GECRB and AMEX CLI's

[david_weaver]

Perhaps someone can advise on how to proceed?

 

A little background for those who do not know:

 

Purchased a major-fixer-upper house last October. Had waited to pull trigger on new credit cards as did not want it to hurt mortgage approval. With repairs to home, utilization went through the roof, maybe to 85-90%. Currently have 10 credit cards or revolving accounts, 7 of which have balances, 3 do not. Another 3 have balances under $200, which could be cleared next cycle if it makes a difference. Basically, it would make a difference on number of cards with balances, but barely 1% on utilization. Overall utilization is now 48% and steadily dropping each month.

 

Now here is the tricky part:

 

The two accounts I would most like to see have CLI's are GECRB (Lowe's and Home Furniture) and AMEX (Delta). The issue is those have some of my higher remaining balances.

 

The furniture was $5,000 of no interest for 24 months. So I have been paying that $200 per month for the last 7 months, but obviously that still leaves a $3,600 balance against $5,000 limit. Lowe's is a little better, as the limit is $5,200 (and I have hit it several times) but currently have it paid down to $2,2000. Amex has a $5,000 limit and a $3,000 balance.

 

Overall, have $34,000 in revolving credit and $16,000 in balances. Credit scores in mid-to-high 600's. As noted, opened several new cards in October after mortgage closed, and two in 2014.

 

Would GECRB and AMEX consider CLI's or should I just use what I have and wait until all the October 2013 accounts are a full year old? Also, with several other cards having no balances, I could balance-transfer the AMEX and Lowe's balances to to other cards if that would help somehow?

 

Thanks all

 

 

[nysbadmk8]

Whens the last Amex CLI you got?

 

 

GERCB is easy.. call underwriting ask for 25K and see what happens.

[BDK]

Don't ask for CLI's with more than 50% of your cards with balances.

 

Don't ask for CLI's if ANY card is over 30% UTL.

[david_weaver]

All three (the two GECRB and the AMEX) were opened in October 2013.

 

Lowe's had an auto-CLI of $200 in March. AMEX has not had an auto-CLI, nor have I ever asked for one yet.

[nysbadmk8]

Don't ask for CLI's with more than 50% of your cards with balances.

 

Don't ask for CLI's if ANY card is over 30% UTL.

 

I will disagree on that. According to Barclays own blog post you dont hit the sweet spot for CLI's till 40% to 60% CL usage...

[Matti]

Don't ask for CLI's with more than 50% of your cards with balances.

 

Don't ask for CLI's if ANY card is over 30% UTL.

 

This.

[nysbadmk8]

All three (the two GECRB and the AMEX) were opened in October 2013.

 

Lowe's had an auto-CLI of $200 in March. AMEX has not had an auto-CLI, nor have I ever asked for one yet.

 

I would suggest an underwriting call to GERCB, and use the onlne system for amex.

[david_weaver]

Great, Barclay's ($2,000 limit) is one of the cards opened more than 12 months ago prior to the house purchase AND with a zero balance.

[nysbadmk8]

http://www.barclaycardring.com/t5/Barclaycard-Ring-Public-Blog/A-Case-Study-of-a-Credit-Line-Increase-and-Decrease-Part-II/ba-p/5840

[david_weaver]

We have perhaps another $5,000-$7,000 worth of work that was waiting for warm weather. My goal is to keep my utilization from going back up. If I charge that, would push utilization back into the low 60's, which I would like to avoid. Hitting the 50% without balances is easy. As noted, 3 already have no balances, and 3 have tiny balances easily erased, leaving only 4 of 10 cards with balances.

 

The bigger issue is the distribution of the utilization. the GECRB furniture is at 72%, $3,600 out of $5,000. Lowe's is at 43%, $2,200 out of $5,200. AMEX is at 60%, $3,000 out of $5,000. I do not want to waste time or inquiries or put myself in a position where i have to wait 6 months before asking for an increase again if it is inadvisable to ask now and unlikely to be approved. I would rather see the utilization rise a bit, continue to make large payments to bring it down, and work to gradually reallocate the remaining balances to stay under recommended thresholds.

[BDK]

 

Don't ask for CLI's with more than 50% of your cards with balances.

 

Don't ask for CLI's if ANY card is over 30% UTL.

 

I will disagree on that. According to Barclays own blog post you dont hit the sweet spot for CLI's till 40% to 60% CL usage...

 

That blog is TOTAL BS. Plenty of us have asked for and received MASSIVE CLI's from Barclays with very little to 0% UTL.

 

The above statement is my own personal experience with all of the major creditors and CU's also.

 

Not to mention, I'm PRETTY SURE the collective majority of CB will agree with those two statements with regards to CLI's.

 

But, as with ALL THINGS credit-related - YMMV.

[BDK]

We have perhaps another $5,000-$7,000 worth of work that was waiting for warm weather. My goal is to keep my utilization from going back up. If I charge that, would push utilization back into the low 60's, which I would like to avoid. Hitting the 50% without balances is easy. As noted, 3 already have no balances, and 3 have tiny balances easily erased, leaving only 4 of 10 cards with balances.

 

The bigger issue is the distribution of the utilization. the GECRB furniture is at 72%, $3,600 out of $5,000. Lowe's is at 43%, $2,200 out of $5,200. AMEX is at 60%, $3,000 out of $5,000. I do not want to waste time or inquiries or put myself in a position where i have to wait 6 months before asking for an increase again if it is inadvisable to ask now and unlikely to be approved. I would rather see the utilization rise a bit, continue to make large payments to bring it down, and work to gradually reallocate the remaining balances to stay under recommended thresholds.

