Author Topic: Asking for Credit Limit Increases (on credit cards) (Read 6275 times)

trailrated

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Asking for Credit Limit Increases (on credit cards)
« on: August 12, 2015, 02:06:52 PM »
How many of you do this regularly? I just did my second round, staggered by about 7 months. My reason for doing so was to keep my overall usage under 10% each month. Overall it was 3 phone calls and about 10 minutes to increase my limits by a combined $12,000.

Chase Sapphire................................$5,000 automatically increased to $6,500.... after call to $10,000
Chase Southwest Rapid Rewards..........$8,000 after call to $15,000
Wells Fargo Something......................$3,000 after call to $4,500
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Chris22

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #1 on: August 12, 2015, 02:11:26 PM »
How many of you do this regularly? I just did my second round, staggered by about 7 months. My reason for doing so was to keep my overall usage under 10% each month. Overall it was 3 phone calls and about 10 minutes to increase my limits by a combined $12,000.

Chase Sapphire................................$5,000 automatically increased to $6,500.... after call to $10,000
Chase Southwest Rapid Rewards..........$8,000 after call to $15,000
Wells Fargo Something......................$3,000 after call to $4,500

Any special reason for that? I've always been wary of trying to game credit rating systems, given that I really don't think it means that much above a certain level (mid 700s?) and is more trouble than it's worth. Personally, my cards are usually escalated regularly and I call back and ask to have them brought back DOWN.
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KittyCat

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #2 on: August 12, 2015, 02:25:59 PM »
Any special reason for that? I've always been wary of trying to game credit rating systems, given that I really don't think it means that much above a certain level (mid 700s?) and is more trouble than it's worth. Personally, my cards are usually escalated regularly and I call back and ask to have them brought back DOWN.
It's not much trouble; I called Discover once, and the call only took around 5mins to get a credit limit increase. I've only done it once since I'm at 0% utilization as it is (1% at most)

Mississippi Mudstache

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #3 on: August 12, 2015, 02:28:51 PM »
Personally, my cards are usually escalated regularly and I call back and ask to have them brought back DOWN.

Why?
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iowajes

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #4 on: August 12, 2015, 02:30:07 PM »
I've never called because I have so many cards and they all have high limits. But I seem to get letters about increases pretty regularly.

2Birds1Stone

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #5 on: August 12, 2015, 02:50:57 PM »
This is actually not the best idea.

A lot of times they will do a hard pull when you request an increase.

You may as well open a new card with a lucrative sign up bonus and earn $500-1000 for your efforts/credit pull.

Cha-ching!
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KittyCat

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #6 on: August 12, 2015, 03:12:33 PM »
This is actually not the best idea.

A lot of times they will do a hard pull when you request an increase.

You may as well open a new card with a lucrative sign up bonus and earn $500-1000 for your efforts/credit pull.

Cha-ching!
I specifically ask the customer service reps if they would result in hard pulls (it's been no so far).

Chris22

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #7 on: August 12, 2015, 03:38:52 PM »
Personally, my cards are usually escalated regularly and I call back and ask to have them brought back DOWN.

Why?

I just don't want that much credit available.
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lbmustache

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #8 on: August 12, 2015, 04:32:09 PM »
This is actually not the best idea.

A lot of times they will do a hard pull when you request an increase.

You may as well open a new card with a lucrative sign up bonus and earn $500-1000 for your efforts/credit pull.

Cha-ching!

BOFA pulled my credit score and then DENIED me for some reason. I was so pissed. Did it for the same reasons as OP. Then I checked my bank account a week or two later and they had given me a larger increase than I had asked for. Yeesh.

Dee18

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #9 on: August 12, 2015, 05:28:50 PM »
I called to decrease my limits....so I could get new cards with huge signup bonuses. (One airline card had raised my credit limit to $50,000 and I didn't know it.) Can't imagine why you would want to increase the limits.

KittyCat

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #10 on: August 12, 2015, 05:31:34 PM »
I called to decrease my limits....so I could get new cards with huge signup bonuses. (One airline card had raised my credit limit to $50,000 and I didn't know it.) Can't imagine why you would want to increase the limits.
It depends on your current limits and your current utilization. For credit score purposes, it's ideal to have 10% or less credit utilization.

