with a 0% promo rate, I transferred $41,900 of the limit to that new card, leaving the AAdvantage card with a $1,000 limit and a "high balance" over $30,000.
That didn't affect my score at all so far as I could tell--not in any of the FICO or FAKO models I follow. So I get a feeling this kind of overlimit doesn't affect the scores in general, since at no point was my then-current balance higher than my then-current credit limit. I'm not sure how (or if) the computers distinguish this situation from similar ones where people really do go over their limit...
I do know that when I asked for a CLI on that $1,000 limit card, Citibank wrote me a letter saying that my CL had decreased on the card recently, suggesting I learn to use credit responsibly, pay promptly, and so forth. I felt I was back in high school getting punished by the school principal for misbehaving. Apparently its system can't distinguish a reduction caused by a Citibank analyst thinking you're deadbeat scum and a reduction initiated by the cardholder by reallocating the limit.
That makes sense as I have a similar thing showing on my report from when I had taken an old Citi card down to a $1,500 limit. The high balance is still reporting as being $3,500 from a few years prior to that. It never did seem to lower my FICO though, and this would exactly account for that. Good stuff...
By the way, try an HSBC Direct savings. They are giving 5.05% APY with a $1 minimum. ACH transfers in and out are a snap. Emigrants Direct, GMAC, and ING Direct are giving good yields as well...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: multiplierx
Credit Expert (100+ Posts)
Posted: Sun Sep 17, 2006 2:48 pm
Bikshu wrote:
I sometimes have nightmares a la "The Matrix" about being pulled aside at work into a little office where someone will ask me "Do you deny being Bikshu?"
LOL.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Mon Sep 18, 2006 5:47 am
Bikshu wrote:
Hahahaha. I would assuredly be fired ten times over for the information that I've posted on here if the bank could ever prove it was me. I've given out far too much "proprietary" information with respect to marketing, fraud, and credit decisioning strategies.
That's what I'm thinking! I better print this out and get in on this before Bikshu gets "disappeared" by MBNA
Hey, I have a question about CLIs. My CL got reduced from $16,500 to $6,500 by a loan analyst due to deadbeatitis about three years ago. I had tried to request a transfer to my bank account when I didn't have a job, and although my balance was then around $6200 and I made minimum payments (with the exception of one that was late, because I set an auto amount to be taken monthly and that month the min payment was higher), but the balance increased slightly every month. It's ironic, I was MUCH MORE profitable customer then than I am now, because I haven't paid MBNA one red cent in finance charges ever since I took care of that balance!
Anyway, my question is, what should be my strategy for getting the hold taken off and my CLIs back in full swing? I think they've probably affected what other banks are willing to give me, because if MBNA the all-generous CC god refuses to give me above $6500, they probably figure that's what they should be giving me. My highest CL other than that is with Citi, @ $6800. The MBNA card was also my only card for about four years.
Should I request something small, like a $500 increase that while it will trigger a manual review of the account due to the hold, will not cause raised eyebrows for being a large amount? Or should I go all out and request something even higher?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hesiden
Credit Expert (100+ Posts)
Posted: Mon Sep 18, 2006 9:28 am
Polonius wrote:
Oh, one other thing--about FICO scores and being overlimit.
I reallocate limits all the time among my various cards to take advantage of special offers. For example, I have an old Citi AAdvantage Mastercard which has been mine for OVER 30 years! Two years ago Citibank increased its limit from $35,700 to $42,900 without a request from me. But there was nothing special about the card. When I got a NEW Citi card with a 0% promo rate, I transferred $41,900 of the limit to that new card, leaving the AAdvantage card with a $1,000 limit and a "high balance" over $30,000.
That didn't affect my score at all so far as I could tell--not in any of the FICO or FAKO models I follow. So I get a feeling this kind of overlimit doesn't affect the scores in general, since at no point was my then-current balance higher than my then-current credit limit. I'm not sure how (or if) the computers distinguish this situation from similar ones where people really do go over their limit...
I' d bet it only hurts a FICO score when the current balance is higher than the limit (which can happen with a signature card). Your utilization will be over 100%.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hesiden
Credit Expert (100+ Posts)
Posted: Mon Sep 18, 2006 9:44 am
JaneiR36 wrote:
Anyway, my question is, what should be my strategy for getting the hold taken off and my CLIs back in full swing?
My two non-insider cents, is to call and talk with them after you've done all you can to have a really nice looking credit report that month In another thread Bikshu talked about holds getting placed on accouts to prevent any CLI and it takes a manual review of the account to remove it.
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 3:01 PM
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