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When is a good time to ask for credit increases?


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Hi all

 

I was wondering when is it a good time to ask for a credit increase from your credit card company? I know percentage of credit used affects your score. Does getting a credit increase affect your score positively as much as paying down a current balance? ( for example a credit line of 2000 that has a 50% utilization of 1000. Does getting a credit increase to 4000 which brings the utilization to 25% have the same effect if I were to have paid that original 2000 down to 250 or 25%)? Also I am hesitant to add any other credit cards to the my mix fearing a drop in scores. Right now I am at 720 across all 3 bureaus but my current credit cards have terrible interest rates but they are my oldest accounts. Is there a good time to get new credit cards? Especially ones that offer better interest rates and perks?

I've worked hard for year to go from the low 400s to get to where I am, It is just crushing when my scores dip.

All I basically have going currently is a mortgage, 5 credit cards with small to medium balances, and a personal loan. All of which have 0 late, 0 missing payments.

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39 minutes ago, hegemony said:

If you are getting ready for a mortgage application, start PIF on all revolving accounts.

 

utilization is utilization so a CLI will help but remember that FICO is only a small part of the mortgage process (and what might help bankcard FICO may not help mortgage-enhanced FICO)

I already have a mortgage. Not looking to get another at the moment. Just wondering about CLI and how they help and when it is proper to ask for one? 

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37 minutes ago, purplepills said:

I already have a mortgage. Not looking to get another at the moment. Just wondering about CLI and how they help and when it is proper to ask for one? 

sorry for misreading. In terms of timing of a CLI request, a lot depends on the card issuers.

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You generally are NOT going to want to ask when utilization on a card is over 40-50%...doing so can be seen as indicia of looming bustout.  Similarly, give some time after payment in full before seeking the increase...it can be the same sort of situation.  Not saying YOU are at risk of bust-out, but that is how their models view those situations...

 

The time to seek increases is when you DON'T need the increase. 

 

In the interim, focus on paying everything to zero...makes no sense to be carrying a balance EXCEPT and UNLESS it is a 0% transfer amount, in which case you want to ALSO make sure you are not putting other purchases on the card. 

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30 minutes ago, centex said:

You generally are NOT going to want to ask when utilization on a card is over 40-50%...doing so can be seen as indicia of looming bustout.  Similarly, give some time after payment in full before seeking the increase...it can be the same sort of situation.  Not saying YOU are at risk of bust-out, but that is how their models view those situations...

 

The time to seek increases is when you DON'T need the increase. 

 

In the interim, focus on paying everything to zero...makes no sense to be carrying a balance EXCEPT and UNLESS it is a 0% transfer amount, in which case you want to ALSO make sure you are not putting other purchases on the card. 

Aaaaahhh... ok, that makes total sense.

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4 hours ago, purplepills said:

Is there a good time to get new credit cards? Especially ones that offer better interest rates and perks?

I can't help you with interest rates.  We advocate not carrying balances, which makes the interest rate immaterial.

 

Look at your least useful cards and who issues them.  Does the same issuer have a card that you'd rather have instead?  PCing might be an option to get a card with better benefits while retaining the account age.

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21 hours ago, cv91915 said:

I can't help you with interest rates.  We advocate not carrying balances, which makes the interest rate immaterial.

 

Look at your least useful cards and who issues them.  Does the same issuer have a card that you'd rather have instead?  PCing might be an option to get a card with better benefits while retaining the account age.

What is "PCing"?

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On 1/18/2020 at 4:27 PM, purplepills said:

aaaahhhhh... Ok, I didn't know that was possible. Does that reset the length of credit? 

Usually, if a product change results in a new card number, then it would report as a new card with a new open date. If it doesn't result in a new card number, then it doesn't reset anything. You can ask them at the time of product change, if that is the case.

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49 minutes ago, generallissimo said:

Usually, if a product change results in a new card number, then it would report as a new card with a new open date. If it doesn't result in a new card number, then it doesn't reset anything. You can ask them at the time of product change, if that is the case.

Not true. I’ve done PCs and it just updates the account number on my reports. All other info stays the same. Same thing if your card is lost or stolen and the card number changes. 

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On 1/23/2020 at 7:58 PM, DPB said:

Not true. I’ve done PCs and it just updates the account number on my reports. All other info stays the same. Same thing if your card is lost or stolen and the card number changes. 

I wouldn't say that the comment is categorically untrue, but I don't think it's common for a PC to result in a new TL.

 

I just did a PC of the Bank of America World Wildlife Fund card from the Mastercard-branded version to the Visa-branded version, which by necessity requires a new account number. 

 

The possibility of a new TL never entered my mind.

 

This outcome might be more common with smaller issuers like amateur credit unions.

 

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  • 8 months later...
On 1/17/2020 at 11:48 AM, purplepills said:

Hi all

 

I was wondering when is it a good time to ask for a credit increase from your credit card company? I know percentage of credit used affects your score. Does getting a credit increase affect your score positively as much as paying down a current balance? ( for example a credit line of 2000 that has a 50% utilization of 1000. Does getting a credit increase to 4000 which brings the utilization to 25% have the same effect if I were to have paid that original 2000 down to 250 or 25%)? Also I am hesitant to add any other credit cards to the my mix fearing a drop in scores. Right now I am at 720 across all 3 bureaus but my current credit cards have terrible interest rates but they are my oldest accounts. Is there a good time to get new credit cards? Especially ones that offer better interest rates and perks?

I've worked hard for year to go from the low 400s to get to where I am, It is just crushing when my scores dip.

All I basically have going currently is a mortgage, 5 credit cards with small to medium balances, and a personal loan. All of which have 0 late, 0 missing payments.

how did your CLI requests work out?

Edited by hegemony
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