Dee18

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #11 on: August 12, 2015, 07:23:50 PM »
Thanks KittyCat! I didn't know that.

K-ice

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #12 on: August 12, 2015, 09:14:38 PM »
Maybe I am wrong, or Canada is different, but I thought an excessive limit was a bad thing.

For example, you have a 50K limit but only really use 5K. You want to get a mortgage for 250K but the bank sees you can get into 50K debt with the swipe of a card. The bank feels 250k is really the max debt you can handle so they only offer you 200k since your borrowing CC potential is so high.

That logic makes sence to me.

I don't recall where I heard this or if I'm just making this up ;)


But I know this one is true.
I know of someone who was pre approved for a mtg then they went out and financed a new jeep. When she found the condo she wanted the bank pulled her credit again, saw the jeep payment & lowered the pre approval by almost 50K based on the jeep payments. Ouch!





big_slacker

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #13 on: August 12, 2015, 11:30:41 PM »
I just went in to my credit union to deposit a check for some side work I was doing. They asked if I wanted a lower rate and higher limit. I said sure, why not?

Next day I get a call and e-mail from my credit protection service (got that for free from the home depot breach, don't skewer me) because they did a hard inquiry. They also asked me to provide them with pay stubs, lol!

But now I have a $10k limit a 2% lower rate, not the either matters since I just auto pay bills and pay off every month. But I could buy a used car with the damn thing now, so easy for people to get in trouble with these things....

Left

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #14 on: August 12, 2015, 11:51:45 PM »
I do mine every six months or so, I'm trying to get limit to 100k. I started at 20k and now I'm close to 50k.

I spend like $500/month but I keep raising it to see how far I can go

Discover card is easy I just use their webpage to autoincrease it. Don't ask for anything that I need to verify, just salary but no check.
« Last Edit: August 12, 2015, 11:55:28 PM by eyem »

iowajes

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #15 on: August 13, 2015, 07:13:07 AM »
Maybe I am wrong, or Canada is different, but I thought an excessive limit was a bad thing.

For example, you have a 50K limit but only really use 5K. You want to get a mortgage for 250K but the bank sees you can get into 50K debt with the swipe of a card. The bank feels 250k is really the max debt you can handle so they only offer you 200k since your borrowing CC potential is so high.

That logic makes sence to me.

I don't recall where I heard this or if I'm just making this up ;)


But I know this one is true.
I know of someone who was pre approved for a mtg then they went out and financed a new jeep. When she found the condo she wanted the bank pulled her credit again, saw the jeep payment & lowered the pre approval by almost 50K based on the jeep payments. Ouch!

I've heard other Canadians say that too.

In the US, I think they just look at percent of available credit used. So they go "wow- she has 100k of credit, and is only using $5k, how responsible".

However, doing what you mention in the last paragraph CAN affect your preapproval. I know when we put the paperwork on our house our realtor told us to not make ANY large purchases on credit cards or buy a car (finance or cash- because a drop in the bank account balance would be seen too) because it could hurt our loan.

Pav

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #16 on: August 13, 2015, 01:43:56 PM »
Depending on the type of credit you're applying for, it is correct that a large available balance could hurt your ability to be approved for a loan or line. Sometimes they will calculate debt-to-income based on the applicant maxing out their lines.

Typically in HELOC applications, lenders may require decrease or closure of exhisting credit lines if they could put the borrower over their heads, debit-to-income wise. This is almost always true, if the borrower is looking to consolidate those exhisting lines / loans.


Frugal D

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #17 on: August 13, 2015, 01:50:00 PM »
Maybe my credit card strategy is wrong? I guess I don't really have one at all.

I just closed my BofA Alaska card because I was tired of the annual fee of $75. I now only have a Wells card which is free and has a line of $30k.
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KittyCat

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #18 on: August 13, 2015, 01:57:24 PM »
Maybe my credit card strategy is wrong? I guess I don't really have one at all.