At the very least, pay the 3 smalls down to $0 and wait for them to report as such!! Then ask for your CLI's if you like.

[nysbadmk8]

 

 

Don't ask for CLI's with more than 50% of your cards with balances.

 

Don't ask for CLI's if ANY card is over 30% UTL.

I will disagree on that. According to Barclays own blog post you dont hit the sweet spot for CLI's till 40% to 60% CL usage...

That blog is TOTAL BS. Plenty of us have asked for and received MASSIVE CLI's from Barclays with very little to 0% UTL.

 

The above statement is my own personal experience with all of the major creditors and CU's also.

 

Not to mention, I'm PRETTY SURE the collective majority of CB will agree with those two statements with regards to CLI's.

 

But, as with ALL THINGS credit-related - YMMV.

As always.

 

Sent from my SM-G900V using Tapatalk

[BDK]

BTW, Amex started life as a "charge card" company and still prefer being PIF monthly - even on their revolving credit cards.

[BDK]

http://creditboards.com/forums/index.php?showtopic=514657&p=4960658

 

http://creditboards.com/forums/index.php?showtopic=514657&page=1

[david_weaver]

OK, I think I will proceed as I have been. My first goals were to work on getting some of the cards paid down to zero and to get overall utilization backed off danger-zone levels.

 

As the June payments cycle through, I should hit 5 (maybe 6) of the 10 revolvers with zero balances and utilization around 46%. I will work to get the remaining others paid down to under 30%, and maybe revisit the CLI question in October or November when I not only meet both criteria BDK references but most of the newer accounts will be a year old.

[BDK]

I don't want to seem discouraging or negative! I only wish you success on your CLI requests.

 

*Sometimes* CLI's are granted with high UTL, just not very often.

 

BEST of luck to you with whatever you decide!

[david_weaver]

No, the advice was absolutely not negative, nor discouraging.

 

My goal was to try to decipher when best to ask for CLI's, and what set of circumstances (balances, card utilization, overall utilization, age of accounts, etc.) would provide the best opportunity for approval and continued growth of limits and scores.

 

When we purchased the house in October, we knew it would take likely a year to get everything as we wanted it AND get everything paid for. I was looking to see if there were some interim CLI's to be had based on what had been accomplished so far, but it is absolutely not discouraging to continue the plan which has been successful so far.

 

As someone who would rather not wind up kicking themselves with regret, I ALWAYS prefer forthright advice, even if the advice is to tell me to wait.

 

Thanks

[BDK]

Good!!

[Demonico]

I would like to chime in on this one a bit for a somewhat dissenting opinion.

 

I recently got Discover to give me a 7k CLI. The card started last May with a 3k line and when I asked for the CLI I had just paid it under 90% util (riding the 0% intro offer).

 

That payment hadn't reported yet so my report showed like 96% or some such amount. On top of that, I was carrying a balance on most of my cards; Discover was the only one that high % wise but a few were over 50%.

 

The 7k they gave me allowed me to BT almost everything I was carrying to them (I paid off all but a store card that is at 0% for another 3 years).

 

 

 

BDK's advice is most assuredly sound and stands a better chance at approval but it can be done.

[david_weaver]

Yes, but most of what is on Lowe's was major purchases and has no interest for 18 months, and the GECRB furniture has no interest for 24 months. So there is no way to balance-transfer anything from my majors to these store cards, and no reason to balance transfer from them to any majors that might charge interest. The lone exception would be AMEX, and I would rather focus on paying off that last $3,000 on there before asking them for more.

[virtualtreasure]

Don't ask for CLI's with more than 50% of your cards with balances.

 

Don't ask for CLI's if ANY card is over 30% UTL.

Decisive rule of thumb on CLI requests.

 

Tried and true if seeking to optimize best possible outcome.

 

 

 

Don't ask for CLI's with more than 50% of your cards with balances.

 

Don't ask for CLI's if ANY card is over 30% UTL.

 

I will disagree on that. According to Barclays own blog post you dont hit the sweet spot for CLI's till 40% to 60% CL usage...

 

That blog is TOTAL BS. Plenty of us have asked for and received MASSIVE CLI's from Barclays with very little to 0% UTL.

 

The above statement is my own personal experience with all of the major creditors and CU's also.

 

Not to mention, I'm PRETTY SURE the collective majority of CB will agree with those two statements with regards to CLI's.

 

But, as with ALL THINGS credit-related - YMMV.

 

 

Truth.

 

and yep, have to read through the lines with that blog and sorta take it with a grain of salt.

 

BTW, Amex started life as a "charge card" company and still prefer being PIF monthly - even on their revolving credit cards.

And again +1

 

OK, I think I will proceed as I have been. My first goals were to work on getting some of the cards paid down to zero and to get overall utilization backed off danger-zone levels.

 

As the June payments cycle through, I should hit 5 (maybe 6) of the 10 revolvers with zero balances and utilization around 46%. I will work to get the remaining others paid down to under 30%, and maybe revisit the CLI question in October or November when I not only meet both criteria BDK references but most of the newer accounts will be a year old.

At the time of requests, will ideally have less than 1/2 of ALL accounts

 

AND less than 1/2 of REVOLVING accounts reporting a balance

 

Get as close to overall UTI reporting <30% as workable and no cards (or as few as possible, if any) reporting >50%.

Edited May 30, 2014 by virtualtreasure