I just closed my BofA Alaska card because I was tired of the annual fee of $75. I now only have a Wells card which is free and has a line of $30k.
Perhaps. The major factors of credit scores/worthiness include: age of credit, credit utilization, payment history, and derogatory marks. If your BofA credit account was an older account and had a high limit, it will most certainly hurt your score. However, that $75 annual fee stings... Check out Credit Karma to see your approximate scores from Transunion and Equifax.

Eric

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #19 on: August 13, 2015, 01:59:46 PM »
I just closed my BofA Alaska card because I was tired of the annual fee of $75. I now only have a Wells card which is free and has a line of $30k.

In general (no idea with the BofA card specifically) most CCs have a no annual fee version that you can downgrade to. That way, you can keep the same credit limit but skip the annual fee. (and the benefits, usually) This will keep your credit utilization low(er) and your score high(er).
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ghsebldr

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #20 on: August 15, 2015, 10:51:19 PM »
I don't mind paying the $99 a year for my Chase cc, it allows me to keep my rate down to prime. I worked hard for that rate years ago and now am able to access the 50k line for business purposes including volume discounts from several vendors (always at a savings of several hundreds of dollars with each use). Sometimes that annual fee pays off. I rarely have a balance but when I do the interest charge is very reasonable. I can't get a credit line at a rate even close at my local Credit Union.

Dicey

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #21 on: August 16, 2015, 12:57:55 AM »
Earlier this year, my parents were both in a nursing home, had depleted their insurance and needed to switch to private payment. I paid their 12K bill until my brother and I could get their finances consolidated (we're co-executors). DH and I were also about to purchase a house to flip, so I wanted to increase my credit line on my Priority Club M/C to get the points for free hotel stays. I called and asked for an increase to 25K from 14k. They asked my income and I told them I'm retired, which I thought was the kiss of death. The guy asked if I was sure that was all I needed and gave it to me that day. I proceeded to run the card well over 50% of the limit for a couple of months, always paying off the balance. IDK if this was good or bad for my credit score. It was just helpful to have when I needed it. The nice thing about being FIRE with a paid-for house and cars is that I don't really care what my credit score is. I just need my credit to work for me when I need it, which isn't often. Not saying this to be braggy, just that it's an unexpected but nice perk of being FI.
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BTDretire

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #22 on: August 16, 2015, 06:01:04 AM »
Regarding credit score,
The only credit I've used in the last 21 years is a credit card.
Out of curiousity I went to CreditKarma to see what the lack of use would
do to my credit score. It showed only my credit card payment history.
My score came back at 785, I think that's decent, but since I haven't applied
for credit I don't know what they look for.
It doesn't matter, I'm 60 and don't expect to need credit in the future.

KittyCat

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #23 on: August 17, 2015, 10:35:27 AM »
Regarding credit score,
The only credit I've used in the last 21 years is a credit card.
Out of curiousity I went to CreditKarma to see what the lack of use would
do to my credit score. It showed only my credit card payment history.
My score came back at 785, I think that's decent, but since I haven't applied
for credit I don't know what they look for.
It doesn't matter, I'm 60 and don't expect to need credit in the future.
It should show you a lot more than just that under "Credit Factors" on the left. There is also a "See Your Full Credit Reports" in a blue box on the bottom. You can get even more details if you click on the "TransUnion Credit Report" or "Equifax Credit Report" box on the bottom.

Dezrah

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Re: Asking for Credit Limit Increases (on credit cards)
« Reply #24 on: August 18, 2015, 07:17:02 AM »
I recently signed up for our first cash-back card for the rewards and the signup bonus. It turns out they also give you your TransUnion credit score and report every month for free. The same site also offers a Credit Simulator where you can tweak variables like credit limits, utilization, credit diversity, etc. and see what it would do to your score. According to this, Id have to increase my credit limit to about 7x what it is now before I even budge the needle, so frankly Im not going to bother.

Factors like length of history and on time payments seem to have a much bigger impact and obviously I cant game those so easily. For this reason, Im actually a huge fan of getting teenagers their own credit cards (assuming theyre responsible, of course).

The same card also has a complimentary roadside assistance number I can call which saves me about $25 a month on my insurance bill and gives me peace of mind. I don't know why, but they dont actually seem to advertise any of these perks.